Liquid error: wrong number of arguments (2 for 1) How SW London has more mortgage debt than Wales: Homeowners now owe nearly 30bn raising fears about a housing bubble in the capital | Marsh & Parsons Sales and Lettings Estate Agents London

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How SW London has more mortgage debt than Wales: Homeowners now owe nearly 30bn raising fears about a housing bubble in the capital

Tue 08 Apr 2014

How SW London has more mortgage debt than Wales: Homeowners now owe nearly 30bn raising fears about a housing bubble in the capital

House prices in the SW postcode area have risen up to 30 per cent in a year.

The amount owned on homes in south west London is 29.4 billion.

This compares to the whole of Wales where only 28.6 billion is owed.

Average cost of a London home is 365,000 in capital but 140,000 in Wales.

By Becky Barrow, Business Correspondent

Homeowners in south-west London have nearly 30billion of mortgage debt, more than in all of Wales, a report revealed yesterday. The figures, from the Council of Mortgage Lenders, raise fears about a housing bubble in the capital with new records being broken every day. Estate agents say prices in the SW postcode area, which includes Balham, Brixton, Chelsea, Clapham, Earlsfield and Fulham, have risen by up to 30 per cent in a year. The SW11 postcode of Battersea, pictured, has seen house prices rise up to 30 per cent in a year.

The amount owed on homes in the area is now 29.4billion, compared with only 28.6billion for the whole of Wales. The two figures highlight the extraordinary gulf between house prices in London and the rest of Britain. While the average cost of a home in Wales is currently 140,000, below the national average, the average in London is nearly 365,000.

Of 10,834 UK postcodes analysed by the council, the one with most mortgage debt was 'SW11 6'. An exclusive enclave, it covers around 4,370 homes in Battersea and Clapham Junction, including those onBroomwood Road and Manchuria Road. Its residents have 665million of mortgage debt, with many young couples taking out huge loans to buy homes which now sell for around 1.1million, according to the property website Zoopla.

Hundreds of miles further north, the smallest mortgage debt can be found in 'IV48 8', which includes the Isle ofSkye. The figure for the whole of this picturesque district is just 633,183, the size of some individual mortgages in south-west London. South west London alone owes 29.4 billion in residential mortgage loans

Paula Higgins, of the Homeowners' Alliance, a campaign group, warned families might not be able to cope when rates rise from their lows of the past five years. 'There is a bit of a frenzy out there. People really need to make sure that they can afford their mortgage in the long term,' she said.

Peter Rollings, of estate agents Marsh & Parsons, said demand in south-west London was 'particularly buoyant'. A small two-bedroom flat in Fulham went on the market for 495,000 last week and has already had 41 visits and three bids at the asking price. The SW postcode area, includes Balham, Brixton, Chelsea, Clapham, Earlsfield and Fulham. He said some clients were being priced out of central London, including one couple now buying a 2.2million house in Clapham. 'If they had bought in Chelsea, the same property would have cost 5million,' he said. 'In south-west London, we have 48 potential buyers registered for each available property.'

Matthew Pointon, a property analyst at the consultancy Capital Economics, said the CML's figures 'support the argument of bubble-like activity in parts of London'. The council's breakdown puts total mortgage debt at 897billion. Its figures cover three quarters of the market and exclude smaller building societies and other lenders. Estate agents said houses were also selling quickly in some parts of Wales.

David Baker, an estate agent in Penarth, South Glamorgan, said: 'We have had more completions in the last three months than any other three consecutive months in the last 30 years.'

Kelvin Francis, from Cardiff, said gazumping was happening there for the first time since 2007. Nationwide says the gap between the cost of a home in the capital and the rest of the UK is the widest that it has ever been.

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