London Property market - your thoughts

[SarfEasticated]

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?

No.

We moved to Kent six years ago and are completely priced out of London. Our jobs, family and friends bar one are in London.

Thankfully we have grown to like it here. Dc is enjoying school, streets are cleaner, friendly neighbours, our mortgage is affordable.

We looked at moving back in and simply would not live in the houses/areas that we could afford - think Thamesmead, Abbeywood, Mottingham.

We decided to stay put until our situation changes. It is not worth moving to a crap area just to live in London.

It has been bizarre in recent times. We bought a town house last January and refurbished it, including kitchen extension and garden landscape, admittedly to a very high standard and spent well in excess of 6 figures doing so - but the house has been revalued at 50% more than we paid for it. The profit was accidental too because we were downsizing albeit staying in London.

I'd like to think they will come down but I don't know when. Help to Buy barely affects property in my neighbourhood and many others as only small one/two-bedroom flats are beneath the £600k cut-off points. Likewise, it's hard to know how much interest rates will affect buying as so many people seem to be cash buyers or have huge deposits. It is absurd.

OP: in your position, I'd consider extending either into the gstden (if you have one) or, more ambitiously, digging out the basement.

OP, another economic advantage of an extension over moving is that the Council Tax stays the same if you extend your house yourself - it doesn't get re-banded to take account of extra rooms until you sell to new people. Whereas if you buy somewhere bigger you may be in a higher tax band.

Can you put a substantial insulated shed / summer house at the end of any garden to use as a study or playroom, or storage?

blu & lala I have discovered that we could build over our side return and extend into the garden by 3m which would be a great help. we could rejig the rooms we do have and have an open plan kitchen living room overlooking the garden. Just need to find out how much and how long it would all take! Definitely sounds like the way to go though and good news about the council tax band too.

I have no idea why that was posted a second time . Glad you can extend though.

Sarf, we're in the middle of a v similar-sounding extension of a ground floor Victorian terrace in N London. Pushing out by 3m to get a kitchen/living space so existing living room can be another bedroom. It's our only option really as moving somewhere bigger in the area is totally beyond us. Let me know if you want to talk through the process. It's been a bit harrowing (we currently have a shell and no hot water or heating aaargh) but equally friends trying to move are having nightmares too.
Still- I love London! Just wish I was 10 years older so bought 10 years earlier!

small I've just spent the last hour trying to work out how it would all work - couldn't sleep for thinking about it. I imagine it is a nightmare... any hints? When you are settled of course.

Will PM you!

Thanks Small will look forward to hearing from you.