There was a 16 per cent drop in the value of mortgage loans for buying in London in the fourth quarter of 2014, compared to the previous three months.
The total of 20,800 loans valued at £5.8 billion is also six per cent lower than in the same final quarter of 2013.
"London is a unique market, with equally unique conditions and challenges, which will need a focus on all types of housing tenure going forward. 2014 had the highest annual level of borrowers buying a home in London since 2007, with first-time buyers leading that growth, but there have been recent signs of the market cooling. The dip in the last quarter of the year may suggests that affordability pressures do still persist according to Paul Smee, director general of the Council of Mortgage Lenders, which released the figures.
Lending in Greater London accounted for 21.5 per cent of all-UK house purchase activity last year, down from 22.6 per cent in 2013. Meanwhile first-time buyers in London were advanced 48,800 loans representing £11.8 billion - actually seven per cent higher by volume compared to 2013 and 18 per cent higher by value.
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