Friday, 25 August 2023

Landlords in South London Twice as Likely to Sell. Opportunity?

The housing market for landlords is becoming increasingly challenging, as more landlords are selling properties than buying them. A new report from research consultancy BVA-BDRC reveals that, in Q2 2023, over one in ten (12%) of landlords in England and Wales sold properties. In contrast, only 5% purchased properties during this same period.


This trend is being driven by a number of factors, including the rising cost of living, the increase in interest rates, and the uncertainty caused by the war in Ukraine. The rising cost of living is making it more difficult for landlords to cover their costs, while the increase in interest rates is making it more expensive to borrow money. The war in Ukraine is also causing uncertainty in the global economy, which is making landlords less confident about the future. Things that are certain are increased taxation, regulation and rents. Room for more profit then?



The increasing regulation of the private rental sector is a factor that is making it more difficult for landlords. The government has introduced a number of new regulations in recent years, which have increased the costs and responsibilities of landlords. These regulations include the introduction of a minimum energy efficiency standard for rented properties, the ban on letting fees, and the requirement for landlords to carry out safety checks on their properties.


The challenges facing landlords are likely to continue in the coming months. The rising cost of living and the increase in interest rates are expected to continue, and the war in Ukraine is likely to remain a source of uncertainty. As a result, it is likely that more landlords will sell properties or cut back on the number of properties they let.


This trend is having a number of implications for the housing market. First, it is leading to a decrease in the supply of rental properties. This is making it more difficult for people to find a rental property, and is pushing up rents. Second, it is leading to a decrease in the number of landlords. This is reducing the competition in the rental market, and is making it easier for landlords to raise rents.


The challenges facing landlords are likely to have a significant impact on the housing market in the coming months. It is important for both landlords and tenants to be aware of these challenges and to plan accordingly.


It is difficult to predict how the housing market for landlords will develop in the coming months. However, it is clear that the challenges facing landlords are likely to continue. Landlords should be prepared for further challenges, including rising costs and increased regulation. Hopefully rents will keep rising to make a fair risk vs reward ratio! If you need help balancing up the numbers on a particular property you are looking at then do get in touch - I can help you crunch the numbers on your next investment for sure!

Thursday, 24 August 2023

Fewer Buyers in the South London Market, but Sellers Undeterred

The housing market in the UK is showing signs of cooling, as the number of buyers in the market decreases. However, sellers are still reluctant to reduce their asking prices, leading to a mismatch between supply and demand. Yes indeed, Londoners are among the most STUBBORN of home sellers when it comes to the value of their home. The property is only worth what someone is willing to pay for it AT THAT POINT IN TIME. I've been doing this for 20 years and trust me when I say that willing it to be worth more does not make it so...


Chestertons event reported that the number of buyers registering with the agency fell by 3% in July compared to June. The number of properties for sale also fell by 1%. The average time it took to sell a property in London was 52 days, which is up from 47 days in June. Quicker than the national average, mind.


Matthew Pointing, Chestertons' head of research, said that the housing market is "showing signs of cooling" but that sellers are "still holding out for strong prices. The combination of rising inflation, interest rates and the ongoing uncertainty in the global economy is starting to weigh on buyer sentiment," he said.


Pointing said that he expects the housing market to remain competitive in the coming months, but that there could be some "modest price falls" in some areas. The factors that are driving the slowdown in the housing market include the rising cost of living, the increase in interest rates, and the uncertainty caused by the war in Ukraine. The rising cost of living is making it more difficult for people to afford to buy a home, while the increase in interest rates is making mortgages more expensive. The war in Ukraine is also causing uncertainty in the global economy, which is making people less likely to make major financial decisions, such as buying a home.


Despite the slowdown, the housing market in London remains strong. The average asking price for a property in London is now £650,000, which is up 10% from last year. This is due to the limited supply of housing in London and the strong demand from both domestic and international buyers.


It remains to be seen how the housing market will develop in the coming months. However, it is likely that the market will remain competitive, as sellers are unlikely to drop their asking prices. They will simply have to cope with a slower sale, or no sale at all as research shows that only HALF of properties listed ever get sold. Let that sink in...


If you are looking to sell then don't be dazzled by high asking prices and low fees - be realistic and understand that you may have to take a bit of a haircut to get moving. Remember that moving up the ladder this is entirely to your benefit. Losing 10% of £500k and winning 10% of £1m is a net positive!


