Affordability of housing all across the UK has been a talking point for several years now and we wanted to investigate what this meant specifically for London.
How does the housing market look today? And what impact will this have on buyers and renters in the capital? Let’s take a look at the figures and the effects of them.
The State of the London Housing Market
Currently, the UK is facing the fastest fall in house prices for over 10 years, largely because of the high-interest rates mortgage borrowers have been facing. No region in the UK performed worse by this metric than the capital city, as there was a 6% contraction in the average house price here annually, amplifying the circumstances sellers face today.
Of course, London has the most expensive housing on average throughout the UK and has done so for a very long time, with the rate still averaging over half a million pounds. When compared to the rest of the UK, this might not make the price decline, which is the biggest in the city for 15 years, seem as bad on the face of it but does highlight significant volatility in the market.
Whether this is good news or bad news depends on whether you’re looking to buy or sell; if you’re looking to do both in the London area then the effects of one will likely cancel out the other.
If you’re looking to purchase a property in London, this could mean that houses haven’t been this affordable for you in quite a while. Conversely, if you’re placing your property on the market, you won’t recoup as much now as you could have done in the past few years, but we’d advise that you keep an eye on the price forecasts if it’s something you had in mind for the near future.
The Effects on Landlords and Tenants
What this could mean is that potential sellers might instead look to rent out their property for a fixed period until the housing market plateaus, for peace of mind. Advertising your property for potential tenants through Krispyhouse is easy and free of charge.
On the other hand, those looking to rent might be buoyed by the good news that mortgage rates have finally begun to fall. What does this mean for you though? Well, landlords will now have less to pay the bank back so there’s a chance that any new rental agreements could be cheaper than before.
Promoting your property, talking with prospective tenants, and using our platform as a way to show people around your home couldn’t be simpler than via our app. We understand some people live far away and others have mobility issues, so why not take the hassle out of this task?
If you’re somebody who’s looking to rent in London and doesn’t know where to start, get in touch with Krispyhouse today and we’ll help you get started.
