Do you think property prices in London are going to go down at all?

[Bearcrumble]

I can't decide whether to sell a flat I own now or in a year's time - at the moment I have tenants in who want to stay another 6 months but I do worry that the deeper into recession we go, that prices will fall.

I will need to sell by next Spring as we want to buy a bigger house than we now live in (2 bedroom and expecting second child in April).

I feel that having 2 properties on the market at once will drive me insane and my gut feeling is to give the tenants 2 months, spruce the place up and put it on the market this March. We tried selling it with them in situ but the flat is VERY cluttered and I think it was putting people off. Only had 4 viewings in 2 months (although admittedly it was (Nov-Jan) so I took it off.

[passionsrunhigh]

really depends on the area you are in, as far as where the prices will go.

[Bearcrumble]

The flat is in East Dulwich.

[passionsrunhigh]

good area! I'd say prices will stay the same, possibly even rise a little if it's the best part of E.D. (nearer Lord's lane). But if the same, you could as well sell now and maybe buy in the area where they WILL fall (not much though in Lon), a bigger place.

[Sleepwhenidie]

I'd say exactly what passion said, except for the bit about selling. IMO I can't see prices falling by much in nice parts of London, demand is simply too high. I wouldn't sell in the hope of buying bigger, cheaper in a less desirable area though, for three reasons;

• you will have to pay capital gains tax if your profit on sale is big enough
  
• you get very little interest on money in the bank (is in fact becoming worth less in this economy) and you have to sit on it until/if the market moves and you find another place
  
• you will have to pay stamp duty on next purchase
  

It sounds like you have good tenants and most likely a very rentable property, unless you need the money, or will do soon, I would sit tight.

[Sleepwhenidie]

Argh, sorry, should have read your OP more thoroughly! See that you will need the money next year...I would take another six months rental then put it on the market, gives you a chance to spruce it up, get it on sale after the summer lull, I don't think London prices will move much in six months. Then you still have plenty of time to get it sold without feeling under pressure?

[SunnyUpNorth]

Def think prices around Lordship Lane will continue to rise, especially with the Olympics and east London line extension to surrounding areas. SE London is really up and coming. I agree with taking another 6 months rent and then sell as close to when you want to move as you can.

[MyMascaraHasRun]

No, the market is too international.

[bibbitybobbityhat]

Have you seen my thread (started yesterday) about property prices in ED? Prices seem to me to be going up and up and up at an utterly insane rate atm!

[Bearcrumble]

We do need to sell as the house we live in will be too small and we can't afford a mortgage (well possibly a very small one). We have property because of inheritance rather than income. DH doesn't earn a lot and I am a SAHM with a 2-year-old and another due in April so won't be working for a while.

The photos on the estate agents' website are shitty (kitchen cabinet door hanging off in one of them, and garden looks messy) - and the flat needs a good tidy up. I do feel that the state it is in currently means it probably won't sell.

I've been told that the best times to sell are either March-July or Sept-Oct and I worry that if I miss the boat and get no sensible offers in Sept-Oct we'll get into debt we can't afford covering the mortgage over the winter.

It's not that near to Lordship Lane. Sod it, here's the link - www.pedderproperty.com/Property/Residential/for-sale/London/East-Dulwich/Underhill-Road/PWS22776.aspx

If you really think it will go quickly in Sept once painted then I'd be happy!

[londonlottie]

We've just marketed and sold our house in the ED area with one of the prominent local agents (W&S) and their experience, along with ours, is that the market is currently pretty buoyant. We had our house in the market with them last year, and have just had it go under offer for a good chunk more just one year later. Our agent told me they're as busy as they've ever been because the area still represents good value for money given its connection to central London and the City. Have to say I agree with him.

[Alphafemale]

Terrible photos, I'd change agent. I think it'll sell whenever you put it on tbh, you're panicking over nothing. The London market is mostly buoyant and that won't change soon. And ED is sought after.

I'm not an estate agent, just an avid property watcher! But IIWY I'd hang on, get the tenants to pay your mortgage for a bit longer and sell when you need to and not before.

[Bearcrumble]

Thanks.

Yes, they are comically bad photos aren't they?

[londonlottie]

I'd agree with all of that - sorry hadn't looked at the pics before. Good advice from AlphaF and I would definitely change agent. I'm from the area and haven't heard of them.

[Alphafemale]

They are indeed comically bad! It looks like it's probably a ncie flat but you can't see the bedroom (no picture) and the other photos are crap.

[AgnesBligg]

Yes, wait till the Summer and get some great photos taken. I know the road! Very nice, you will sell easily if it's marketed properly.

[passionsrunhigh]

Underhill rd. is quite noisy though, and depending which end quite hilly to walk to the shops, so it's not quite prime ED, but the garden is v.nice. I just don't see much movement with 1-bed flats prices happening within next year (unless off best part of Lordship lane, or especially large).

[Bearcrumble]

I agree that it's not the best part of ED - it's up the hill, opposite the back of the small graveyard (just past that mansion block).

The view from the living room windows is lovely - you just see the trees of the graveyard. Visitors always used to say "How lovely, living opposite a park" and I'd have to say "well, actually...."

I don't think it's very noisy but then I've always lived on main streets (eg Barry Rd before the flat and now I live just off a big road that's a major bus route).

Thanks everyone for your advice.

[minipie]

Hmm, actually I do think prices will drop - even in the more sought after areas of London. (Well ok not Chelsea and Kensington but they are a whole different market).

I suspect asking prices might stay the same or similar - but prices will fall in real terms due to inflation and also due to selling prices being further below asking.

I am already seeing asking prices near me (SW London) which look a bit lower compared with some of the crazy prices of last year. Not masses lower but a bit lower.

I also think that people will be very very cautious about buying - both this year and next year - so presentation will be very important! so I would def spruce up the flat before marketing. And get a new agent (one who does floor plans!)

Good luck!