With the effects of Brexit on the nose, the property market in London is giving in. Affordability for home buyers is actually improving at the fastest rate in 8 years.
The new figures indicating the decrease in prices is especially potent now, as it will establish the stage for the ever so active spring market.
The situation with home prices that is taking place right now is unprecedented as the already traditional increase that previously scared first-time buyers is no longer an issue all over the UK and even in London, a city known for insane price tags on properties.
More on the matter, the sellers in London, in particular, are dropping the prices in an attempt to attract new buyers who are uncertain in their decision due to the instability in politics. Right now the prices dropped by 2.1% to an average of £614,000.
Take the great news with a pinch of salt though, as the market, despite getting more affordable, is shrinking in size. Not everybody is willing to put a home on sale while the prices are significantly lower. So, if you are looking to invest in property now, you’ll need an experienced agent to help you get through everything that’s going on right now.
That said, is any other market in the capital shifting as dramatically? Have any of the changes actually affected the cost of living in the Smoke? Is the capital actually getting cheaper?
Let’s find out!
Let’s start with getting the elephant out of the room. We’ve already established that buying property might be a smart move right now, but what about renting one? After all, London is known for being the only city in the UK where renting a flat will cost you less than mortgage payments on it.
How is the situation with monthly rent right now?
- An 85 m2 furnished flat in an expensive area close to the center will cost you £2.479 per month.
- The same place but in a less expensive area will cost as little as £1.782.
- A 45 m2 studio with all the furniture in an expensive area is worth £1.737.
- A similar studio that’s a bit further from the center or a Tube station comes at the average price of £1.296.
Add the utilities (£160 for 85 m2, and £117 for 45 m2), the internet (£21), and a decent cleaning service into the mix (£12 per hour) to get the full picture.
Now that we’ve set the housing things straight, the time has come to actually move around the city. How much will that cost you and why?
- A single new middle-class car like a Volkswagen Golf is worth £18.836. Anything above it is purely based on your preferences and the extras in the vehicle.
- A liter of gas (1/4 gallon) is worth £1.31 or so.
- If you prefer the Tube to the busy streets of London’s traffic, a monthly pass will cost you £138.
- A single taxi trip costs an average of 13 quid.
London has always been a city of foodies with nearly 50% of its population opting out of cooking their meals at home. What can we say? Everyone’s a busy bee with no time to spare. And the prices on food aren’t as high in the Smoke.
- Your run in the mill lunchtime menu costs 11 quid and a combo meal in a place like McDonald’s is £6.
- 1 lb. of boneless chicken breast is £4.17.
- A qt. of milk costs less than one pound.
- 12 large eggs are worth £3.03.
- Local cheese has a price tag of £4.84 for 16 oz.
- Tomatoes are £2.14, potatoes are £0.86, and apples are £2.03.
- 2 liters of Coke will cost you £1.89, a bottle of wine is 10 quid, and a relatively decent beer is £1.86 per 16 oz.
What about the times when you feel that the night is young and the only thing its missing is you out there?
- Two tickets to the movies cost 26 quid or so. The theatre is a bit more expensive, as London hosts some of the most amazing shows with world-class actors. Two seats will cost you £160+.
- A dinner for two in your favorite neighborhood pub starts at £35.
- A fancier place like an Italian Restaurant raises the stakes to £66 for a dinner out for two.
- A decent pint of beer in a pub costs £5, cocktails in clubs start at £12, and a cup of coffee you’ll need in the morning starts at 3 quid.
Now that we have the stats in front of us, how do they compare?
Truth be told, not much has changed since Autumn, 2018. The rent is slightly cheaper, but the difference is barely noticeable, while everything else is approximately at the same level. London is (and will be) as stable as a mountain.
Statistics source: expatistan.com