Mortgage News
Prime central London has reached peak, warns bridging lender
Property prices in prime central London have reached their peak warned London-based short-term finance lender Paxton Private Finance.
Partner David Kinane advised London investors to “keep a close eye on” London’s prime market which he described as “frothy”.
The latest figures from the Office of National Statistics showed house price growth slowing down to a rate of 0.6% in May from an average of 0.8% per month over the last six months.
And in central London this fell further to growth of 0.2%.
But Kinane said he did not have concerns that this would have any effect on its levels of lending.
“There is still a lot of building going on outside the prime areas of London – there is room for growth in property prices if you step outside the capital.
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“Our sector of the London market is possibly the safest,” he added.
At the end of April Paxton secured a new funding line from one private investor for £30m which Kinane said would allow it to continue with its ‘flexible funding’ approach.