Lenders are raising interest rates on development loans for luxury homes in London amid fears there may be an oversupply of such properties.
The interest rates charged on funding for the construction of such properties have risen by around 75 basis points since January, according to Randeesh Sandhu, the chief executive of Urban Exposure Real Estate.
Savills director William Newsom said the last six months have seen the largest rise in financing costs for major central London developments in four years.
