London flat not selling. Why? Why? Can you plz help me to understand.

[Mypizzicato]

My 3 bedroom flat is not selling. It has been on the market since a week before the 1st National lockdown in March.
Had a few viewings but not offer. Price was reduced twice since March.

www.rightmove.co.uk/properties/68930043#/

I think it's a nice flat in a great location. We also extended the lease till 2197
I know that London at the moment can be a difficult market but this would be still a nice flat when things would be back to normal.
Thanks for any suggestions

I mean, it will still sell eventually, after covid situ improves most likely, but this is the reason it's not selling quickly with all the choice of flats on the market (plus the reasons that all flatts are a hard sell unless a conversion with a garden).

Smallgoon for London the price for the space is very, very good!
Of course some people are put off by the look of 70s blocks, and it's ex-LA, otherwise it will be a lot more expensive!

Think oligarch's daughter, french investment bankers. The average white male in the City earns £150k. For such people, they can afford pied a terre in London and a country house.

Do they buy dated flats in a council block as a pied a terre? I don’t think that OP’s flat would ever have been attractive to that share of the market.

mortgage lenders have higher thresholds and are nervous about values falling.

There has been a lot in the press about this. Apart from on mumsnet where deluded owners of ex council flats think oligarchs are queuing up to buy their properties.

Main shot should be the balcony

I agree with comments about the kitchen looking dated.

Bedroom 2 looks devoid of any homely touches. It's an awkward photo angle but looks very small with a double bed crammed in it.

@TazMac

It seems all the posters from London are convinced o it's worth, probably because they don't want to face reality that they are sitting in overpriced property due a correction

Exactly this.

An ex LA flat, in the same sort of state as OP’s, would cost about 150k in Sheffield or Manchester. You could get a really nice, non LA one for £250k.

But it's not Leicester is it?

I'd say it's still overpriced, I'm afraid. There is a huge amount of supply in that price bracket at the moment and not enough first time buyers to go round. We sold our 2-bed house for basically that much (zone 2) and it's got a new kitchen/bathroom and a garden. I think you'll need to drop again if you want to shift it.

@PresentingPercy

Making money to leave to dc absolutely makes sense if you can. It always did. We don’t all have to want or enjoy a socialist utopia where we have nothing to pass on or share with family. Some of us come from families who have striven to own property for generations. Others can strive for the same but I totally accept it’s difficult for some. Not everyone will achieve it, and, of course it’s more difficult now if you are not supported by family. Lots of people want better for their dc and try really hard to provide them with a leg up to buy a property. I’m not sorry I bought a house when I could and many who are twenty something now definitely had parents who could have bought property when the earnings/price ratio was a lot more favourable. Even nurses bought easily when I was younger! But it was choice. We don’t have any friends at all who didn’t buy a house. None. So they have equity to pass on.

What is utopian about wanting to be able to afford to live close to your work so you are not commuting 3.5 hours each day? And what is socialist about it? A system that is creating such huge divides in the society is not sustainable. Just because you feel threatened doesn’t make it ok. Also, I’m alright Jack is not a sustainable or nice place to be. And I am saying this as a person who has bought her home in an expensive area with her own money only. My job is to educate and equip my children with enough skills and knowledge to get them ready for this world. Or is that too hard to do so property is an easy way out? If it’s got to be ‘animals eat animals’, is it a good place to be?

@TazMac

Hmm. I wonder why Sheffield is half the price of Maida Vale.

No money launderers from China, Russia etc.

You don’t do history do you? In the 1980s they were giving big terraces away in London. No one wanted to live there. London prices being as high as they were until recently, is a new phenomenon.

HAHAHAHAHAHAHAHAHA!!!!

@CatAndHisKit

Smallgoon for London the price for the space is very, very good! Of course some people are put off by the look of 70s blocks, and it's ex-LA, otherwise it will be a lot more expensive!

That's a fair point, I've lost of track of what flats can go for in certain parts, as the disparity is so vast in London!

The exterior would put me off a little if I'm honest. That said, the advantage of ex-LA is that they're generally well built, and are also spacious. For me, I don't personally see the point in having a third bedroom if it's just a box room. I'd rather have an 800sqft 2 bed flat, so that both rooms are largish. For this reason, the layout is not ideal for me.

The flat deffo needs work to bring it up to date and make it look less tired. So a potential buyer has to accept that they'll need to set aside a few months, and £££ to do this. In this current climate, I'm not sure people have the patience.