If you are after a realistic, actual valuation of your home then do drop me a line.

Wednesday, 23 August 2023

South London Mortgage War Sparked by Economic News

There is a possibility of a mortgage war in the UK, triggered by improving economic news. A mortgage war is when lenders compete for borrowers by offering lower interest rates and other incentives. Sounds like a war I'd love to be in!

Here are the factors currently at play that is causing increased competition between lenders (and let's jubilate as they drop their rates):

  • The Bank of England's recent decision to raise interest rates, which is expected to put upward pressure on mortgage rates.
  • The government's plan to extend the mortgage guarantee scheme, which could make it easier for borrowers to get a mortgage.
  • The improving economic outlook, which could lead to more people feeling confident about taking on debt.


If, sadly, not when, a mortgage war does occur, it could have a number of implications for South London homeowners.


  • Homeowners could benefit from lower interest rates, which could make their monthly payments more affordable.
  • Homeowners could also have more options when it comes to choosing a mortgage, as lenders compete for their business. Hopefully it will reduce red tape that a borrower needs to go through to secure a home loan.
  • However, a mortgage war could also lead to increased competition for properties, which could push up house prices. Cheaper borrowing means increased affordability...

Overall, the impact of a mortgage war on South London homeowners is uncertain. However, it is something that homeowners should be aware of, as it could have a significant impact on their finances.





Here are some additional things to consider:

If you are a South London homeowner, it is important to stay up-to-date on the latest mortgage news. You can do this by reading industry publications, following mortgage experts on social media, and talking to your mortgage lender. However I'm sure you have better things to do, so keep an eye out when your mortgage deal is coming to an end. Any time before that the information will be largely irrelevant and things are set to change anyway.

If you are considering remortgaging, it is important to shop around and compare interest rates from different lenders. You can use a mortgage comparison website to do this or consult a broker to do the leg work for you.

It is also important to make sure that you can afford the monthly payments on your new mortgage. You should use a mortgage affordability calculator to do this.


If you need my thoughts on your buy to let property or even the value of your own home be sure to drop me an email to see if I can help.

 

Tuesday, 22 August 2023

Asking Rents Peak - here's what that means for South London Landlords

According to a new report from Rightmove, asking rents in England and Wales have hit a new record high of £1,162 per calendar month. This is up 10.8% from last year, and is the highest level since Rightmove began tracking asking rents in 2008.

According to Rightmove, the average asking rent in South London is £1,323 per calendar month. This is up 9.8% from last year, and is the highest level since Rightmove began tracking asking rents in 2008. The average asking rent varies depending on the specific area of South London. For example, the average asking rent in Lambeth is £1,435 per calendar month, while the average asking rent in Croydon is £1,223 per calendar month.






The high level of asking rents in South London is due to a number of factors, including the strong demand for housing in the area, the limited supply of housing, and the rising cost of living. The report also found that the number of properties available to rent has fallen to a record low of 29,000, which is 40% lower than the same time last year. This is due to a number of factors, including the ongoing shortage of housing supply, the rising cost of living, and the increase in remote working.


What it means if you are letting...

  • Make sure that you are on a sensible mortgage rate. If you are on your standard variable and you have no plans to sell up see if there is a simple product switch you can do to benefit from a lower rate and increase your monthly profit margin.
  • That said, make sure that you are not running a charity! Increase your rents to market rent. "the tenant is good and pays on time" is great, but it's better if they pay a market rent so that you can get a good return from your investment. If you had stocks and shares invested you would want your dividends, not sending them back to the CEO to enjoy in Barbados.
  • Ensure you are offering value. If you are having a tenant switchover make sure that your furniture is tip top, any repairs are done (reported or not) and the place is pristine for the new tenants to take over. Having a property in A* condition is a lot easier to manage and maintain for you and tenants alike because you can all agree it was tip top to start with.

Looking for more letting advice? Drop me a line and see if I can help you. Curious to see what your property is worth? I have an AI-driven tool on my website that can give you a rough estimation. Beware, it's not replacing me just yet so for an accurate appraisal be sure to reach out!


Monday, 21 August 2023

Is Now The Time To Be Investing in South London HMOs?

