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There is a lot of talk about London property prices but ultimately, you need to think about how the marketing impacts on you and its relevancy to you. After all, value for money is a subjective matter and there will be many things in life that represent value for money for you that would be unsuitable for other people and vice versa. However, the gap between asking prices and actual selling price is likely to be something that causes annoyance or possible difficulties in the property market, and it is important people are aware of this matter.
The fact that the start of 2018 has seen an increase in comments and discussion of rising asking prices indicates it is becoming an issue. With one leading source stating irresponsible agents are to blame for the rise in asking prices and various industry figures highlighting the rising prices, a situation is developing where some property owners will wonder if it is worth their while placing their home on to the market.
More and more homes are selling for less than the asking price
In their end of year review for 2017, NAEA Propertymark stated that 77% of homes sold for a price that was lower than the asking price. This figure was corroborated by Zoopla who also announced a similar result. More recently, Rightmove have tried to create enthusiasm by saying that the percentage of properties that sold for the asking price was at its highest level since June of 2016 but even with this, the proportion of properties that sold for less than the asking price was in the 70s.
Given the level of competition in the property market and the need to win instructions, it is easy to see why so many estate agents promote higher asking prices to property owners. This is a strategy that works well in the short-term but there must be concerns about its suitability in the longer-term. When agents develop a reputation for stating high asking prices and deliver actual prices that are much lower than property expect or hope for, they will find it harder to find new instructions and bring in new clients.
Some property owners are deciding against selling their home
There will also be property owners who decide that the price they receive, as opposed to the price they are told they will receive, is not enough to persuade them to sell, which means they may hold off and wait for a more appropriate time. This could lower the level of supply to the market in the short-term, before the market corrects itself with higher prices, but ultimately, many property owners are left feeling frustrated, let down and perhaps even duped by high asking prices.
If you are keen to sell your home in an effective manner, rely on an estate agent with a solid reputation in the local area. At Oaks Estate Agents, we are delighted to say that we have helped many homeowners sell their property and our testimonials indicate that people are happy with the services we offer. If you want assistance from a local agent that cares, contact Oaks Estate Agents.
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There is no denying that there are many positive aspects about life in London, and no matter what is important to you, there will be something that ensures this is the city you want to live in. However, given that there are some or even many things that appeal to you about life in London, there will be reasons that appeal to other people, and therefore, there is so much demand for property in the capital. You can see from the level of foreign interest and investment in London that the English capital is where people want to be, but have you been affected by this elevated level of demand?
The fact that London Mayor Sadiq Khan has proposed a “first dibs” policy, helping residents of London to buy property is an indicator that moves are being made to limit foreign investment. If property is not being bought by people who live in or around London, there will be an opportunity for foreign buyers to purchase property but tis move could transform the market.
Foreign investors operate at all levels of London property market
Of course, there is a tendency to believe that foreign investors are only interested in high-end property, leading many to think that they haven’t really been affected by these moves. Then again, in a series of interviews where the first dibs policy was discussed, Sadiq Khan discussed the fact that foreign investors were active the more affordable region of the London property market.
There is also information provided by Kings College London, based on data from Land Registry, which suggests that foreign investment has led to a rise in property prices across the capital. This makes sense but given that so many factors influence the market, it has required thorough analysis to state this conviction with greater belief. The findings state that in the past 15 years, foreign investment has caused London property prices to increase by more than 20%.
Property prices have risen in London, but many factors may be involved
The research centred on the average price of property in 2014, utilising sold property prices from Land Registry, with this figure listed as £215,000. A comparison was made with prices from 1999, with these prices listed as £70,000. The report then suggests that without the support of foreign investment, the average price of property in 2014 would have been listed as £174,000 and the difference between the actual and expected figure was the difference that could be attributed to foreign investment.
With this study suggesting that the average price of property in London has risen by £46,000 because of foreign investment, it is likely that some people will not be pleased at the level of influence this style of investment has had on the market. Of course, not every area of London is affected or feted in the same way, with most people associating areas like Kensington or Chelsea as the locations you will find the strongest level of foreign investment in the capital.
