The number of central London properties paid with cash is shocking, and more proof that the UK’s property market is broken.
It has been revealed that over 70% of ‘prime central London’ dwellings sold this year have been purchased entirely using cash, reports The Guardian.
The geographical area of this ‘prime’ area stretches from Chelsea to Camden and Notting Hill to Westminster.
Nothing changes?
Three years ago the same paper reported that; ‘Luxury London homes still used to launder illicit funds.’
The report, put together by the Treasury and the Home Office wrote: “Corrupt foreign elites continue to be attracted to the UK property market, especially in London, to disguise their corruption proceeds.”
Seven years ago anti-mafia journalist Roberto Saviano said London is the heart of global financial corruption.
Interest rates
The UK base rate could be raised as high as 7 per cent to tackle stubbornly high inflation.
A typical five-year home loan has risen from 5.97 to 6.01 per cent, according to financial data experts Moneyfacts
PM Rishi Sunak also refused to say whether he would hit his target of halving inflation by the end of the year.
However, the under fire PM vowed to “just keep throwing everything at it”.
Bank chiefs are meeting Financial Conduct Authority (FCA) officials to discuss concerns surrounding interest rates for savers lagging behind the cost of mortgages.
Bosses from HSBC, NatWest, Lloyds and Barclays are expected to attend.
London properties paid with cash
Frances McDonald, director of residential research at Savills, said: “The established prime markets most synonymous with equity rich buyers are holding up the strongest amid mortgage market turbulence.
“While London’s prime market continues to perform more strongly than expected, the most recent interest rate rises are likely to squeeze buyer budgets and increase price sensitivity, particularly in the more domestic outer prime locations where more buyers are dependent on borrowing. Sellers will need to price pragmatically to align with prevailing buyer expectations.”
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Related: Carol Voderman slams Edwina Currie’s mortgage message as govt announce help
