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Nationwide Boss: Frenetic House Price Activity In London Is Easing

Wednesday 29th May 2014

The Chief Executive of Nationwide, Britain's largest Building society, has said the "frenetic" activity driving soaring house prices in London is starting to ease. graham bealeGraham Beale, Boss of building society Nationwide. Picture: PA.

Graham Beale described the housing market as going from "a frenetic state" to "a very busy state".

"I am a great believer in natural corrections. If house prices come up and up and up, there will come a point when people won't pay or they can't pay." He said.

"I think there are some indications that we are starting to see that correction within parts of London."

Mr Beale also warned the Bank of England against taking any action to cool the market, which is rumoured to happen in future.

The Bank has said lenders could be asked to restrict borrowing terms or forced to hold more cash on their balance sheets if necessary.

However, latest figures show mortgage approvals falling and Mr Beale suggested waiting until October for a "more considered view" of how the market had developed.