There is no denying that foreign investment has led to property prices in London rising, but it is far from the only factor. A wide range of influences have shaped the London market and ultimately, it is not as if anything can be done to change what has happened. The fact that there is now an open debate about finding ways to help local people obtain property will be welcome by some, but no matter the situation, the London property market will remain the leading component of the UK property market.
If you are looking for information and guidance that is tailored to your needs and requirements, come and speak with Oaks Estate Agents. We may not be the estate agents that brokers high-end property deals for major investors, but we are the estate agents that make a difference in Streatham and surrounding areas. If this is an area of London you have an interest in, with respect to buying, selling or letting, get in touch and we will be happy to assist you.
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Renting in London is a necessity for many people and even though this may be the more prudent financial option for many people and households in the capital, this is not to say that renting is cheap or affordable. Even in an area like Streatham, which is recognised for offering value for money with respect to the property and rental market, the cost of moving here can be expensive. There are many costs associated with moving and the topic of rental deposits are hotly debated. If you are keen to move to Streatham as a tenant, how much of a deposit can you afford?
Assistance is likely to be on the way with a deposit cap being implemented but so far, there is no agreement or clarity on what the cap will be. Some of the most relevant opinions on what the deposit cap should be set at include:
- The Government is said to a six-week cap for rental deposits
- Landlord groups have publicly backed a six-week cap for rental deposits
- The Housing, Communities and Local Government Committee recommends a five-week cap for deposits
Each group has a valid point and can justify their stance, so it is not as if anyone is making an outlandish claim in this regard. However, there is a need for clarity in the rental market and there is a need to accept that many people are unable to afford the associated costs of renting.
Renting in London is expensive for many people
Rental fees are high in London, this is an accepted fact. According to the home.co.uk website, the average rent in London stands at £2,959 per calendar month, which amounts to £682.85 per week. The following figures detail how much a tenant would have to pay as a deposit going by the London average:
- A four-week cap creates an average deposit of £2,731.40
- A five-week cap creates an average deposit of £3,414.25
- A six-week cap creates an average deposit of £4,097.10
- A seven-week cap creates an average deposit of £4,779.95
However, it is not always best to take the London average as your starting point. At Oaks Estate Agents, we know that Streatham offers more affordable rental options than the London average, and the amount of money required to pay for a capped deposit in this part of the capital would be lower than the average.
Streatham is a more affordable option in the capital
From the same source, the average rent for Streatham comes in at £1,569 per calendar month, which breaks down to £362 per week. With respect to how much would be required for a capped deposit, the following table provides the outcomes:
- A four-week cap creates an average deposit of £1,448
- A five-week cap creates an average deposit of £1,810
- A six-week cap creates an average deposit of £2,172
- A seven-week cap creates an average deposit of £2,534
While these figures are considerably more affordable than the equivalent figures for the London average, it is up to each household or individual to determine what is an affordable deposit for them to pay.
Bearing in mind this deposit will often come alongside the first months’ rent, removal costs and any other fees you may have to pay, the amount of money required to move into rental accommodation very quickly adds up.
Not only does this mean that tenants need to be prepared financially before moving into rental accommodation, it is vital that they find the best possible home for their needs. There may be times when time is of the essence but given the associated costs of moving, it would be preferable if a tenant finds accommodation where they would be happy to stay for longer if given the opportunity. Not only would this offer consistency, it could lower the amount of money a tenant needs to find for a property over the long-term.
At Oaks Estate Agents, we understand the pressure that prospective tenants and landlords are under. We are keen to provide as much guidance and support as possible and if you are looking for assistance from a Streatham property specialist, we look forward to hearing from you and helping you soon.
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You don’t need us to tell you that buying and selling property in London can be highly challenging these days. Even with a greater level of demand than supply, selling a home isn’t as straightforward as many people would like. One of the reasons why so many people struggle to sell their home efficiently is because homeowners are moving less often these days. At Oaks Estate Agents, we appreciate this causes difficulties for homeowners looking to move on, but we believe we can improve your chances of selling your home, even in an era when people move less.
