Despite our belief that the London economy and labour market will continue to perform strongly, we don’t expect that to allow house prices in the capital to go on outperforming. Further house price growth will require another rise in the amount banks are willing to lend in relation to earnings – something that the tougher mortgage regulatory environment all but rules out.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services