According to real estate expert Nick Millican, the London property market has previously been uncertain and will be no different this year. Interest rates are expected to rise as the general election- expected in the autumn- looms.
To first-time home buyers, election uncertainty comes with good tidings as house prices have a four percent fall projection. With mortgage deals improving, Nick Millican expects them to drop further as the Bank of England cuts the base rate.
Buy if You Can
Last year’s statistics show first-time home buyers relied more on family support. According to Nick Millican, this trend will continue due to low prices. Latest research shows asking price discounts for London homes have improved from 2.1 percent to 6.1 percent. This is equivalent to 25,000 pounds.
Supply Drop for New Homes
As the demand for new homes increases, low supply will be experienced resulting in price hikes. Developers know this too well, and instead of selling, they are renting properties with the expectation that prices will go up. As Nick Millican comments, with renting costs projected to rise, many people will prefer living in cheaper satellite towns than London.
People have embraced remote working, making it easy to live further from the Tube. A place like Chiswick in Hounslow has seen a rise in tenants numbers compared to previous years. Nick Millican finally states that this trend suggests a growing preference for cheaper suburban areas over the bustle of London.