An HMO, or House in Multiple Occupation, is a property rented out to three or more unrelated people who share facilities such as a kitchen and bathroom. Investing in HMO properties can be a good way to generate a high rental income, but it also comes with some risks. Lots of onerous regulations make up lots of trip hazards, so read further to see if it's for you!


Pros of investing in HMO properties:

  • Potential for higher rental income: HMOs can generate more rental income than traditional buy-to-let properties because you can rent out multiple rooms.
  • Diversification: Investing in HMOs can help you diversify your property portfolio and reduce your risk.
  • Demand: There is a growing demand for HMOs, particularly in urban areas where there is a shortage of affordable housing.
  • Flexibility: HMOs can be a flexible investment, as you can rent out the rooms individually or as a whole property.



Cons of investing in HMO properties:

  • Increased management: HMOs require more management than traditional buy-to-let properties, as you need to find and screen tenants, collect rent, and deal with any disputes.
  • Regulatory compliance: HMOs are subject to more regulation than traditional buy-to-let properties, so you need to make sure you comply with all the relevant laws and regulations.
  • Risk of damage: HMOs are more likely to be damaged than traditional buy-to-let properties, as there are more people living in the property.
  • Tenant turnover: HMOs typically have a higher tenant turnover than traditional buy-to-let properties, so you need to be prepared for the hassle of finding new tenants.

Overall, investing in HMO properties can be a good way to generate a high rental income, but it's important to weigh the pros and cons carefully before making an investment. In days gone by letting a property to a group of sharers was the most common thing in the world, and there wasn't all the extra regulation to deal with. There is certainly more to it nowadays. Whether you are renting out the property on one tenancy agreement or many agreements (by the room generally) the same rules will apply for fire safety, licensing and so on.

If you are looking at an investment property and would like a professional to glance it over to see what rent it would fetch then drop me a line, I'd be happy to help!

Tuesday, 15 August 2023

Landlord Duo Ordered to Pay Tenants £12,500 for Failing to Licence Property - Are you complying?

A landlord duo in London have been ordered to pay their tenants £12,500 after it was discovered that they had failed to licence their property under a selective licensing scheme.


The tenants, Amanda and Miroslav Jesensky, rented the property in East London for nearly ten years. During that time, two successive selective licensing schemes were in operation in the area. The schemes were promoted by the council via advertising, mail-shots, and information on the council's website.


The landlords, Mohammed and Ghazala Butt, claimed that they were not aware of the licensing schemes and that the council had failed to inform them of their duty to licence the property. However, the judges at the Property Tribunal hearing rejected this argument, stating that "ignorance of the law is no defence" in cases of rent repayment orders.


The judges also pointed out that "becoming a landlord is a serious undertaking" and that landlords have a responsibility to familiarize themselves with the legal requirements to which they are subject. They added that landlords "are not entitled to keep quiet and wait until the local authority catches up with them."


The Jesenskys' original claim was for nearly £16,000, but this was reduced to £12,500 by the judges. The landlords were also given until August 10th to appeal the decision. This case serves as a reminder to all landlords that they have a responsibility to comply with the law. If you are unsure about whether your property is required to be licensed, you should contact your local council for more information.


What does this mean for landlords?


  • This case sends a clear message to landlords that they must be aware of the legal requirements that apply to them. If you fail to comply with the law, you could be ordered to pay your tenants compensation, as well as legal fees.

  • It is therefore important to make sure that you are familiar with the relevant legislation and that you take steps to comply with it. You should also keep records of your compliance, so that you can prove to the council that you have met your obligations.

  • If you are unsure about whether your property is required to be licensed, you should contact your local council for more information. They will be able to advise you on the specific requirements that apply in your area.



How can I protect myself as a landlord?


There are a number of things that you can do to protect yourself as a landlord:


  • Make sure that you are familiar with the relevant legislation and that you take steps to comply with it.
  • Keep records of your compliance.
  • Contact your local council for advice on the specific requirements that apply in your area.
  • Use a letting agent who is familiar with the law and who can help you to comply with the requirements.
  • Get professional advice from a property professional if you are unsure about anything.

By taking these steps, you can help to protect yourself from being ordered to pay compensation to your tenants. If you have any questions feel free to drop me a line and I can tell you all about licensing in your local area!

