London flat prices?

[SchoolOfKnocks]

Cash buyer here - wanting to buy a one bedroom flat in Zone 2, ideally with balcony.

Is it a falling market? Prices seem to have dropped but I'm thinking they may continue to fall. I'm in no rush.

Obviously NO ONE can predict these things and anything could happen! But I was wondering whether anyone has any feeling one way or the other about this....

Plan to keep it indefinitely, it wouldn't be an investment place that I would want to sell in a few years. So really it doesn't matter too much - but on the other hand I would like to buy the best place possible for my money!

I'd definitely wait - further falls are more likely than anything else IMO. I'm trying to imagine a scenario where city flats suddenly become very desirable & prices rocket...

I'd also have a good think about whether you truly would want to keep a 1bed flat indefinitely. Most, with the benefit of hindsight, would say they didn't.

I hear you - but yes I would want to keep it.

Does anyone else have any thoughts ?

I guess it would depend on how much you cash you have and how much cheaper you're expecting to get the flat? Are there any areas in particular you're looking at? Could you stretch to a 2 bed/flat with a garden?

I think prices will bounce back fast if a viable vaccine is announced... so a risk. I’m not selling my place because market is low, but reckon it’ll come back pretty fast next year. If you can find something at a good price now, I’d go for it.

I could stretch to two beds but would have to compromise on area. Not keen on garden flat due to security issues.

I'm not sure a vaccine is imminent tbh. Even when they find one, it won't be rolled out to everyone straightaway. Good luck with your sale @Bouncycastle12

You can probably pick up a bargain from someone desperate to sell without an ESW1 form.(waiting list is year at the moment) Make sure the block doesn't have cladding issues though.

That's a thought, although I'm unlikely to go for that kind of flat - I'm always drawn towards the bog standard period conversion type thing. Ideally with share of freehold!

The full impact of covid sadly hasn't even begun to being felt yet. Furlough has only just ended. Sorry to say but I think the next 12 months are going to be very miserable economically, and probably beyond. In your shoes I'd absolutely wait.

@Cavagirl

The full impact of covid sadly hasn't even begun to being felt yet. Furlough has only just ended. Sorry to say but I think the next 12 months are going to be very miserable economically, and probably beyond. In your shoes I'd absolutely wait.

Yep, agree.

I suspect prices will continue to drop but if you are renting in London at the moment, the money saved by buying will make up for a small drop in value. You should also consider how much you will save by buying before the stamp duty holiday ends.

I know the London market quite well.

There are places that will always be Relatively insulated from Priced plummets. They fundamentally have a great deal to offer. So beautiful market towns with great transport links for example.

And London also falls in this category. The culture, the restaurants, the Transport links... i could go on. And on.

So there may be dips but they rise swiftly.

DD had her zone2 flat valued recently. It was valued at what she bought it for 2 years earlier. We know she slightly overpaid then due to a shortage of suitable properties being available in a fairly desirable area. However the valuer predicted price falls due to Brexit!!! That forgotten curse! The City of London might well shrink and house prices might shrink with it. All those foreign Londoners might be off to work somewhere else. Covid or not!

I live in a Zone 2 flat south of the river. Prices have definitely gone down since Covid. Due to the number of new build flats over the past 10 years I'd say it is a buyer's market although flats with balconies are more sought after since lockdown. If you go for a conversion then you'd likely get the ground floor plus garden, the upper floor is highly unlikely to have a balcony.

I’m Zone 2 SE London, and there’s TONNES to choose from! I’d buy now to take advantage of the stamp duty reduction.

Eg 2 beds large Victorian/Edwardian conversions with large shared gardens from £450k

Partly depends on which area in zone 2?

Is it going to be for you to live in?

For me to live in yes

I'm more familiar with W14 and was looking there primarily - perhaps I should be more open minded

There are definitely flats with balconies there too!

Im trying to buy a 2 bed in Clapham/Balham with garden and prices have definitely increased over the last quarter to the extent that I'm wondering whether to wait a few months before buying.

This doesn't seem to be the experience of others in this thread though so I don't know if it is the gardens that are pushing up the prices

Any ideas what could happen with property prices for properties with gardens?

Are you currently renting? If you are, particularly expensive private renting (presumably in the W14 area?) one argument would be to just buy now. Yes prices might fall but some parts of London (including I think W14) will remain attractive to investors - including those who'll happily leave a home empty until the value has gone back up.

It's always a risk, but if it's somewhere you want to live and you can currently afford it I'd say go for it. You never know what's around the corner.

There's huge demand for more space particularly outside. A two bed with garden is going be seeing a rise in price.

Not great if that's what you're looking for, but potentially a good opportunity for someone who's happy with a one bed and/or no garden, since those flats are seeing a drop in prices. Lockdown was shit but temporary. London is full of parks and public outside spaces, big and small.

We're all different but whatever type you're looking for, I think there's no point stressing and agonising too hard over waiting and waiting for prices to further fall.

If it's looking for a home to live in (rather than a property as investment) then I'd personally just go for it if I found somewhere I wanted to live at a price I could afford. That's just me. Others would do it differently.

Agree with CavaGirl....this could be a very difficult time ahead. I think the potential upside of buying is low whereas the potential downside could be considerable.

Too many unknowns to buy right now....I would wait (indeed I am waiting) until the picture is much clearer and prices better reflect the current risks.

And if I am wrong I will pay a little more than today but I have a feeling that won’t be the case.

@SchoolOfKnocks

I could stretch to two beds but would have to compromise on area. Not keen on garden flat due to security issues.

I'm not sure a vaccine is imminent tbh. Even when they find one, it won't be rolled out to everyone straightaway. Good luck with your sale @Bouncycastle12

I don't really understand when people say garden flats are a security risk, but people who live in house don't think their ground floor is an particular extra risk 🤷🏻‍♀️

Which area of zone two are you looking - I think some areas are more likely to fall than others.

I am in the process of buying a 3 bed flat in London at the moment. I was discussing the state of the market with the estate agent who is managing the sale of my property and he said that there was a strong bounce in the market after easing of lockdown and the stamp duty concession. However since September the demand for flats has fallen - some sales have fallen through, and there are more nerves due to the second wave and uncertainty about job security. So it's probably a good time to buy but you could speculate that the market will fall further over the coming months. But honestly - no one knows!