Not a day goes by without reading something in the news about how house prices in London are rocketing. Every month the average price goes up, and there seems to be no end in sight. Which begs the question: who exactly can afford to live here?
Average London Property Prices
New highs are being reached all the time in the London property market. RightMove states that last year the average prices were:
- Terraced properties: £595,166
- Flats: £456,323
- Semi-detached properties: £564,658
It also claims that:
- The overall average price for properties in London was £532,455
- Central London was the most expensive area at £1,484,895
- East London was the cheapest area at £363,250
- In 2014, prices were up 8 per cent on 2013, and up 22 per cent on 2012
Problems for ‘Endies’ & Young Professionals
So what do these high prices mean for people who want to live in London? There have been many reports in the press of people experiencing difficulties. One of these groups of London residents has been named ‘Endies’, which stands for ‘Employed But No Disposable Income Or Savings’.
Apparently there are a lot of them in London – as many as one-in-five Londoners – and they are the people whose incomes cover the cost of living but nothing else. They want to stay in London for many reasons, including the excitement and the better job opportunities, but it is very difficult for them to buy a property.
According to Ham & High Property, even junior doctors are experiencing difficulties living in London even though they earn in the region of £50,000 a year. This has led to a fear of ‘brain drain’ from the capital with people going to London to train and learn their craft, but then leave the City to work elsewhere.
One group buying a lot of properties is investors. There are some great opportunities to be had for those who can afford a property, and The Telegraph reports that prices are set to go up 30 per cent over the next five years. So if you can afford a property here, there could be lots of money to be made.
Not Just for the Super Rich
But that doesn’t mean London is only for rich people. Many who bought property in London a few years ago have seen their homes shoot up in value, and there are lots of people living in London in their own properties who would not be classed as super rich.
If you can sell your current property for a large enough sum to buy a property in London, this is another option. You may have to downsize slightly due to the higher prices in the capital, but the benefits of living in London could make this worthwhile.
Then again, you could always live outside of the capital. Another Telegraph article highlighted the benefits, and savings to be enjoyed of living just outside London. If you live just one hour by train outside, the paper claims you could get a house for 60 per cent less.
Find Your Perfect London Property
If you’re in a situation where you want to buy a property in London, I would love to help you find your dream home. Whatever your situation, whether you are selling your current property or you have money saved away, one thing you will need is someone who can help you find the right property at the right price – and that is exactly what I can do for you.
Call Richard Mottley on 0800 999 5758 or 07769 32 5758 for further information or submit an enquiry here: http://sanderlinghomesearch.com/contact