Monday, 14 August 2023

Clapham Landlords Face Outrageously High Right-to-Rent Fines

The government has announced that it will be increasing the fines for breaches of the right-to-rent rules. This is likely to have a significant impact on South London landlords, as the area is home to a large number of rented properties.


The right-to-rent rules require landlords to check the immigration status of their tenants before renting to them. If a landlord rents to someone who does not have the right to rent in the UK, they could be fined. The current fines for breaches of the right-to-rent rules are relatively low, but they are about to increase significantly.


For a first offence, the fine for a lodger landlord will increase from £80 to £5,000. For a repeat offence, the fine will increase from £500 to £10,000. For ordinary residential landlords, the fine for a first offence will increase from £1,000 to £10,000. For a repeat offence, the fine will increase from £3,000 to £20,000.


These increased fines are likely to have a number of negative impacts on South London landlords. Firstly, they could make it more difficult for landlords to rent out their properties. Landlords may be reluctant to rent to tenants if they are not confident that they can check their immigration status correctly. This could lead to a decrease in the availability of rented properties in South London, which could drive up rents.


Secondly, the increased fines could put some landlords out of business. Landlords who are already struggling financially may not be able to afford to pay the fines. This could lead to them being forced to sell their properties, which could further reduce the availability of rented housing in South London.


Thirdly, the increased fines could lead to landlords discriminating against certain groups of tenants. Landlords may be more likely to rent to tenants who they believe are less likely to be illegal immigrants. This could lead to discrimination against people from certain ethnic groups or countries.



The increase in right-to-rent fines is a significant development that is likely to have a major impact on South London landlords. It is important for landlords to be aware of the new rules and to take steps to ensure that they are compliant. They should also be aware of the potential negative impacts of the new rules and to take steps to mitigate them.


In addition to the above, here are some specific things that South London landlords can do to prepare for the increase in right-to-rent fines:


  • Make sure they understand the new rules and how they apply to their properties.
  • Get professional advice on how to check the immigration status of their tenants correctly.
  • Put in place systems and processes to ensure that they are compliant with the rules.
  • Be prepared to pay the fines if they do breach the rules.

 

The increase in right-to-rent fines is a challenge for South London landlords, but it is one that they can overcome with careful planning and preparation. Do you need help with your compliance when it comes to letting your property? Drop me a line and let's talk legal to make sure you're compliant!

Friday, 11 August 2023

South London Rental Market Shrinking!

The South London rental market has been significantly affected by the decline in the number of rental homes. According to CBRE, the number of rental homes in South London has fallen by 100,000 in the past seven years. This is due to a number of factors, including:


  • The introduction of an additional rate of stamp duty for second properties in 2016, which increased the upfront cost of buying a rental property.
  • The increase in property prices in South London, which has made it more difficult for landlords to afford to buy rental properties.
  • The rise in the cost of living, which has put pressure on landlords' profits.
  • As a result of the decline in the number of rental homes, competition for rental properties in South London has increased, driving up rents. This has made it more difficult for people to find affordable housing in the area. As you may know prices have SKYROCKETED with some landlords able to achieve 50% more rent than 24 months ago!





Source: Property Industry Eye


In addition to the decline in the number of rental homes, the South London rental market is also facing other challenges, such as:

  • The lack of government support for landlords. The onerous legislation keeps piling on!
  • The rise in the number of buy-to-let investors, who are often more interested in making a profit than providing affordable housing.
  • These challenges are likely to continue to make it difficult for people to find affordable housing in South London in the coming years.

So affordable housing is out the window for tenants, but this is merely a passing on of costs by landlords. How do you foresee this playing out? There isn't a significant profit margin, certainly no greater than there was before. Your thoughts are welcomed, what are you doing going forward?

Thursday, 10 August 2023

South London Homeowners Bracing for ULEZ Attack

As you know homeowners with older vehicles are facing higher costs. The ULEZ charges £12.50 per day for vehicles that do not meet the emissions standards. This is a significant cost for homeowners who rely on their cars to get around. South London homeowners who live in the ULEZ are facing a loss in property value. According to a recent study, homes in the ULEZ are worth an average of £10,000 less than homes outside the zone. This is because buyers are less likely to want to live in an area where they have to pay extra to drive their cars! Not surprising of course.

