London flat market

[kirinm]

Just wondering if anyone has any current experience of the London flat market? I'm in SE London (Zone 2) and just about to sell my 2-bed victorian conversion with balcony and large garden. Land Registry doesn't seem to be up to date and I have no idea of sale prices. I've seen a few places come back on the market so I'm assuming there are sales falling through.

SE london based- friends who have tried to sell 1 beds (zone 2-3) with little to no outside space (bought c. 2013-2016) have given up trying and are staying put. V low demand.

Couldnt give my 2bed flat away. The viewings came in dribs and drabs, but no semsible offers, most around 50 to 60 percent ask price. 1 guy photographed my flat inside out then offered 85% plus all my furniture, paintings, cutlery, pots n pans... I accepted, but asked for a night with his wife.... The estate agent of a posh firm didnt know what to say when I gave that proposal... But he did (to give him his dues) pass it on.

Overall, didnt sell, wasnt even close after 9mths on the market. Sitting empty now, waiting to see what rent rules Boris wants to introduce.

Grenfell cladding issues have made biyers so flaky. My flat has no such issue, but FirstPort managed which equals service charges of 5000pounds per annum, insurance of 2500ppunds per annum and 300 ground rent annually. Just killed the sale prospects. Just by Heathrow flat, nothing flash, quietish...

"cant give it away"....

Worst buy of my life, by miles. Awful.

I'm looking for a 2 bed with a garden so ping me the link if you're comfortable when you market it

Currently selling a 1

Also the market is busy for lots of 2 beds . All seem to be getting snapped up or the ones I'm looking at do

No garden alas. Has a boxy glassy balcony that looks lovely... But you cant open the door outwards onto the balcony if it has any furniture on it like a table, a chair, even a big pot plant - hopeless design. Looks great, but utterly useless.

My experience is that service charges and the threats of annual rises by chamonix or firstport are killing flat sales. In 2012 my total charges were £1915. Today it is a shade under £8000, with a letter on my desk now talking about the post grenfell 'hard insurance market' which will add at least another £1200 on 1 january 2023... So £9000 charges next year.... £750/mo before mortgage, ctax, bills.

It isnt worth it. I know it, buyers know it. Give first port a chance and itll be 10,000 per annum in the blink of an eye.

DONT BUY A FLAT, ANY FLAT.

I think yours will probably be fine because it's Victoria conversion + large garden. The slow ones are the modern ones (cladding fear/high service charge) or the ones with no outside space.

I've been shopping SE4 for a 2 bed. High prices for a properties that have been carved up really badly to squeeze another bedroom in and often shared gardens. 500k+
I've offered on a small house in SE26 and it's stunning.

.

When we recently sold in central London we did get advised by Savills that we should respond to low offers with counter offers, but I don’t think that was the sort of thing they had in mind?? 🤔
In your place I would have tried to get the 85% offer up to 90% and accepted that... the high service charges do put many potential buyers off as we also found. And estate agents routinely overvalue ... It’s a dirty business and not in a good way.

They must be moving though, because heaps that I've tried to view are now "under offer" ... although I must say there are a few I've seen on Zoopla since last summer .

I marked them as favourites and hoping the price drops down on some.

I have seen a lot of people selling for less than they paid in 2016 ... and another group that seem to think their place has gone up 150k in two years (clapham/brixton way)

I've seen lots of flats in SW London sell for close or under what they were bought for a few yrs ago. Unless big one with gardens.

If you bought a while ago it's probably ok, I would try and sell now in case the market turns due to interest rates.

The issue now is FTBs are older, prices are so high & more remote working. If I was a 30 something FTB now I would never look at a flat, I would go for a house further out.

I think I read that FTB purchases are pretty stagnant in London as more are looking elsewhere hence the huge increases in other areas.

This is interesting. I'm looking to buy a 2 bed in Marylebone and prices are down by 15% since 2015.

I gather the rental market is crazy according to the estate agents, flats are flying off their books. That said, lots of the landlords are selling up.

This thread is making me reconsider. We're only 30 minutes by tube from central London but I want to be more in the thick of it.

The service charge (up to £10k for some we've seen) is off putting, plus the leases all seem to be around 125 years so are a declining asset until you take the pain and extend it (again, about £300k for the flats I've seen). Then there's the flats with hefty redecoration due and there's no sinking fund.

But I'm still envious when I'm getting the train home and I could be walking to my flat.

The service charge (up to £10k for some we've seen) is off putting,

Save on the service charge & stay in a central air bnb a few nights a month

I recently sold in zone two, small two bed no outside space, Victorian but purpose built above a shop. I bought in 2016 and made a profit (not huge, but 10%). Location was excellent though.
I think it depends on so many factors that it's really a case by case basis (unless one of those new build buildings).
Get some agents in see what they say.

Marylebone is lovely - that was where the flat we recently sold was (family flat). It had been bought by my father many years ago so of course we still made money on it but we ended up accepting an offer over 10% off the estate agents valuations as buyers can pick and choose & are obsessed with square footage (our flat was small but prime location).
It’s a great time to buy in central London I should think especially places like Marylebone. The market is bound to recover there eventually but it could take a few years

I live in C London in an area where there are many gorgeous mansion blocks. They are going under offer very quickly. Some didn’t make it to websites before being sold. Service charge of £8k isn’t putting people off.

Marylebone is lovely - that was where the flat we recently sold was (family flat). It had been bought by my father many years ago so of course we still made money on it but we ended up accepting an offer over 10% off the estate agents valuations as buyers can pick and choose & are obsessed with square footage (our flat was small but prime location).

That's interesting. We had a flat in the less posh end of Marylebone when we first bought and it doubled in value in four years. I think those type of increases are perhaps unlikely to occur again in central London.

Some flats seem to go in a couple of weeks, others hand around despite being nice flats just off the High Street. I never cease to be amazed that people drop seven figures to buy a flat for their kids to live in as a student. None of my friends at London unis lived anywhere like that, more grotty flats in fairly ropey parts of London.

Ours is share of freehold so no service charges / increasing ground rent to consider.

I'm not too far from SE4 actually and I'm seeing some two beds on for £600k+ but no idea what they're selling for.

Our old flat was freehold but still had a service charge. Do you not have to pay for cleaning of communal areas, insurance and any building maintenance?

Hmmm my next door neighbour bought his 1 bed flat with shared massive garden for way more than he paid just 15 months ago!

paid 310 and it’s just gone for 355and went super quick (it’s lovely inside though needs zero work)

zone 3 north London 🙈

it’s hard to say I suppose - another flat in my building is for sale now a while though (it’s Tiny and needs loads of work) don’t this it’s gonna go easily they have lowered price twice 🤷‍♀️

Yes but it's on an ad hoc basis rather than a monthly charge - although personally I think I'd prefer that. It's a house conversion and only 3 flats so maintenance costs are relatively low.

Our flat is share of freehold, we have a lease of 990+ years and as it’s a small block, we manage the property ourselves. We pay around £250 per month service charge, which covers the garden (we have a good size communal garden) and cleaning of the common parts. Our neighbours recently sold up and they got asking price + within a few weeks. We’re in zone one. Other flats in the area seem to move quickly, particularly if they have outside space.

My dc sold his 2 bedder, own garden, share of freehold sw London victorian flat easily with a good profit. Had to pull out as his onward purchase failed its. survey spectacularly, couldn't get mortgage.

I’ll PM you kirin.