Funding for Lending 'playing into hands' of wealthier Londoners

The Funding for Lending Scheme is encouraging richer Londoners to recycle their property wealth.

According to central London agent Marsh & Parsons, the Government’s flagship FLS  – which has led to lenders concentrating on borrowers with larger deposits – has helped London property owners make a move.

The firm says that the proportion of Londoners upsizing is now at its highest level for two years.

While foreign buyers are still responsible for 52% of purchases in Chelsea, followed by 47% in Kensington and 46% in Notting Hill, Marsh & Parsons says an increasing number of domestic home owners are ‘recycling their wealth in the capital’.

With London the only place in the UK to have had strong house price growth, the firm says home owners can now use their increased financial clout to get a mortgage on favourable terms.

CEO Peter Rollings said: “The Funding for Lending Scheme is knocking down rates, and, unsurprisingly, banks are still favouring those with substantial deposits with the best deals.

“This is playing into the hands of London home owners who have seen their equity grow and are looking to move.”