Want To Buy A Property with Our London Relocation Services in London?

One of the biggest questions we always continue to get is how Brexit impacts the London property market. One of the answers is it’s actually not been so great over the last 12 months.

Through May 2019, there’s been a two-and-a-half percent overall decline in London property prices to an average asking price of £621,000. In the hardest-hit areas, which are prime central London, we’ve seen Westminster have the largest decline of 6.3% with an average asking price of £1.4 million. Kensington and Chelsea, which has the highest property values in all of the UK, have seen an average price decline of 3.9% to an average asking price of £1.6M. Outer London, which has continued to benefit from large swathes of land where you can redevelop and regenerate and create whole new housing developments, has actually seen a 0.9% average increase to an average asking price of £521,000. There really are only two areas that haven’t seen price reductions, and those are in Bexley and in Barking and Dagenham on the outer skirts of London. That’s really not surprising, considering that they are some of London’s cheapest boroughs. Average asking prices there are £406,000 and £316,000, respectively.

London property price declines are actually particularly stark compared to other parts of the UK, such as Wales and the Midlands, which are actually seeing average price increases. Everybody focuses a lot on Brexit, but one of the other critical factors that have impacted the London property market has been the stamp duty changes that started back in December 2014, with additional increases in April of 2016 and then also interest expense reductions that have really impacted buy-to-let mortgages. So it’s been a series of government-induced things that have impacted the market and made the transaction volumes decline over the last 12 to 36 months.

As far as transaction volume through April, we had 85,000+ transactions in London, which is a 26% decline in average transactions compared to before the EU referendum in June of 2016 and a 4.6% decline annually. In Prime Central London we’ve seen a decline of 16% this is to 3,295 transactions. What does that mean for the average buyer or seller? It definitely means that at the end of the day, people still need to buy and sell their homes for whatever reasons; it might not be a great time to sell just for the whim of it or to get top dollar, but if you need to sell for personal reasons, I’m actually working with first-time buyers who are looking in Bexley, we’ve actually found them a great first family home that’s being sold by a couple that’s divorcing, so in that situation they have to sell and really don’t have a choice. In another situation, I have sellers who are selling because they’re looking to up-size and in that situation, while they might not get their original asking price for their current family home, it does mean that when they do sell, they’re going to be in a great position as a buyer to buy that next family home, so we want to make sure we look at that entire picture.

The London housing market is competitive. Demand often outstrips supply, driving up prices. Factors like Brexit and economic changes can influence the market. But don’t worry, London Relocation Agents are here to help you navigate these complexities. It’s crucial to understand the fast-paced nature of this market. Properties can be snapped up quickly, so being prepared and having a clear strategy is essential. London’s market dynamics are influenced by both local and international buyers, adding layers of complexity to the buying process.

Several factors influence property prices in London. Proximity to transportation hubs, schools, and amenities play a significant role. Popular neighborhoods like Shoreditch and Kensington have their unique charm and price points. For instance, being near a tube station can significantly increase a property’s value. School catchment areas are also highly sought after, particularly for families. Areas with parks, shopping districts, and cultural attractions tend to command higher prices due to the lifestyle they offer.

Staying updated with market trends is crucial. Prices have fluctuated over the years due to various factors. However, London’s appeal as a global city remains strong, making it a worthwhile investment. Recent trends show a growing interest in suburban areas as remote work becomes more common. Additionally, sustainable and energy-efficient homes are gaining popularity. Keeping an eye on these trends can help you make informed decisions about where and what to buy.

Other things to consider would be the transport links in the area. You also could consider looking for commercial opportunities rather than residential ones. You could invest in some office space or some warehousing or maybe some shops. The cost per square meter can be considerably less than the same cost per square meter on a residential-type property. Or better yet, could you maybe convert a commercial property into residential one? There are some real advantages to this type of strategy, such as maybe converting a shop into residential. There are some planning and some tax advantages these include dat and stamp duty. For those ideas, you will want to speak to an accountant to confirm your ideas are plausible.