Whether you are looking to purchase your first ever property or trying to find a better deal, the property market in London truly has a life of its own, compared to the rest of the United Kingdom.
You can clearly see how different the prices are by simply scrolling down property at 1newhomes.com.
Yes, London property prices are notoriously high.
They have been rising steadily over the last ten years or so and have made it nearly impossible for many potential buyers to own a home in the capital.
Add the enormous size of the city to it, and buyers are faced with a terrifying prospect when looking for housing in the British capital.
Nonetheless, London’s average asking price has recently dropped below £600,000 for the first time since 2015. This gives newcomers and those who live elsewhere, where prices can hold up better, huge opportunities to be able to afford to move to London.
Here is how much you need to make to get a mortgage for £400,000
Although lenders are generally willing to provide loans to property buyers, the amount of these loans may differ.
Most of them lend between 4 and 4.5x a buyer’s salary, depending on their individual circumstances.
Thus, if you are looking to purchase a property for £400,000 with a 10 per cent deposit (£40,000), your family income must be around £80,000 – £90,000.
In order not to make a mistake while doing your calculations, we recommend using an online mortgage calculator.
It will help you get an idea of how much you could borrow and what kind of deposit you need for a mortgage, but don’t rely too much on it: you will have to talk to your mortgage broker anyway to discuss your finances and available options.
Best places in London to buy a house under £400,000
Of course, looking for a property below that amount in the borough of Kensington and Chelsea wouldn’t be the brightest idea, since asking prices there just hit £1.61m.
The only borough in the capital that has an average property price under £400,000 is now Barking and Dagenham (£314,209.00). However, it doesn’t mean that it isn’t possible to find a house for that amount in other Outer London boroughs, such as:
● and others
Properties below £400,000 on the market
Gibraltar House, Connaught Road, London NW10
This stunning low rise Gibraltar House in northwest London was built in the 1930s!
The interiors here have been refurbished to complement the aesthetics of the mid-century building, and the green communal garden creates a pleasant backdrop for this second-floor flat.
Stocksfield Road, London E17
Here you will find cast concrete countertops with added coloured chips and handles installed in the customised kitchen, pink square tiles in the bathroom, and multi-layer cabinets built throughout, which brings a playful touch to the space altogether.
Panther House, Leytonstone, E11
This gorgeous one-bedroom flat features elegant and modern furnishings, open-plan layouts and light interiors. Additionally, it offers plenty of space in the reception and bedroom.
Ikon, Purley Way, CR0
Ikon is a complex of new homes built in Croydon, about 10 miles away from London city centre.
The area is quite attractive to house hunters looking for value-for-money properties, as it has easy access to public transport links.
This one-bedroom flat is finished to a high standard and features an open-plan kitchen.
For one of London’s busiest and most popular neighbourhoods for potential property buyers, a home worth £400,000 in Islington is rare and generally pretty small.
However, this one-bedroom flat on a quiet residential street in Islington is definitely one of the finest on the market today and deserves having a look.
Tips for buying a property in London
In conclusion, we would like to provide you with the final tips for purchasing a house in London.
● Determine the area you want to live in. London is huge, so spreading your search area will cost you valuable time.
● Don’t follow trends. One of the oddities in the London property market is the difference in prices between one area and, sometimes, the postcode next door.
● Talk to a local agent. Establishing a relationship with a local agent can bring you a few opportunities; for instance, the agent can alert you to a new property before contacting other house hunters.
● Consider travelling to work. Preparing for your commute to work could have a positive effect on your budget. The closer you want to live to London city centre, the more expensive properties are.
● The importance of your deposit. A long and patient approach to house hunting in the British capital is a great strategy. If you feel like your deposit might be higher, take your time with the purchase – spend some time saving up and be prepared to make some compromises along the way. Once you get your dream house in London, it will have been worth all these sacrifices.
Supplied by property at 1homes.com