London Property News

Housing Market Report

Author: Callum Roberts Wednesday, 1 February 2012
The housing market is still a little sluggish with prices across the UK rising by an average of 1% in 2011. However, not surprisingly London saw the strongest growth with an overall rise of 5.5% according to the Nationwide. This is no surprise given the number of international clients who bought in London last year, as they view it as a sound investment opportunity and safe haven for their money.


Lenders continue to tempt First Time Buyers which are crucial in stimulating the rest of the housing market. There are still some great First Time Buyer/Higher Loan To Value deals available at the moment and some also come with free basic valuation, and £250 cash back towards legal fees. Rates have crept up slightly since the start of the year though.



· 95% deals start at 5.75%

· 90% deals start at 4.99%

· 85% deals start at 3.39%



At these levels, many lenders will allow clients to borrow between 4 and 4.5 times their income but they must have an excellent credit score and the mortgage must be affordable on a capital and interest basis both now and also on the lenders Standard Variable Rate.


With rental payments continuing to rise, many clients are keen to get on the housing ladder as soon as possible, especially as their mortgage payments are often considerably lower in comparison. One dark cloud on the horizon is The Government Stamp Duty holiday ends on the 24th March and reverts back to 1% tax payable on property sales over £125,000 up to £250,000. Although some experts have called for this to be extended I think it is highly unlikely, as the government unveiled other measures in November which they will be introducing to help First Time Buyers.


We have had a busy start to the year as many clients look for our help in sourcing the most competitive deal for their lending requirements. At the time of writing the best rates available at 70% LTV are:-



· 2 yr tracker 2.44%

· 2 year Fixed 2.89%

· 3 year Fixed 3.09%

· 5 Year Fixed 3.49%



Should you require any Mortgage or investment advice, please contact Dillon Callum who can pass your details on to our recommended Business Development Manager at Charles Cameron.

source: Charles Cameron Associates

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