Wait for it, combining ULEZ and recent tenant legislation - you can see where it's going, before you know it landlords who rent out properties in the ULEZ will be responsible for paying the ULEZ charge for their tenants' vehicles!

Overall the ULEZ is having a negative impact on South London homeowners. The higher costs, loss in property value, and additional rental costs are making it difficult for homeowners to afford to live in the area.



  • Homeowners are being forced to replace their older vehicles with newer, more expensive models. This is a significant financial burden for many homeowners, especially those on a fixed income.
  • Homeowners are having to find alternative ways to get around, such as public transportation or cycling. This can be time-consuming and inconvenient, especially for those who live in rural areas.
  • Homeowners are feeling less confident about the future of their property values. The ULEZ is one of a number of factors that are making it difficult to predict how property prices in South London will perform in the coming years.

With all these points in mind, where is your next property going to be, inside or outside the ULEZ? Check your property's current value using my online valuation tool or invite me around for a more detailed appraisal!

Wednesday, 9 August 2023

Interest Rates Hit Highest Level Since 2008: What Does This Mean for Homeowners in South London?

The Bank of England has raised interest rates to their highest level since April 2008, in an effort to cool the UK's rising inflation. This is likely to have a significant impact on homeowners in South London, who are already facing rising property prices and rents.


The impact of higher interest rates will vary depending on individual circumstances. However, in general, homeowners with variable rate mortgages will see their monthly payments increase. This could put a strain on household budgets, particularly for those who are already struggling to make ends meet.



Homeowners with fixed rate mortgages will not see their monthly payments increase immediately. However, they will be locked into their current interest rate for the duration of their mortgage term. If interest rates continue to rise, this could mean that they will be beating the rate that variable rate customers are paying - but for how long? When they come off their fixed rate, and many are going to do just this in the next 12 months - they will be in for a trebling of their mortgage payments!


The rise in interest rates is having a negative impact on the housing market. It is already leading to a slowdown in house price growth, as buyers become more cautious about making large purchases. It is making it more difficult for first-time buyers to get onto the property ladder.


For homeowners in South London, the rise in interest rates is a double whammy. Not only are they facing higher mortgage payments, but they are also likely to see their property value decrease. This could make it difficult for them to sell their home if they need to move. Or at least, at a price they had in mind (last year's price)!


There are a number of things that homeowners can do to protect themselves from the impact of higher interest rates. These include:

  • Reducing their monthly outgoings: This could involve cutting back on unnecessary spending or increasing their income.
  • Refinancing their mortgage: This could involve switching to a fixed rate mortgage, which would protect them from future interest rate rises.
  • Building up an emergency fund: This would give them a buffer to fall back on if they experience financial difficulties.
  • The rise in interest rates is a challenging time for homeowners. However, by taking steps to protect themselves, they can minimize the impact on their finances.


In addition to the points mentioned above, here are some other things that homeowners in South London can do to prepare for higher interest rates:


  • Get a professional valuation: This will give you an idea of how much your property is worth, which will be important if you need to sell in the future.
  • Keep an eye on the market: Monitor property prices and interest rates so that you can make informed decisions about your finances.
  • Talk to your mortgage lender: If you are struggling to make your mortgage payments, talk to your lender as soon as possible. They may be able to offer you some help or advice.

Are you interested in the value of your property? If you are curious as to what your rental property is worth today why not drop me a line and pick my brains or use my free online valuation tool to get a ballpark figure!


Tuesday, 8 August 2023

The Government's 1 Million New Homes Target: What Does it Mean for Homeowners in South London?

The UK government has set a target of building 1 million new homes by 2025. This is a ambitious target, and it's not clear yet how the government will achieve it. However, there are a number of things that the government could do to help boost housing supply in South London.


One option is to focus on brownfield development. Brownfield sites are previously developed land that has been left vacant. They often have planning permission already in place, which can speed up the development process. There are a number of brownfield sites in South London that could be suitable for new housing development.


Another option is to increase the density of housing in South London. This could be done by building taller buildings or by building more homes on smaller plots of land. Increasing density would allow the government to build more homes on the same amount of land.


The government could also make it easier for developers to build new homes. This could include streamlining the planning process, reducing the cost of development, and providing financial incentives to developers. It's called "building control" currently but really it should be called the "building enablement department!"



