Figures from the Financial Conduct Authority (FCA) show the number of property sales with mortgage loan values of more than £5m leapt from 169 in 2020 to 279 last year – a 65% increase. It will be no surprise that the vast majority of this megabucks real estate is in and around London. Last year 220 mortgage loans of £5m-plus were secured on properties in Central and Greater London, compared with 49 in the other regions and 10 that were classified by the FCA as “unknown”. Property prices increased by around 10 per cent over the past two years, with the global health pandemic sparking the so-called ‘race for space’. This will be awful news for those who are attempting to now get onto the property ladder.
Do you believe this increase is justified and what will be the long term effects?