Commenting on the CML mortgage lending figures released yesterday, he said: “The buyer profile is changing dramatically because of the mortgage drought – instead of the usual family moves, we’re seeing a lot of investment in the property market in London. Once upon a time the percentage of moves by families and other prospective property owners with a mortgage made up the majority of the market – at least 75%- now it’s down to around 25%. From the start of the year we’ve been seeing cash rich buyers with a surplus of savings who can see the value there is in the London market at the moment. In fact, competition for the best buys is rife – we’ve conducted 17 ‘best and final offers’ so far this year.
“But this is an unsustainable situation for the UK – the government must use its now substantial influence on the banks to push them to lend more, and to people with lower deposits. I’m not talking 100% mortgages, but seeing some affordable 85% deals come back onto the market would undoubtedly help people get their foot on the property ladder and help to boost the property sector and the wider economy.”