Of course, there are also a number of challenges that the government will need to overcome if it wants to hit its 1 million new homes target. These challenges include the high cost of land, the shortage of skilled labor, and the opposition of some local residents to new housing development.


Despite these challenges, the government's 1 million new homes target is an important one. South London is already one of the most densely populated areas in the UK, and there is a growing demand for housing in the area. If the government is able to hit its target, it will help to address the housing shortage in South London and make it easier for people to find affordable housing.


Some have even said the government should intervene and make living in south London more affordable... Such things as:


  • Provide financial assistance to homeowners who are struggling to pay their mortgages.
  • Introduce a rent cap to help keep rents affordable.
  • Build more social housing to provide affordable housing options for low-income families.
  • Make it easier for people to access shared ownership schemes.

What do you feel about this topic? I'd be interested to know your thoughts? More social housing, or let the private sector pick up the slack? Do you feel that the government increasing the supply will have a positive effect on your property's value?



Monday, 7 August 2023

The True Cost of a Bad First Impression When Selling Your Clapham Home

First impressions matter, and this is especially true when it comes to selling your home. A bad first impression can cost you thousands of pounds, as potential buyers are more likely to make an offer below the asking price or even walk away altogether. If they even walk through the door! An overpriced property in any market will not attract any viewings from the portals to start with!


There are a number of things that can contribute to a bad first impression, such as a cluttered or dirty home, a bad smell, or a lack of curb appeal. Even something as simple as a messy driveway or unkempt garden can turn off potential buyers.




A study by eXp UK found that 69% of potential buyers would not consider a second viewing if they had a bad first impression of a property. The study also found that 31% of buyers would offer up to 10% less than the asking price on a property that made a bad first impression. eXp UK, the platform for personal estate agents, surveyed over 1,000 UK homebuyers to have purchased over the last year. They found that:


  • A shabby exterior or interior is the most likely thing to make a bad first impression, with 43% of buyers saying this would be a deal-breaker.
  • The size of the property is also important, with 35% of buyers saying they would be less likely to buy a property that was too small.
  • A bad smell is another major turn-off, with 25% of buyers saying they would not consider a property that had a bad odor.
  • An unkept front garden is also a major negative, with 20% of buyers saying this would make them less likely to buy a property.

eXp UK also found that a bad first impression could cost you up to £60,000 in the current market. This is because potential buyers are more likely to make an offer below the asking price if they have a bad first impression.


So, what can you do to avoid making a bad first impression when selling your home? Here are a few tips:


Start by decluttering and cleaning your home. This means getting rid of any unnecessary furniture, belongings, or decorations. You should also clean all surfaces, including the floors, walls, and windows.

  • Make sure your home is well-lit. This will make the space feel more inviting and spacious. You can use natural light by opening up the curtains and blinds, or you can use artificial light by adding lamps or overhead fixtures.
  • Get rid of any bad smells. This could mean cleaning up pet accidents, cooking food that doesn't have a strong odor, or using an air freshener.
  • Pay attention to curb appeal. This means making sure your home looks its best from the outside. You should trim the hedges, mow the lawn, and wash the windows.

By following these tips, you can avoid making a bad first impression and increase your chances of selling your home for a good price.


Here are some additional tips to help you make a good first impression when selling your home:


  • Stage your home. This means arranging the furniture and d├ęcor in a way that makes the space look its best. You can hire a professional stager to help you, or you can do it yourself.
  • Take good photos of your home. These photos will be used in your online listings, so it's important to make sure they are high-quality and well-lit.
  • Be prepared to answer questions. Potential buyers will likely have a lot of questions about your home, so be prepared to answer them honestly and in a timely manner.
  • Be friendly and welcoming. The first impression you make on potential buyers will be lasting, so make sure you are friendly and welcoming when they arrive.
  • By following these tips, you can make a good first impression and increase your chances of selling your home quickly and for a good price.


Are you curious about the value of your home in South London? Why not drop me a line or check out my free online valuation tool!


I am an experienced estate agent in South London, and I would be happy to help you get the best possible price for your property. I can provide you with a free online valuation, and I can also help you market your property to the right buyers.

Friday, 4 August 2023

Generation Stuck Remain Priced Out of the South London Property Market

Rising numbers of prospective homebuyers in South London remain priced out of the market without any hope of getting onto the housing ladder, according to research from Allbricks. The research found that the average house price in South London is now £500,000, which is nearly double the average national average. This means that it is now impossible for many people to save for a deposit, let alone afford the monthly mortgage payments.


