Reported 1 day ago
Rachel Reeves' proposed mortgage regulation overhaul could lead to an increase of up to £20,000 in house prices for first-time buyers in London, according to analysis by Savills. The changes aim to loosen lending rules to boost economic growth, but they may heighten demand and, consequently, prices, unless matched by a rise in housing supply. If loan-to-income ratios are raised, first-time buyers would require lower deposits, potentially driving prices even higher. Policymakers face the challenge of balancing access to lending with ensuring borrowers can still afford repayments.
Source: YAHOO