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Original poster

London Property market - your thoughts

60 replies

SarfEasticated · 28/12/2013 22:29

We have a small 2 bed flat (ground floor of a Victorian terrace cost us £140k in 2002 now apparently worth around £350k) and I would like us to move somewhere bigger. When we first moved to our area the houses were £250k - they are now in the region of £750k. It just all seems to ridiculously inflated for my liking. I still earn the same as I did when we originally moved in although my DH earns a bit more, the interest rates are lower, so our mortgage is more affordable but still. Do you learned ladies think that the London prices will ever come down?

OP posts:
domesticslattern · 28/12/2013 22:30

Nope. Sorry.

Boxofbugs · 28/12/2013 22:32

No, we have been waiting for 10 years. Even the small adjustment that did occur barely effected our neighbourhood.

HumptyDumptyBumpty · 28/12/2013 22:32

If major earning centres like the the City move their base of operation elsewhere, it might have an effect.

Unless the jobs go elsewhere, the people won't and people need houses.

Agree wholeheartedly that prices are now just ridiculous. Only solution is to leave the cesspit and get a job that doesn't require you to live here! Still working on that...

southeastastra · 28/12/2013 22:33

i did once, not nope they won't it's totally crackers but that's the worldwide market

MarshaBrady · 28/12/2013 22:34

No I don't think so.

MoreBeta · 28/12/2013 22:34

A small rise in interest rates would put you and others in financial distress if you borrow a lot now to jump to that bigger house.

How big an interest rate rise could you live with?

timidviper · 28/12/2013 22:37

We moved from London about 25 years ago and, at that time, DH was glad we were moving as he thought the prices were unsustainable and would crash any time Grin

I suspect they never will

Bowlersarm · 28/12/2013 22:37

Not yet.

DancingLady · 28/12/2013 22:37

Do you want to stay in the same area? Only way I've moved up the property ladder (hate that phrase...) is by selling flat in now-trendy area (wasn't trendy when we moved in) and buying a house in an up-and-coming area, a couple of miles away. We couldn't afford a house in the area we had a flat in.

Original poster
SarfEasticated · 28/12/2013 22:50

that wasn't what I wanted to hear!

Where we live now is really convenient for school, train station, and nice friends we have made since having DD. If we moved to a less trendy area we would have to buy a car and spend ages to-ing and fro-ing to school each day.

I would personally be very uneasy about borrowing too much at the moment as I worry about redundancies etc, and would like a place we could afford on one salary if necessary.

I think realistically our two options are stay and think about building an extension or move a mile away and buy a car.

OP posts:
noddyholder · 28/12/2013 22:51

Eventually yes.

Original poster
SarfEasticated · 28/12/2013 22:53

why do you think that Noddy? I am now hopeful....

OP posts:
Bowlersarm · 28/12/2013 22:57

OP, it won't be any time soon!

BettyandDon · 28/12/2013 23:00

I do think some parts of London are immune from prices dropping. A tiny 2 bed terrace across the street from us rose from 330k to 540k between 2007 and 2013, supposedly when 2007 was the peak.

I have a similar dilemma to yours but we can't extend due to leasehold rules. I'm thinking of taking a FT job to fund a big house move. On the upside if you ever manage to get a place for life in London it will be a nest egg IMO. I do think if you end up in a house that could be worth 750k or more you needn't have much of a pension! We are thinking of maybe getting a 2 bed that is ripe for extending or needing a lot of work but those are hard to find.

merryxmasyafilthyanimal · 28/12/2013 23:07

Your flat has more than doubled in price in 10 years and its value is rising every month, what do you think OP? Wink

No. Which is really depressing.

Money in the bank and renting an option?

DancingLady · 28/12/2013 23:10

Where do you live now?

AngryFeet · 28/12/2013 23:10

Keep and extend. They will keep rising.

NewJerseyHousewife · 28/12/2013 23:12

West, South, South East London won't drop there will be continued increase, elsewhere in other parts prices will stay static or rise slowly.

LaurieFairyCake · 28/12/2013 23:14

No, never

Not as long as there's no mass war or dreadful recession or catastrophic event

NearTheWindmill · 28/12/2013 23:18

On the one hand interest rates will be the key; on the other the UK/London are forecast to be one the strongest economies over the next 15 years. Where we live in SW London prices have literally gone bonkers in the last twelve months.

Southeastdweller · 28/12/2013 23:21

No, they may stagnate in the future but not decrease.

I agree that you should stay where you are and extend. You're in a nice position from what I can see. Moving somewhere more expensive would be crazy because of the inevitable rise in interest rates within the next few years, though perhaps your salary could increase as it has with your DH.

merryxmasyafilthyanimal · 28/12/2013 23:22

We've had a 'dreadful recession' and they've kept rising!

NearTheWindmill · 28/12/2013 23:23

I think you need to think ahead and look at school options for your dd at 11. What's available in London is limited and it might be worth moving into a good catchment now and driving a bit to primary in the meantime. It might also be worth renting your flat and moving a few miles away to good school catchment - either starting small there with the rental differential and your incomes or renting there.

AgaPanthers · 28/12/2013 23:25

Interest rates are absurdly low, and this is allowing people to afford (for now!) to borrow stupid amounts of money to buy tiny little houses.

As you've noticed you are now relatively poorer than in 2002.

Nobody can predict the future, but higher interest rates would affect the market.

How it will turn, nobody knows.

CelticPromise · 28/12/2013 23:29

A mile distance is nothing, only 15-20 mins walk. I'd move for the space. Our London friends are flipping miles away mainly.

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