Is Buying Property in London Worth the Money?

In recent years, London has become one of the most popular destinations in the world to invest in property. With its consistent rental and capital growth, it’s no wonder more and more people are tempted to buy a property there. However, is buying property in London really worth the money? This is a question that many people are asking themselves these days.

Average house prices in the London area

London, the UK’s capital and most populous city is home to some incredible architecture but it also has one of Europe’s highest housing prices. The average house price in London December 2020 was £496 thousand – almost double that of Great Britain which comes out at just over £251,000.

Given the expensive housing prices despite the increasing demand for housing in the city, here are some considerations to look at when buying property in London:

1. When to buy?

House prices in London are likely going up 15% by the end of 2022, and property values could be worth £60,000 more than they were in 2021.

The COVID-19 pandemic has had an effect on how high or low housing costs have gone across Great Britain – with Knight Frank predicting that there will really only see a small drop off after 2020 when it comes to real estate activity despite recent political activities such as the EU Referendum and the eventual Brexit.

2. Cost of living.

Consider your spending when it comes to the purchase of a home. You’ll need enough money for not just down payment, but also other expenses such as council tax and commuting costs that vary depending on where you live in London

For instance, Wandsworth residents pay less than those living elsewhere because they’ve been granted special rates by their borough council; however, this may mean higher mortgage payments if you are purchasing a property near tube stations.

3. Getting a mortgage.

Knowing how much you can borrow is crucial when taking on the challenge of buying a home in London. There are many factors that will affect this number, including your monthly income and any existing loans or mortgages currently held by individuals within both dissolvement from former employers as well other sources such as educational institution debt service obligations (like student loans).

Foreigners who wish to buy property in London may also apply for mortgage loans; however, lenders and banks have more stringent policies for non-UK citizens. It may be more convenient for you to have the sufficient funds to buy rather than applying for loans.

4. Areas to look at

London is a city of endless opportunities. If you’re looking to get out into nature, then London’s countryside can be found just north from the metropolis – in Wandsworth or Putney.

Southall meanwhile has close connections with Crossrail which will make it one important destination once it becomes operational later in 2022.

5. Other options

Choosing to live further out from London can result in cheaper property prices. Make sure you take into account how much it will cost for your daily commute when looking at potential savings on mortgages or rail fares, as well as reliable train service within reach of where you choose to settle down.

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