Getting your foot on the property ladder is something a lot of us aspire to do. It’s one of those life goals that we aim for. The reality though, especially if you live in London, is that property is extremely expensive. Whilst you might have a good job with a decent salary, would you still be able to get yourself a mortgage for the value required to cover the average London house price? Let’s take a look at just how expensive the capital can be for homeowners!
Average London House Price
We fully expect the capital city of England to be one of the most expensive places to buy a house, but what is the average London house price? It is currently almost £667k! This is a rise of over 2% over the last three months. Almost a 4% rise over the last year. Obviously, there are different factors which will change the expected price for London property. The location, the number of bedrooms, the type of property. All of these are important factors. The average cost of a flat is £540k whereas the price for a terraced house is typically £720k.
What Do You Want From Your Home?
Firstly, you need to consider what you want from the property you are looking at buying. How many bedrooms do you need? What about bathrooms? Do you need a garage or a driveway for off-street parking? How about a garden? If yes, what size? Perhaps you have a commute to make every day so you need to be close to decent motorway connections or a tube station. It could be that you have children, so decent schools are likely high on your agenda. Maybe even private tutors from the likes of Tutor Hunt. What about amenities like doctors, dentists, and retail shops? There is so much to take into consideration.
How Can You Lower The Price You Pay?
We’ve already touched on the factors that come into play for house prices. The location is an important one. From Shoreditch to Finsbury Park, London is a large area and you likely want to live in a nice neighbourhood. With good schools and decent access to work. Don’t get downhearted if an area you fall in love with is simply too expensive. Look for someone else on the same tube line or slightly further out of the centre. You could also think about whether you need all the bedrooms or could drop down a reception room or bathroom.
What About Renting?
Maybe renting is more along your lines at the moment. The average rent paid in London properties is just over £1650. This has increased by 3% in the last twelve months. If you are able to get a mortgage on a property, then you could get a decent one paying back that amount per month. It might be worth trying to save enough money for a house deposit. That way, the money you are spending every month, you’re actually using for yourself, rather than someone else’s mortgage through renting.
The easy way to make your home look as though it is worth more to sell.
Don’t Forget The Extras
You’ve got to remember the extra you’ll need to pay for when you’ve moved in though. Council tax on a band E property in Tower Hamlets is £1,701.85 a year. You’ll also have utility bills, insurance premiums and the other cost of living expenses to pay for. Stamp duty on the average London house price would put you back a further £8,350. Plus you’ll want to include some of your own personality in your new home, making alterations and decorating. Maybe you’ll want to install that herringbone flooring you’ve been eyeing up for a while. Consider these extra expenses when you’re buying a property.
London has many beautiful parts and lots of us would like to own a property there. How do you even start when moving to a new city? Just crunch those numbers and ensure you are in the best position to buy the house you want. Don’t be afraid to look elsewhere and take your time trying to get on that ladder.
