The average mortgage amount in St James’s – a central district of London’s Westminster – is £10.28m according to peer-to-peer secured lending platform Lendy.
This is 22 times the highest valued areas outside London and the South East: Sandbanks in Dorset, known as ‘millionaires’ playground’, has an average mortgage amount of £459,936.
Liam Brooke, co-founder of Lendy, said: “Banks are potentially getting carried away with rising owner-occupied housing prices, leaving less money for new housing developments.
“Banks continue to fund mortgages in property hotspots like London and the south-east as property prices are predicted to continue to rise over the long term. However, this does not address the housing gap by looking to lend to developers.”
“Large amounts of lending for residential mortgages do not deal with the supply side of the housing crisis – outstanding lending to property developers is still close to record low levels.”
London postcodes of West Marylebone (191%), Westminster (156%), East Marylebone (135%), and Fitzrovia (129%) have all seen growth of over 125% in the past five years.