Call for your free quote 0800 955 0058

London leads housing crisis and need for new homes

Soaring demand from homebuyers exceed the supply of properties is creating a housing crisis with rising prices.



London leads the demand for new properties for sale and needs another 50,000 new homes to meet its growing population currently at 8.3 million.

By 2040 London’s population is expected to reach 10 million an increase of 1.6 million but new house construction is averaging only 28,500 creating a serious shortfall.

This increases pressure on first time buyers to afford their first property and home movers with a growing family to find their next house.

Surveyors call for action

The Royal Institution of Chartered Surveyors (Rics) indicates there are not enough homes being built across the country.

Simon Rubinsohn of Rics has said that the number of homes currently for sale is far below the level of demand.

The lack of new homes could mean remortgage buyers staying in their current property and increasing their mortgage to releasing capital which they can use to improve their home.

After taking the opinion of 300 chartered surveyors across the country Rics reported in October that price rises outnumbered no rises by the greatest margin since 2002.

Enormous pressure on housing

The lacking of housing in London could compromise the city's ability to compete as first time buyers are priced out of the market, unable to get a mortgage.

There may be fewer suitable homes on the market as the equity release buyer can avoid downsizing and agree a lifetime mortgage to access cash from their home.

Further pressure comes from buy-to-let investors able to place a large deposit for smaller rentable properties and a limited number of larger properties for home movers to buy.

Young professional unable to afford buying a property have to consider living at their parents home, joining large waiting lists for council properties or renting further out of London in order to work in the city.

The lack of supply is leading to a housing crisis that can fuel the next house price bubble at a time when London is seen as the best city for skilled workers.

What are your next steps?

Talk to our London City Mortgage advisers if you are an older homeowner releasing equity from your property, we can recommend the lifetime mortgage to access wealth to consolidate debt, home improvements or gifting to a family member.

Learn more by using the equity release calculator, property value tracker chart and mortgage cost calculator. Start with a free mortgage quote or call us and we can take your details.

At LCM our mortgage brokers can provide advice if you are a first time buyer, moving home, want to remortgage your existing home to a new cost effective mortgage deal or are a buy-to-let investor.

Use your dashboard to access online mortgage quotes, money off vouchers and start your mortgage application online 24/7 on desktop, tablet or smartphone.


Mortgage Best Buys

These are examples of mortgage products we can approach with many more offering interest rates and flexibility to meet your needs.

1.19% Fixed Rate
60% Loan to Value
£999 App Fee
2-Years Time
Reverts to 3.59%
1.17% Fixed Rate
60% Loan to Value
£1,025 App Fee
Until 31/09/2022
Reverts to 3.59%
1.16% Fixed Rate
60% Loan to Value
£1,525 App Fee
Until 01/11/2022
Reverts to 4.09%
1.18% Fixed Rate
60% Loan to Value
£1,034 App Fee
Until 31/10/2022
Reverts to 3.59%

The latest mortgage news


12 Sep 2022

Fifth of homeowners use mortgage advance to go green

As energy bills are rising 22% of homeowners are using mortgage advances to improve the efficiency of their homes to reduce costs.

26 Aug 2022

Equity released hits record levels as more people access cash from homes

Homeowners accessing cash from their properties increased 26% over the year with over £3 billion of equity release in the first six months.

29 Jul 2022

Home movers drop over a third in 2022 compared to last year

The stamp duty holiday last year produced bumper demand from home movers now down a third but still above pre pandemic levels.

18 Jul 2022

Property market is cooling after sixth house price record

Asking house prices rise for the sixth record in a row to £369,968 as demand to buy continues although at a slowing rate.

Call for your free quote 0800 955 0058

  • IMPORTANT

    Equity Release may involve a Lifetime Mortgage or a Home Reversion Scheme. To understand the features and risks, please ask for a personalised illustration. Equity Release may affect your entitlement to means tested state benefits and will impact on the size of your estate. For Equity Release London City Mortgages charge a fixed fee upon completion of £695. For Mortgages a fixed fee is charged on application. Typically this is from £295 up to £495 for the services selected.

  • WARNING

    Equity Release - Equity Released from your home will be secured against it. Mortgages – Your home may be repossessed if you do not keep up repayments on your mortgage or other loans secured against it. Think carefully before securing other debts against your home. The information contained in this website is subject to the UK regulatory regime and is therefore intended for consumers based in the UK.

    CONTACT

    Address:
    9th Floor, 30 Crown Place
    London, EC2A 4EB

    Phone:
    0800 955 0058

    Email:
    info@londoncitymortgages.co.uk

    London City Mortgages Limited is a registered company in England & Wales under company number 09278987. London City Mortgages Limited is an Appointed Representative (FCA no. 655965) of Blackstone Moregate Limited (FCA no. 459051) which is authorised and regulated by the Financial Conduct Authority. LCM and LCM Equity Release are trading names of London City Mortgages Limited.

    2024 © London City Mortgages.