High Prices And Increased Borrowing Costs Slow London’s Property Market
A survey conducted by Hometrack Ltd shows a cooling property market in London, with many potential buyers reluctant to purchase properties amid rising house prices and further limitations on ‘risky’ mortgages. This is also compounded by the probability of a benchmark interest rate increase by the Bank of England (projected by some experts to reach 0.75% next May). Houses are taking, on average, longer to sell than in previous months of 2014 and fewer postcode districts are showing an increase in property prices.
As reported on Bloomberg.com,
“There’s ‘evidence of growing resistance to rapid price rises in the London market,’ said Richard Donnell, director of research at Hometrack. ‘Talk of a housing bubble and warning from the Bank of England have impacted sentiment.’