More storm clouds appeared over central London’s housing market at the weekend.
The Bank of Ireland has announced that it is capping its mortgage lending in the UK at £500,000, effectively excluding itself from the central London market. “We’re conservative in the London market where it is quite heated and it’s difficult for first time buyers in particular to get onto the housing ladder” the bank’s chief executive, Des Crowley, told the Daily Telegraph.
Meanwhile the developer Berkeley blames increases in stamp duty for high-end properties as being the cause of a four per cent fall in sales, mostly in London, between November and February. The firm claims this will restrict “social mobility” although it says it remains confident of achieving £2 billion of pre-tax profits in the three years to 2017-18.
Now some developers have chosen to extend leases on central London offices, even though some have consent for conversion into apartments.
Derwent London has reportedly deferred proposals to turn a Savile Row office block into 29 residential units while Land Securities has extended the office use of a 29-storey block it owns near Victoria, despite having planning agreement for conversion into 206 flats.
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