While most specialists and market observers can provide anecdotal evidence about property owners moving less often, figures provided by Savills for BBC News confirms this. Prior to the 2008 market crash, property owners moved 3.6 times. Nowadays, this has fallen to 1.8 times. Property owners are moving at half the rate they used to, which is terrible news if you are looking to sell your home.
Property owners may have concerns about selling their property
In fact, this is negative news for a lot of people and industries. You can guarantee that removal companies have struggled in the current climate and mortgage lenders, already under increasing pressure to select more dependable clients, will have fewer applications and requests to contend with than in previous decades. However, at Oaks Estate Agents, we are focused on meeting the needs of our clients and given that many of our clients want to sell their home, we are here to assist you.
Even though selling your home can be a daunting process, there are steps you can take to improve your chances of selling your home. You need to be proactive in your efforts and without promoting ourselves too highly, one of the most important tasks you can undertake in selling your home is to call on the services of a skilled and experienced local estate agent.
Local knowledge is essential in the property market
An agent with local knowledge has a greater understanding of average property prices, of how your property relates to the average property in the area, of who is most likely to buy your home and how these people can be reached. With a local estate agent, it is far more likely that you will price your home effectively and promote to the prospective buyer, which gives you a much-improved chance of selling your home. After all, property owners are moving less often than they used to, but they are still moving and there are still new homeowners stepping on to the property ladder, so you can sell your home.
Some simple tips to bear in mind when it comes to selling your property include:
- Clean the property to the highest possible standard, hiring a professional cleaning firm if you must
- Declutter the property to create more space
- Declutter the property to remove personal belongings, helping the buyer to imagine themselves in your home
- Promote the property with a high quality of images and video content
- Present the outside of the home with as much care and attention as the inside
- Ensure that every room in the property has a clearly defined purpose that appeals to the buyer
It is correct to say that property owners are moving home less often these days, but this shouldn’t prevent you from selling your home. If you would like the best standard of support and guidance in selling property in Streatham and surrounding areas, get in touch and we will be happy to help.
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Buying a home is challenging and there are many obstacles for property buyers to overcome.
For most buyers though, the mortgage process is the most difficult. The most effective way to obtain a mortgage is to have a sizable deposit, but it is understandable why so many people struggle to save sufficient funds.
However, the larger the deposit, the more likely it is that a prospective buyer will obtain a good mortgage or receive a better mortgage offer. At Oaks Estate Agents, we know the importance of obtaining a mortgage, and we are here to help if you need assistance in this matter.
With so many people looking for positive news and optimism in the property market, it is understandable that an increase in mortgage approvals will be seen as a positive sign in the market. In figures provided by UK Finance, the number of mortgage approvals for the UK in January of 2018 stood at 40,117. This is an increase from the 36,085 approvals that were listed for December of 2017.
January isn’t the best month of the year in the property market
You may think that January is a slow time of year for major purchases, so this figure is likely to provide people with optimism and positivity surrounding the market. It would be wrong to get carried away though, as there are still factors that suggest the property market is enduring a challenging time in the UK.
While an increase in mortgage approvals doesn’t necessarily lead to a rise in property purchases, it is easy to see why there could be a correlation. After all, the mortgage is often the most challenging aspect in buying a home, so with a mortgage approval in place, most buyers will feel confident about their next move. However, there are assorted reasons why someone with a mortgage in place fails to conclude a property deal, and not all of them are their fault. This means it is best to take this news with caution but if first-time buyers see that mortgage approvals are on the rise, many will decide to take more action in the market.
Help is available for first-time buyers
Although the removal of stamp duty for first-time buyers purchasing property priced at less than £300,000 isn’t much benefit in London, there is likely to be more positivity surrounding first-time buyers in the market. There is an acknowledgement that it is difficult to buy property and more help is being offered, even from mortgage lenders. Therefore, first-time buyers should take the time to register an interest in property and mortgages, because there may be more assistance on offer than they first imagined.
If you are considering applying for a mortgage and you would like some guidance or assistance, get in touch with Oaks Estate Agents. We are delighted to say that we have helped many people make a move in the property market and we are keen to assist you if we can.