The Council of Mortgage Lenders (CML) are reporting that the number of homeowners moving house in London last year fell to its lowest level for over 25 years.
The CML also stated that home-movers in the capital took out just 32,400 loans in 2016, not just a 10% decrease compared to 2015, but also the lowest number since the recession in 1991. The number of first-time buyers needing a loan also fell by 5%.
“Persisting supply and affordability issues appear to be exerting an ongoing restraint on growth, meaning there is some uncertainty around how the market will perform going into 2017,” said the CML’s director general, Paul Smee.
The average home mover in London borrowed £335,000 in 2016, which represented just under four times annual household income whilst the average house price in the capital is now £484,000, according to the Office for National Statistics.