Have we seen London’s 10-15 year peak?

jonnygee2

There are a lot of people waiting to buy who can just about to afford a house. And mortgage rates are low, employment high. If prices go down a bit, more people will want to buy. They might fall a little, therefore, but not by much before an equilibrium is found.

So long as there's demand prices will remain about stable. I do think we've probably hit a 5 year peak though - as people just can't afford much more - but I think we are probably talking 2-3 years of below inflation rises, rather than some sort of crash.

michaels

How long do you intend to hold the property? How does the rental cost of an equivalent property over that period compare to the interest cost of the mortgage and deposit? How much do you anticipate spending on bills and insurance if you buy that you wouldn't if you rent. How much are your purchase costs including stamp duty compared to any rental arrangement fees, how often would you expect to have to change rental.

This will give you an idea of how costs compare if house prices are flat and you can then put on different assumptions on hpi and decide if it makes sense.