4 London Property Predictions for 2018
1. London Prices to Fall by 2%
Property website Rightmove forecasts another tough year for many of those looking to sell in 2018. An average 2% drop in new seller asking prices in 2018 is predicted, though the lower and middle sectors of the market will continue to outperform the upper tier of property. The drop is mainly driven by tumbling prices in expensive boroughs such as Kensington and Chelsea or Westminster, where the high average house prices of £1,246,683 and £971,478 respectively leave no room for growth.
2. Opportunities for Landlords
The extra financial burden brought on by legislation is unlikely to let up in 2018. 20% of landlords have said they intend to sell in the next few years. (Direct Line for Business.) Investors could strike a good deal for a quick purchase, (long term landlords are unlikely to have an outstanding mortgage on their rental properties). Plus the property will be in ready-to-rent condition and could come with a sitting tenant, meaning instant income.
3. First Time Buyer Power
Following the budget announcement of potentially large stamp duty savings, buyers’ purchasing power in the first-time buyer sector has been enhanced. This – together with an increase in demand - has created small price increases within the First Time Buyer sector. As a result, new seller asking prices in this sector will edge closer to recovery with a 1% fall compared to -2.0% this year, (Rightmove).
4. Buy To Let
With a continuing shortage of good-quality rental accommodation in most areas, plus a growing demand, landlords with viable investments should be encouraged that Buy To Let is still likely to deliver a positive long-term investment proposition.
“The London property market is more stable than many people think – and offers some opportunities is the sales and rental sectors,” says Jason Dyer of JTM Homes, which specialises in helping people to buy, sell and let properties across north London. “Our team understands the local London property market thoroughly. If you would like to know how your property or plans could be affected by our property predictions, please pop in for a chat. We’re here to help.”