@TazMac no they would be buying £1 million flat. But if a typical maida vale flat is £700k, you can hardly expect the ex LA equivalent to be £159k.

In my area of zone 3 north London, the ex LA 2 bed flat is 300k while the average flat is £400k -£480k. It's cheaper but still not that cheap. In fact the ex LA 3 bed (with box room) is the same price as my 1930s period block.

I think the price is very reasonable. My 2-bed flat just round the corner sold for over £200k more. The location is fantastic but the block itself looks grim from the outside. Could you get the agent to add some more picturesque pics of the location - the canal,
the bridge by the Waterway, etc?

All I can think of is the very old-fashioned kitchen. Everything else is lovely.

I think it's the bathroom personally. A three bedroom flat is going to attract families, or people planning to either buy and rent to sharers, or buy and live there and rent some rooms out. I wouldn't think any of those people are going to want one tiny bathroom with no bath between three or more people. Lovely area. Nice flat. But that bathroom would be a deal breaker for me. And yes, I live in London so am not comparing with some kind of mansion in the back of beyond.

My brother is struggling to sell his flat in Bermondsey for similar reasons. He will probably end up renting it out but it's better placed for this as it has two bedrooms and two bathrooms (one en suite and both with a bath).

@Mypizzicato if I were looking in your area/at a certain price and size, saw your ad and clicked on ‘see similar properties’, unfortunately I’d discount yours based on first appearances. More comprehensive photos with a little more care to show the flats potential as a home, would really help.

Don’t know about price as haven’t lived in the area for a long time, but when I did, Shirland road was not as well regarded as other parts of maida vale, so price should reflect that, plus as market is slower at moment, ex council will be a bit slower to sell as less in demand, plus needs updating throughout which also needs reflecting in price. Good size though with balcony, And long lease, so at right price will be a great purchase for someone!

I wouldn't think any of those people are going to want one tiny bathroom with no bath between three or more people

I was saying the same earlier, Fauvist but now I wonder if the box room could be made into a bathroom - it's too small for a bedroom though could be a study - I'd rather have a proper bathroom. Of course that means dropping the price to allow for this, and I'm not sure whether you'd need permission from council / freeholder, but possibly not.

It's a good size and private balcony though - not usual!

I also wonder if service charge is huge as there must be a lift - that alone can put people off, but again will work if price is negotiable.

now I wonder if the box room could be made into a bathroom

This is a really good idea and probably what I might do if I were buying this flat.

no they would be buying £1 million flat. But if a typical maida vale flat is £700k, you can hardly expect the ex LA equivalent to be £159k.

Flats are difficult to sell at the moment. They are worth less than they were last year. So the flat that was worth £1 mil last year is now no longer worth £1 mil, it’s worth less. Therefore OP’s flat is also worth less than it was last year.

The fact is, OP’s flat has been on the market since March and no one has bought it. If it was priced correctly - taking in to account the loss in popularity of flats, the scruffy state of the interior, the fact that it is ex council - then someone would have bought it.

www.theguardian.com/money/2020/oct/21/private-rents-london-covid-crisis-cities-britain?CMP=Share_iOSApp_Other

This article states that average rents in Maida Vale have dropped by 20% this year. Which could indicate why a landlord hasn’t snapped up OP’s flat.

Time will tell as to whether, or not, house prices will follow rents.

That's a great area OP. I get that London is ludicrously expensive and obviously COVID has made things uncertain
BUT generally you just want to be the best ex LA flat out there, which you aren't right now with slightly dated decor.

if you can afford to, I would spend £3K getting the kitchen cupboards replaced and some modern curtains/blinds.
If you can't afford that, I would spend £500 on painting the kitchen cupboards white and getting some fresh bedding, basic print on walls, all in modern bland neutrals. Needs freshening up. It might be enough to push it over the line. :-)

The kitchen is very dated, so I'd either repaint or replace the cupboard doors. I'd remove the curtain thing from the kitchen and put some simple, light coloured blinds up instead. And the photo of the living room needs replacing with one where the curtains are wide open (or removed altogether) - having them closed makes the room dark and gives the impression that the view is horrible.

Ex-council houses are an acquired taste. You get will get best return on these by renting out. A buy to let landlord is your best bet for sale. They won’t care about how the flat looks, as they can fit in upto 4 tenants in this flat at 600£ a pop considering the excellent location.