Should I Buy in London? A Mini Guide to Cracking the Capital
It is no secret that London is the most expensive city to move to in the UK. A hub for culture, careers and politics, the average rent for a London property for a two-bedroom private home is £1,730, in comparison to the average price of £820 across the rest of the UK. Plus, this is before commuting costs, food prices and general day to day activities. Of course, despite living in London burning a hole in your pocket, you can understand why many do choose to move there.
Although renting in London may be beneficial for short term, buying in London could potentially be more cost-effective for the long term. Below, we outline a mini guide to moving to the capital.
London buying prices will largely differentiate between the borough that you choose to move to. Luckily, in London, you have a wealth of choices - with 32 London Boroughs to choose from. Choosing an inner London borough like Camden, Greenwich, Lewisham, Westminster or Islington is going to incur greater costs than an outer London borough like Barking, Kingston Upon Thames, Sutton, Harrow or Waltham Forest. However, you will also need to consider travel and commuting costs on top of this. Some individuals will prefer to spend a greater amount on mortgage repayments and live in an inner London borough, rather than commute a lengthy distance and consequently spend more on travel.
Council tax is an annoying but legal fee that shocks most graduates when they leave university, as they were exempt from paying before. The cost of council tax depends on what band your property falls into which is based on the worth of your home, the energy efficiency rating and many other factors. Generally speaking, Westminster is known to have the lowest council tax rates in London whereas Kingston Upon Thames has the highest.
What life situation are you in?
Buying in London may not be feasible for a graduate or young professional unless they have accumulated years worth of savings to help pay for deposits. However, buying in London may be more reasonable for couples looking to start a family or families themselves. Buying is not only a huge investment but it is also a commitment too - however, buying does help pay off in the future.
If you are buying your first property, looking into the government’s help to buy scheme could help you make your first steps onto the property ladder.
The fast-paced lifestyle of living in a city like London transcends to their housing market; viewings of a prospective property in London can happen so quickly and thus the house could be under offer or even sold a few days after being on the market. This is why you need to be prepared mentally and financially for how quickly this process can happen. For instance, you could do be doing property viewings in the morning, lunch break and after work, and decisions need to be made quickly.
Here at Simon Levy, we have worked with many prospective house buyers in Greater London, providing comprehensive house surveys for a range of clients. To find out more about our services, contact us today.
