For many people, London property serves as a sort of benchmark for the economy at large. In connection to topics like Brexit and the cost-of-living crisis, London house prices are in the news most days right now. How much stock should you put in the headlines for your own property sale? Here’s some insight from our experts:
The local market vs the market at large
“Each patch of London has a unique blend of amenities (schools, shops, parks, theatres, transport, sports arenas etc.) which create its distinctive community.”
The average house price in London is a bit deceptive, as each local market is unique. In some areas, one-bed homes are in high demand, some areas are more family home-oriented. In some areas, new-build investments perform spectacularly well, while in other areas period homes are prized.
To make it all more complex, many London buyers expect to move to different areas to find the exact home they want. According to our 2023 London Report, “In 2022, more Foxtons applicants than ever before went on to buy or rent in a different office patch to where they registered.”
At Foxtons, our local teams aren’t limited to their local patch. Our Negotiators work across London to find the best suited buyers looking for property like yours. Then, we use our extensive local market knowledge to show them what makes your home stand out.
The true value of a valuation
When you hear news about London house prices, it is important to understand your local market may differ than the market overall. At the same time, you’ll probably need to price your property realistically to the current market. Our Chief Sales Officer at Foxtons, Jean Jameson, said:
“If you need to sell a home now, you need to be flexible on price. However, this is just as true for the seller in your onward purchase as it is for you. As always in London, you can be realistic about your house price and still generally expect your property value to have increased from when you purchased it, however it’s incredibly important to talk to an expert about the right price, because every situation is unique.”
Finding your realistic selling price: see how your property compares to the local market by booking a property valuation. Foxtons have been researching and analysing the London market for decades, so we’ll be able to advise you the best price for your property in this unusual market.
Thinking about your onward move
It’s the age-old adage: you make money when you buy.
“The discount on the house being sold will usually be less in monetary terms than the one purchased.”
~ The London Report, 2023
Many people who are selling a property are looking to buy as well. So, when you read headlines about London house prices, you should consider both the property you’re selling and your onward purchase.
In the last 20 years, house prices have generally increased in London. In fact, when the London sales marketing softens, you’ll usually see less of a discount in property you sell than the savings on the property you purchase.
From our London Report, “The age-old adage that you make money when you buy, not sell, will be particularly important this year with those looking to upgrade set to secure an even bigger discount.”
Do you know what you can you afford to buy? When you have an up-to-date valuation, it’s a good idea to talk to a mortgage broker about what you can afford to buy. Buying and selling in a property chain takes careful timing, so starting with expert advice will help you get it just right. You can book a free consultation with our partner firm of mortgage advisors, Alexander Hall.
Get ready, get set…
According to research by Which? 30% of property transactions fall through after an offer is accepted. Speed is key to sealing the deal. So in a market like this, it’s especially important you get yourself in a position to proceed.
The best thing that both buyers and sellers can do to prepare is to talk to solicitors as soon as possible. You’ll thank yourself later if you have a solicitor get all your paperwork in order before you’ve accepted an offer. With Foxtons panel of independent firms, Conveyan, you’re given a Sale-Ready Pack right away. With this pack, they can prepare all your information, so they may even be able to get the contract out the same day you receive an offer on your property.
The local market vs the market at large
“Each patch of London has a unique blend of amenities (schools, shops, parks, theatres, transport, sports arenas etc.) which create its distinctive community.”
The average house price in London is a bit deceptive, as each local market is unique. In some areas, one-bed homes are in high demand, some areas are more family home-oriented. In some areas, new-build investments perform spectacularly well, while in other areas period homes are prized.
To make it all more complex, many London buyers expect to move to different areas to find the exact home they want. According to our 2023 London Report, “In 2022, more Foxtons applicants than ever before went on to buy or rent in a different office patch to where they registered.”
At Foxtons, our local teams aren’t limited to their local patch. Our Negotiators work across London to find the best suited buyers looking for property like yours. Then, we use our extensive local market knowledge to show them what makes your home stand out.
The true value of a valuation
When you hear news about London house prices, it is important to understand your local market may differ than the market overall. At the same time, you’ll probably need to price your property realistically to the current market. Our Chief Sales Officer at Foxtons, Jean Jameson, said:
“If you need to sell a home now, you need to be flexible on price. However, this is just as true for the seller in your onward purchase as it is for you. As always in London, you can be realistic about your house price and still generally expect your property value to have increased from when you purchased it, however it’s incredibly important to talk to an expert about the right price, because every situation is unique.”
Finding your realistic selling price: see how your property compares to the local market by booking a property valuation. Foxtons have been researching and analysing the London market for decades, so we’ll be able to advise you the best price for your property in this unusual market.
Thinking about your onward move
It’s the age-old adage: you make money when you buy.
“The discount on the house being sold will usually be less in monetary terms than the one purchased.”
~ The London Report, 2023
Many people who are selling a property are looking to buy as well. So, when you read headlines about London house prices, you should consider both the property you’re selling and your onward purchase.
In the last 20 years, house prices have generally increased in London. In fact, when the London sales marketing softens, you’ll usually see less of a discount in property you sell than the savings on the property you purchase.
From our London Report, “The age-old adage that you make money when you buy, not sell, will be particularly important this year with those looking to upgrade set to secure an even bigger discount.”
Do you know what you can you afford to buy? When you have an up-to-date valuation, it’s a good idea to talk to a mortgage broker about what you can afford to buy. Buying and selling in a property chain takes careful timing, so starting with expert advice will help you get it just right. You can book a free consultation with our partner firm of mortgage advisors, Alexander Hall.
Get ready, get set…
According to research by Which? 30% of property transactions fall through after an offer is accepted. Speed is key to sealing the deal. So in a market like this, it’s especially important you get yourself in a position to proceed.
The best thing that both buyers and sellers can do to prepare is to talk to solicitors as soon as possible. You’ll thank yourself later if you have a solicitor get all your paperwork in order before you’ve accepted an offer. With Foxtons panel of independent firms, Conveyan, you’re given a Sale-Ready Pack right away. With this pack, they can prepare all your information, so they may even be able to get the contract out the same day you receive an offer on your property.
To sum it up
In an interview with Zoopla, our CEO Guy Gittins said this to those who are selling homes in London:
“The joy and benefit of being in the right property for you and your family, in my opinion, far outstrips any financial gain on a 5% trade if you’re trying to play the market. Very often people will miss that moment anyway because nobody can call the top or bottom of the market, it’s very difficult. And when you’ve stayed in a property for over 10 years, these small movements in prices year-to-year become totally irrelevant.”
So, even if reports on the London market have you second guessing your plans to move, it’s still worth looking into. We recommend you:
- Make use our local office’s expert market insights to understand what’s happening in your area.
- Book a valuation to see your home’s current property value.
- Take the valuation to a mortgage broker, so you can understand what you’d be able to afford.
- Talk to a solicitor and get “Sale Ready” for a smoother transaction.
