First-time buyers are priced out as number of flats sold in London tumbles

London’s flats have decreased in sales as the prices are out of reach for ordinary first-time buyers, according to new research.

According to figures from Home.co.uk, which analyses data from the Office for National Statistics and property portals, which the number of apartments sold in the capital fell by 47pc in July compared to 12 months previously.

The number of detached properties sold in London fell 5pc in 12 months to July this year, with sales of terraced houses down 8pc. This comes amid a general slowdown in the level of transactions across the country, and particularly in London.

According to the Land Registry, the average price of a flat in London increased by 3.9pc in the 12 months to July to £434,587. The price growth of flats is outstripping all other property types across the country, partly due to a lack of supply, being led by the rises in the capital.

With the slowdown in sales signals that affordability has been crunched and many first-time buyers, who would typically purchase these properties, are sitting on their hands and waiting for a correction in prices. 

While the Government’s Help to buy scheme has allowed many first-time buyers across the country to get on the property ladder with a 5pc deposit, the take-up in London has been far lower. The threshold of £600,000 means that many newbuild properties are too expensive to qualify and analysis by the BBC earlier in the year found that while Help to Buy is used to buy one in three new-build homes outside London, in the capital it is just one in 10.

Other natural buyers of these properties, buy-to-let landlords, have also been squeezed by changes to the tax regime and many are sitting out buying opportunities or selling up their portfolios.

Lucy Pendleton, the founder of estate agency James Pendleton, said: “Solid numbers of people are showing some reluctance at current prices and signaling to all the other market participants they can’t transact unless they come back down to earth.” 

A correction could soon be coming: data from Acadata and LSL property services found that prices in London have fallen the most since the financial crisis. Average property values have fallen 2.7pc in the year to September, the most since 2009.

 

5 THINGS TO LOOK FOR IN A FAMILY HOME

When hunting for a nice property as parents there are things you’ll be keen on looking for in your new home. So are obvious, such as schools, gardens and the area. But here are some of our top 5 alternative things to especially look for in family homes.

TIP #1: If no gardens, look for parks

Ideally, for a family home, you’ll be looking for a place with a good size garden so that your children have the option of playing outside of the house. But as there is a demand/increase in flats/apartments, families are just about missing out on gardens. So if you are one of those families, we recommend that you look into a property that is easily accessible to the local park, so that your children still are able to play outdoors.

TIP #2: Family friendly facilities and recreation centres

The rising use of technology means that this generation of children already have their recreation sorted on mobile devices. However, if you’re looking to discourage the over the use of technology as recreation for your children, then look for the possibilities of having recreation centres, family friendly cafes and facilities that are local to your forth-coming family home.

TIP #3: Well insulated homes

In order to decrease the number of runny noses and ticklish coughs, we recommend that families look for properties that are well insulated or have a good central heating system in the home, as this will help keep the warmth in during those colder miserable days that we tend to have in the UK.

TIP #4: A good kitchen

When we were looking for our family home, one thing my parents especially my mum looked for was a good kitchen and that always stuck with me. A sizeable kitchen with a well-tiled wall was on the top of her list, as families tend to do more cooking throughout the weeks that the walls become accustomed to the steam, heat and smells. So we recommend looking for a kitchen with well-insulated walls, a breathable space and also a good/replaceable air vent.

TIP 5: Good structure/sizing

Regardless of the type of property, we suggest a good sized space that will allow for children to freely express themselves throughout the home. This will decrease the number of inconveniences and also avoid that claustrophobic feeling of having furniture/storage space crowding up the place.

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Also if you have any tips that you could recommend to us, share them in the comments and we’ll be highlighting them in our upcoming articles in the ‘Family’ series.