Nationwide chief gives a warning
- January 12, 2016
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Graham Beale (chief executive of the Nationwide building society) has given warning that the prime central London house price growths are simply unsustainable.
He says “I am not saying there is going to be a crash but at the current rate of price rises fewer and fewer people will be able to afford to buy in London. We lend to people who are buying in Acacia Avenue not Park Lane but it’s in Park Lane that I suspect we could see the London market start to level out”.
Beale warns that “Nationally, house prices have been rising by between three per cent and four per cent for a number of months and that is sustainable with wages going up by around 3%, but in London we continue to see low double-digit rises, which does not look sustainable”.
Much of the market in the capital is motivated by the cash buyers rather than mortgage borrowers and many of the cash buyers come originate foreign buyers and buy to let deals.