Would you buy a house in London today?

AndyGuil

The lack of supply will just get worse if there are market issues. Builders will reign in building as they have done before and in other places. The population is growing quickly and this is putting extra pressure on.

mobfant

AndyGuil wrote: »

The issue is a lack of supply. It isn't possible for the market to be flooded as most own for reasons other than property value yield. Rental yield is often an investment opportunity taken. Then there is most properties being ownee to live in. Why sell when everywhere else is worse.

The issue is partly a lack of supply, but it's more about sentiment, fear, and expectations of future rises. Rental yields are falling, and average rents (for a 2 bed in London) have risen by 8% in a year while house prices have risen by 28%.

http://www.londonpropertywatch.co.uk/s/ph?pc=LON&t=2b&c=p

ruggedtoast

CLAPTON wrote: »

some figures would be good

Here you go.

padington

Look at it from sellers perspective. Anyone that's sold a london property and moved just about anywhere for ten years or longer usually finds themselves excluded forever from being able to afford to trade back in to London.

Three generations have learnt if you have a foothold in London (or Brighton), never let go of it unless you are prepared to never come back.

Thats a pretty hard dynamic to challenge, especially when the city is facing a massive population increase.

Don't forget, if labour get in they may calm the sales market a little but they're also going to spike the cost of renting by introducing a raft a measures for landlords which the landlords will pass the cost on to the tenants.

So the question won't be can you afford to buy in London but can you afford to rent.

Older I get more I realise that the game we played as kids gave us all the answers - if you want to drag your boots or dog around the streets of London alot buy when you can, as soon as you can because hopping around the board paying rent is a mugs game.

AndyGuil

mobfant wrote: »

The issue is partly a lack of supply, but it's more about sentiment, fear, and expectations of future rises. Rental yields are falling, and average rents (for a 2 bed in London) have risen by 8% in a year while house prices have risen by 28%.

http://www.londonpropertywatch.co.uk/s/ph?pc=LON&t=2b&c=p

It is a lot more expensive to rent than buy in London. You can buy a bigger property for the same cost as the rent in the exact same area/street.

TickersPlaysPop

Can people when posting please quote either....

Central London
Greater London
'London' inside the M25

The stats and situations are very different in these "londons"

sebtomato

TickersPlaysPop wrote: »

Can people when posting please quote either....

Central London
Greater London
'London' inside the M25

The stats and situations are very different in these "londons"

Isn't Greater London pretty much the same as "inside the M25"?



I don't think Greater London is going through the same speculation as Central London, and that rich foreigners buy properties in Greater London.

Real local people, commuting to Central London, buy properties in Greater London, and that demand is not going to decrease any time soon. The 5% or 10% of foreign speculators will disappear once they can gamble their money elsewhere (property or otherwise) to get better returns. The high end property market in Central London is just pure speculation.

Generali

sebtomato wrote: »

Isn't Greater London pretty much the same as "inside the M25"?



I don't think Greater London is going through the same speculation as Central London, and that rich foreigners buy properties in Greater London.

Real local people, commuting to Central London, buy properties in Greater London, and that demand is not going to decrease any time soon. The 5% or 10% of foreign speculators will disappear once they can gamble their money elsewhere (property or otherwise) to get better returns. The high end property market in Central London is just pure speculation.

TBH, it wouldn't surprise me if Mr Big in Athens is buying a flat in Belgravia to hide and retain his ill-gotten gains whilst Mr Medium from Thessaloniki is buying a flat above a shop in Enfield.

No figures to support that assertion.

[Deleted User]

sebtomato wrote: »

Isn't Greater London pretty much the same as "inside the M25"?

My village is split half and half inside and outside the M25... I'm confused where I live!

I've seen the prices of house in our corner of hertfordshire rise quite fast recently (about 20% up since we moved in 2 1/2 years ago), so the bubble does seem to be expanding out of london.

It's mainly due to an increasing number of people wanting to live in an area with limited places to build new houses. Our village society has been trying to hold back developers build 170 new houses. There's a huge demand to live within commuting distance of London and no one is fulfilling the demand .. so prices go up

ladyabouttown

ringo_24601 wrote: »

My village is split half and half inside and outside the M25... I'm confused where I live!

Is your house on the central reservation!?