LCP representative highlights inaccessibility of mortgages

Date:Monday 20th September 2010
Author: Susanna Kavka

A London Central Portfolio (LCP) representative has pointed out that the inaccessibility of mortgages is having a negative impact on the UK housing market.

Hugh Best, head of investment management at the company, predicted the sector could struggle over the next few years as a result of this difficulty in securing a mortgage.

The other major factors he identified are worries about a double-dip recession, employment levels, the state of the economy and the austerity measures set to be implemented by the coalition government.

However, Mr Best added: "In many ways, a weak domestic economy will assist international investors buying in London central by keeping base rates at historic lows and continuing to suppress sterling."

These remarks were made in response to a study by the Royal Institution of Chartered Surveyors, which showed house prices in London fell for the first time this year.

The LCP representative suggested such figures are closely linked to the national housing sector, as Greater London accounts for 15 per cent of the population of the nation.