London house prices to ‘fall 10 per cent by autumn’ as interest rate rises send mortgage payments soaring

London buyers will be particularly vulnerable to a slump as interest rate rises on large loans push up mortgage payments

London home owners were today warned of a 10 per cent slump in property prices by the autumn as higher interest rates send mortgage payments soaring.

Leading City forecaster Samuel Tombs, chief UK economist at research firm Pantheon, said the capital is particularly vulnerable to a slump because London buyers have to take on such large loans to scramble on the property ladder.

In a UK Housing Watch analysis of the market he said prices nationally would fall eight per cent “peak to trough… with the bottom coming in the autumn”.

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Image Credit: ES

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