The report also found that the number of first-time buyers in South London has fallen by 40% in the past five years. This is a trend that is being seen across the UK, as the housing market becomes increasingly unaffordable. The rising cost of housing is having a significant impact on the lives of young people. Many are now forced to live with their parents or in shared accommodation, while others are being priced out of the area altogether.



In 2023, the average full-time worker will pay 7.8 times their annual earnings for a home, but it was 3.5 times in the 90s. This leads to the realisation that most of us are renting our lifestyles. When you do the calculations, most of them can’t afford to buy the homes they’re renting. 

But is this a bad thing? Not really. Apart from the idyllic fantasy of owning your own home I don't see why someone in their 20s would want to tie themselves down with a mortgage as they are likely going to want to enjoy a bigger property fairly soon, or a different location. Having a workforce that is able to move quickly is a benefit for the economy. Perhaps this realisation will sink in and benefit the bounceback of the UK economy as a whole (providing the young workforce doesn't go overseas)!


Wednesday, 2 August 2023

Agents Accused of Over-inflating Rent Valuations in South London

 An online lettings platform has warned that some landlords in South London are being given "too good to be true" promises of rent increases by letting agents keen to win their instructions. You'd be forgiven in this market though as rents are ASTRONOMICAL at the moment as we approach the summer peak!


However Hello Neighbour says that according to its data, there is on average a 15% drop from the initial listed rent compared to what is actually agreed as the rental price by the tenant. The platform says that this is a common practice in South London, with the highest drops in price being seen in central London, South West London, and North West London.


I hear this time and again from landlords that have switched to Hello Neighbour from high street agencies, they tell us that they were promised unrealistic rent increases by their agents, only to find that the market simply wasn't there.



Dearlove advised landlords to make sure that their advertised rent is supported by a wide range of data and that their agent can access and process today's huge tenant demand quickly. If you're not sure whether your rent is realistic," he said, "get a second opinion from a reputable letting agent or use a free online valuation tool.


I am an experienced estate agent in South London, and I would be happy to help you get the best possible (realistic) rent for your property. I can provide you with a free online valuation, and I can also help you market your property to the right tenants. Are you curious about the value of your property in South London? Why not drop me a line or check out my free online valuation tool? 


Tuesday, 1 August 2023

South London Property Owners Spooked by Market Turbulence

New research from Bloomberg Intelligence highlights a 'spooked' market, where homebuyers are having to make sacrifices. The UK property market has been spooked by a number of factors in recent months, including rising interest rates, the cost of living crisis, and the ongoing war in Ukraine. This has led to a decline in demand for property, particularly in South London, where prices have been among the highest in the country.


As a result, many South London property owners are feeling spooked about the future of their investments. 50% (56% in October) of that group intend to purchase a house in 1-2 years (BI’s survey only includes those looking to complete within the next two years), a further 28% (27%) want to go execute on a deal in 7-12 months, with 17% (12%) preferring 4-6 months. Only 32% of buyers with unchanged schedules aim to complete in the next six months (only 25% in London). The market is likely to remain volatile for the foreseeable future, so it is important for South London property owners to be aware of the risks and to adapt their plans accordingly. 



Home buyers who are pausing or delaying their homebuying plans cited elevated mortgage rates (30%) or the high cost of living (22%) as the most pertinent issues. Some buyers delayed their buying plans (16%) while waiting for house prices to decline, with a smaller group (14%) also worried about the economic outlook.

So what to do? Having worked in London property for 20 years I can assure you that Londoners are the last people to relent to having to drop their asking price. A wrong mentality in my opinion because it slows the market down and actually causes further price drops in the long run. A 10% reduction on a £500,000 sale in order to acquire a £1m property at £900k is still a net gain of £50,000 by my maths. So if you are looking to move up the ladder be firm with your onward offer and explain that you have to reduce in order to make the move otherwise it's not going to happen. A win-win for all I'm sure (providing the end of chain is motivated to sell - moving upwards or not).

If you are considering selling, or maybe you're on the market at the moment and you'd like to know more then drop me a line and let's have a chat. Have you used my free online valuation tool?

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