Despite continuing uncertainty and a drop in the value of the pound, the EU referendum vote has yet to have much impact on the vast majority of house prices in the capital. While growth stopped over the summer after the vote, it picked up again in September. The greatest impact by far has been upon top end properties, with those worth in excess of £1m seeing a price drop of 5 percent compared to a year ago. Other areas have seen even greater falls, with the average home’s value in West Kensington falling by 12%, while there has been a 10% drop in Chelsea.
However, for most Londoners, moving house is no more affordable than it was at the start of this year. In fact, the average house price in London increased from £457,466 to £487,649 from January to September. Even at the top end, house prices may yet bounce back, as foreign investors take advantage of the weak Pound to buy up high value real estate.
Once Brexit negotiations begin in 2017, there could be a great deal of volatility in the markets. However, it’s very likely that in most parts of London, house prices will continue to rise. With prices so high in central London, first time buyers are having to look further and further afield for affordable properties. Ironically, this demand is driving up prices fast in many areas in outer London. Brent, Kingston and Ealing will be the next London Boroughs to reach over £500,000 in terms of average house prices, with 4 more following by 2020.
While London house prices are likely to continue to grow, this growth may actually lag behind the rest of the southeast of England, making moving to the commuter belt a less affordable option for anyone thinking of swapping the city for the countryside.
With house prices sky-high across the capital, upsizing can be a challenge. The higher the prices go, the more stamp duty you’ll have to pay, and the harder it is to secure a mortgage. With stamp duty of £15,000 on a property worth £500,000, on top of estate agent fees and the difference between your current property and a larger one, it’s easy to see why improving your current house rather than moving is an attractive option.
An extension or loft conversion could add lots of space and value to your home, and more than makes up for the cost. According to a study by Nationwide Building Society, a loft conversion can add around 20% to the value of your home. This equates to almost £100,000 on an average home in the capital, with much larger returns in pricey inner London. This makes expanding your home a wise investment as well as cheaper and easier alternative to moving to a larger property.
Landmark Lofts specialise in bright, modern and intelligently designed loft conversions and extensions, built to provide you with as much extra space as possible. Contact us for a free consultation and discover how a loft conversion or extension could make you fall in love with your home again in the year ahead.
Landmark Lofts is part of the Landmark Group - the only group in London specialising in the project management of loft conversions, extensions and refurbishments to include a Chartered Building Company (CIOB), Chartered Architectural Practice (RIBA) and to be regulated by the Royal Institution of Chartered Surveyors (RICS). The Landmark Group specialises in the project management of loft conversions, extensions and refurbishments.