What’s the London property market up to these days?

[SunnyUpNorth]

We moved out of London around 7 years ago and have had our flat rented out since then. We have been really lucky to have long term tenants but looks like that’s coming to an end in the new year.

We are wondering whether to just sell it or rent it again. I think it will need a bit of sprucing up to rent it out. If we sold it I don’t know whether we would be just aswell selling as is or if we would benefit from doing it up.

I remember when my BIL was buying in London a few years ago things were going to sealed bids within hours of being put on the market and going for over asking price. It didn’t seem to matter what state the house was in, just location and square footage. Is that still the case or are those days over?

Flat is in south east London if that makes a difference.

We are in the process of selling our flat in SE London (should be exchanging next week). I think if you price sensibly the market is fine (although would wait until Jan to put it on the market). We had two asking price offers within a week of putting it on. Good luck!

Thanks Robs, good luck with the sale.

SE london seems more resilient than other areas at the moment, but the prices there are much lower to begin with. Either way London as a whole on a downward trajectory. I imagine this will continue regardless of brexit as issue was always going to be it had just become too expensive.

I think you could always put in up for sale and if it doesn't move, just re-let. The London market is a mixed bag.

Does the rent cover the mortgage or make you a net profit ?

If so, I think I would hang on to it.

I started looking for a 2 bed flat in se London 18 months ago. The prices then were around 325k... now 280k.
I think generally asking prices for people who want or need to sell have dropped 20%. She is currently in the process of buying a 3 bed terrace in the same area for 335k... people are still asking that for some 2 bed flats... they are deluded
I would say if you can keep hold and it is profitable keep it, but don't expect it to get much capital growth over the next decade regardless of brexit. Early 2016 was the peak, cant see it getting back there before 2025 tbh

If you've lived in the flat as your main home you need to sell before April as two rules around tax for landlords are being changed and you could be much worse off if you sell after April 2020. It is my understanding Private Residential Relief and Lettings Relief change from April 2020. Private Residential Relief will be cut back by 9 months of exemption and the Lettings Relief would be abolished.