BUYING OR RENTING PROPERTY IN THE UNITED KINGDOM
The second quarter of 2015 has seen a hike in the prices of property in the United Kingdom by almost £100 per day. This is a significant amount, especially for young workers and families who can barely afford properties at the moment. A £100 per day, price hike means that the average value of property will have increased to an average of £200,000, which makes access to a decent living space, a dream for many.
Even though the property prices have experienced a hike, it is observed that after a pervious dry spell in property purchases, people are again becoming interested in what the dealers have to offer. Previously, property possession was on a slow train track. This was mainly due to the tighter lending conditions, adjustment after the fluctuation in prices and especially political factors which played their part.
Effects of the elections:
The recent general elections in 2015 also had a part to play in the buying and selling of property in the United Kingdom. The results of the general election have cleared most of the speculation surrounding the housing market. With the new government taking over, property dealers who have been sitting with all their eggs, firmly under them, will encourage the properties to be on the market as soon as possible. This is bound to make large numbers of properties to be put up on sale in the coming months.
Specific to London, the property prices are anticipated to shoot up. As reports reveal, £26 Million worth of property has already been exchanged between buyers and sellers. This is expected to rise by £30 million within a few days time. Properties in London will experience a great difference in the pre-election and the post-election prices. Moreover, surprisingly, the arrival of the Royal baby and the starting of the summer season have also influenced the buyers and sellers of property – but this could just be a myth as well.
BUYING PROPERTY IN LONDON: STARTING FROM THE SCRATCH
If this is the first time you are renting or buying property, you need to make sure that you consider some essential matters before taking the plunge. The following is a list of some of the things you should consider before you plan to buy property:
1. What are your plans for the future?
Buying a house is an important milestone in anyone’s life. Prior to buying property, you must revisit your life and future goals. You must figure out how much time you are planning to spend in that particular area and consequently, property. For example, if you are planning to start a family soon, there would be no point in getting crammed with your partner in a studio apartment. Moreover, if you have a job which requires you to travel for long assignments frequently, you may not want to invest in property or get into the hassle of mortgages. Later on, due to any reason, if property prices fall, you would have to incur unwanted losses on your property.
2. Rise in interest rates
One of the most frequent questions is what will happen to the value of the property if interest rates rise. All over the world, interest rates have been on the lower end since the last few years. However, in 2015, they are expected to experience a hike. It is expected that lenders will be testing applicants to conclude whether they will still be able to afford paying mortgages if the interest rates were to rise. That is to say, if mortgage payments increase, borrowers will have to cut their stomachs even more in order to afford the property that they are living in. hence, it is important for you to prioritize and ask yourself if you will be willing to sacrifice on other aspects of your life, such as your annual vacation or other luxuries, in order to afford the rising mortgage payments.
3. Making the right bid
Before you buy property, make sure that the winning bid you are planning to make is what you can actually afford. If you make a bid that you cannot sustain later on, then you might land yourself in trouble. In such circumstances, you need to ask yourself if you will be ready to pay such large mortgage payments in the future.
4. Responsibility of owning a house
It may seem like a dream that you finally have a place you can call your very own home. However, with home ownership, come other responsibilities as well. House maintenance, repairs, renovations and expansion are just a few of those. You need to be sure that you are ready for these responsibilities otherwise you may be in for some unpleasant surprises in the future.
5. Renting vs. owning
In the United Kingdom, the concept of renting is also quite common. Many landlords prefer tenants who want to stay in for a long time and secure the place that is being rented. This way, the maintenance and the mortgage expenses maybe shared by both the parties, if not fully taken over by the house owner. Moreover, you can negotiate a cheaper rent as well.
6. Do not restrict yourself to one area
If you really want to live closer to London, but cannot afford expensive houses or apartments in London, then why not search for an area on the outskirts. As a matter of fact, housing prices in London are on the rise. According to one report, the rise is almost three times faster than property up north of the United Kingdom. Why not opt for options that are on the outskirts of London and get a cheaper deal?
7. Avoid competition
Avoid unnecessary costs by bidding and out stretching yourself. Instead, choose properties which are not in the market yet. That is to say, search for houses or apartments that let you make an offer yourself. Moreover, resort to giving out notices that you are looking for a property. Someone who has not their property in the open market might contact you after all.
Do not set your heart on one property without researching every property thoroughly. Research is the key to land the property of your dreams which is not heavy on your bank account as well. Make sure that you survey the running price of properties in your desired neighborhood before making a bid.
9. The case of Estate Agents:
Always remember, estate agents are trying to get the highest bid for the seller and not the buyer. The seller is the one who is going to give them their share of the payment, not the seller. Hence, unless you are in a rush, consider hunting for a house yourself and not through an estate agent. Estate agents should be consulted only and not hired – unless your bank account is heavy.
Now that we know what things to consider before buying property in the United Kingdom, let us explore the different properties available for rent or sale in London:
• London apartments for rent:
1. Kingston Road, London SW 20: Three bedroom apartment for rent in London
A part furnished apartment is available for rent in London on the 20th of May, 2015. The landlord is willing to rent the place through a long term agreement. Key features include three double bedrooms, a private garden, desirable and popular location, spacious living space, contemporary interior and close to basic facilities and services.
In order to view this property, contact Ludlowthompson.com, Wimbledon.
2. Denison House Lanterns Court, Lanterns Court: Studio Apartment for rent in London
A fully furnished studio apartment is available for rent in a central location in London. It will be ready to be occupied on the 17th of June 2015, with an initial deposit of £1860 prior to occupation. Key features include 24 hour concierge service and a south facing front. The property has fine wooden flooring throughout, a fully functional kitchen and stylish bathroom fittings.
In order to view this property, contact Life Residential, Canary Wharf Office – Lettings.
• Apartments for sale in London
1. Wellington Court, Knightsbridge, SW1X: six bedroom apartment for sale in London:
With a beautiful view over Hyde Park, London, this six bedroom apartment spreads over 10,000 square feet. Showing off interiors which are exquisite and well designed; this apartment flaunts private terraces as well. Key features of the apartment include a pent house, six bedroom suites, a gym, Jacuzzi, cinema, a music room, a spa treatment room and six terraces. All this comes at a whooping price of £35,000,000.
In order to view this apartment, get in contact with Wetherell, London.
2. Millbank, Westminster, London, SW1P: Four bedroom London apartment for sale:
On the bank of London’s River Thames, this spectacular apartment has a 2.75m floor to ceiling height. Designed by the prestigious designer Bespoke Boffi, the apartment flaunts Miele and Gaggenau appliances in the kitchen. Key features of the apartment includes four bedrooms, one reception room, four bathrooms, leisure facilities, balconies, penthouse, a roof terrace and a private parking.
In order to view this apartment, get in contact with Knight Frank- New Homes, London.
Related references for apartments for sale in London:
- 10 Things About Property Market, available at http://www.theguardian.com/money/2014/apr/10/10-things-property-market
- Things to Consider Before Buying Your Home, available at https://www.cambridge.gov.uk/things-to-consider-before-buying-your-home
- Panic Selling and Gaundering Hits the Luxury Homes Market in London, available at http://www.telegraph.co.uk/finance/property/11589652/Panic-selling-and-gazundering-hits-the-luxury-homes-market-in-London.html
- House Prices in Britain Climb £100 a day in-April, available at http://www.telegraph.co.uk/finance/property/11591792/House-prices-in-Britain-climb-100-a-day-in-April.html
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