Buying homes in any part of the country can be a tricky and time-consuming process, but a London property search is likely to be particularly problematic.
The shortage of housing in the capital, high demand from overseas and continually rising prices make identifying affordable properties in the right area difficult. But there are a number of steps you can take to help ensure you are prepared.
To begin with you should do some research into market trends. London is a large city and prices and demand do not move in the same way across all the boroughs.
You will be able to access Land Registry data to find out information on things like actual selling prices and the number of properties sold in an area, while housing market surveys published by lenders and industry bodies will tell you things like the relationship between asking and selling prices.
All this data will help you identify areas that are likely to benefit from price rises in the future and give you a better chance of making a profit on your home purchase.
There is, of course, more to choosing a house or apartment than simply facts and figures – and much of it depends on whether you are looking at investment properties for sale or searching for a home.
If your intended purchase is solely for investment purposes and you intend to rent it out, the important thing is to identify a target market and find affordable properties in the relevant boroughs.
For example, if you hope to make money from London’s sizeable student population, you need to identify areas that have good transport links to the many university campuses and relatively low prices. If this is your target market, you should be looking at properties with the maximum number of rooms to let.
However, if you believe the greatest profits are to be found in the professional sector, you should hunt for properties in areas within easy travelling distance of the City and other areas where there are lots of offices.
The type of property you are looking for will also be very different. Upmarket houses with the potential to be family homes, mansion houses divided into flats and modern apartment developments should all enter your thinking.
While standard estate agents are a good starting point for finding student housing, a specialist property company such as Residential Land may be a better place to begin a hunt for an apartment complex suitable for renting to professionals.
If you are searching for a home to buy in London, location will also be close to the top of your list of priorities – and not just in terms of relative prices and resale values in different areas.
The first thing you will want to ensure is that there are good transport links to work, or perhaps even that you can walk to the office. But you should also consider things like proximity to shops and schools – if everything you need is within ten minutes then the property passes the first test.
Don’t forget to think about the unsavoury side of life when considering where to buy. Take a look at the local crime figures, as this will have an impact on both the cost of insurance and your quality of life.
Local estate agents with a thorough knowledge of the market in their area are a good starting point when buying a home in London, but it is also well worth looking at some of the many property websites that cover the capital.
