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.
“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.