Response to CML's Regional Lending Characteristics for London Q3 2014
Thu 27 Nov 2014
Peter Rollings, CEO of Marsh & Parsons, comments:"Despite much talk of a cooling market, the embers are still burning brightly in terms of mortgage activity in the capital. It is particularly encouraging that first-time buyers the lifeblood of the property market are still able to find suitable property in London, with both monthly and annual increases reflecting this. The fact first-time buyer loans are now back to pre-recession levels show that potential homeowners are now regaining the confidence and appetite that was damaged by previous economic uncertainty.
"Vital as those taking their first step on the property ladder are, it is important that those further up the chain are moving too to prevent any bottlenecks and to this end it is heartening that home mover activity also increased in the third quarter. While overall London lending is now back to 2007 heights, it is worth noting that figures have remained pretty steadfast throughout 2014 which suggests that the market in the capital is becoming less volatile and more consistent. Having eased the first-time buyer logjam and in light of reports that those in their 30s and 40s are struggling to obtain mortgages due to the terms encroaching on retirement age, we must ensure that this important demographic doesnt become the next problem area for the industry."