9th January 2015
Whether you’re planning a house move or want to invest in property in London, these tips on where and when to buy could put you ahead of the game.
The Buying Agents said 2015 will see increased momentum for the housing market thanks to the reform of stamp duty that will see buyers purchasing properties under £937,000 pay far less.
Henry Sherwood, managing director of the company, has set out his top tips whether it’s a family move, first-time buyer, or investor.
The stamp duty changes will make £1 million to £1.5 million properties, typically bought by families, more competitive. Properties in these brackets will now attract greater stamp duty and more ‘rung jumpers’ could start to strip out their London equity and move out to Surrey.
‘There will also be increased demand in central, orientated-areas such as Clapham where it is possible to purchase a suitable family home for under £1.5 million or Ealing where you can purchase a similar family home for less than £1 million with plenty of outside space,’ said Sherwood.
He added: ‘Many London homeowners will want to cash in on their properties and move to the country next year. The majority of these will want to buy around the M25 commuter hubs, with good transport links to the capital. Families who still need to get access to the City can however still be confident of getting the best of both worlds in suburban areas like Ealing and Hackney which offer more outside space at less than £1m.’
Prices in South London are already over-inflated thanks to the new Cross Rail route so first-time buyers should start to look towards North London.
‘We recommend that first-time buyers steer clear of Cross Rail routes with already over-inflated prices and look to North London, as most of the south section of the proposed Cross Rail 2 has already seen good growth,’ he said.
‘Southgate is a place to watch, with good infrastructure such as schools and transport links already in place and is the obvious Cross Rail 2 route.’
Buy-to-let will revert to focus on yield rather than capital growth again this year. In London, central locations are too high but there are still opportunities and there are bargains to be had outside of the capital.
‘The buy-to-let market will see a return to the fundamental principles of property investing, driven by yield as opposed to capital growth,’ said Sherwood.
‘For London investors, we favour areas outside of central London – where prices have already peaked and are beginning to soften – such as City Airport and Royal Docks in zone two and three.
‘The existing areas surrounding the proposed £1 billion Asian Business Port will see demand for investors as off-plan supply is currently limited. Regionally, Liverpool is still the buy-to-let hot spot, followed closely by Belfast, where prices are still -50% of peak and are only just starting to rise.’