Mortgage rates drop, but deposits soar

Recent data from Halifax indicates that buying a home in London has become more affordable, with the proportion of earnings spent on monthly mortgage repayments decreasing from 42.1% in 2023 to 35.7% this year. Matt Thompson, head of sales at Chestertons, noted: "London's property market has recently seen an uplift in activity," as buyers respond to lower interest rates and more attractive mortgage products. However, despite this improvement, the average house price in London remains £539,238, nearly double the UK average of £292,508. First-time buyers are particularly affected, as the upcoming stamp duty changes will limit their options, with only 8% of homes in London valued under £300,000. Analysts at Knight Frank warn against over-reliance on falling interest rates, predicting a slowdown in transaction levels next year.

Evening Standard (29/11/2024)