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.

 

7 WAYS TO CHEAPLY UPGRADE AND UPSCALE YOUR SPACE

Ever looked inside a home and lifestyle magazine and seen the exquisite homes and expensive looking decoration and wished that your home could look like that. Well, it can! And it isn’t too costly either.

We’ve curated and listed below our top 7 tips for upgrading and upscaling your space:

TIP #1: Clean or Conceal the clutter

First things first we’re the realist… clean the clutter. To achieve that expensive look, we recommend either cleaning/detoxing the unnecessary clutter or hide it with a good storage system that could easier be decorated with a nicely textured cloth or key ornaments.

TIP #2: Paint the floors, not just the walls

Try the unconventional method of painting the floor and not just the walls. Some of the most expensive looking spaces have the best floors. Try a monochrome pattern on the floor, ie. black and white vertical lines.

TIP #3: Organise & Conceal wires

More concealing! A lot of the times we have many little wires all over the floor, hanging on the wall and they’re basically everywhere. They don’t do your living space much justice, to be honest. So hide them! And not just a basic tape work; but branch into the various DIY projects the internet has to offer, such as hiding the wire in boxes or disguising them in the finishing on the wall.

TIP #4: Upgrade switch covers

I’m honestly trying to avoid using the word conceal again, so instead, I’ll use a disguise. Disguise those old light switches with fancy new covers. Or better yet, spray paint or just liquid paint them with the colour of your taste in a metallic finishing. That ought to do the trick!

TIP #5: Retouch & Upgrade hardware

To continue the topic of disguising, why not disguise the hardware around your home also. Switch those old looking door handles to crystal door knobs; they automatically add an element of elegance and luxury to any space. Also, the hardware at the corner of the doors, your kitchen counter, your bathroom floors spray paint those in a waterproof stainless steel gold/silver colour as they will also automatically upscale any space.

TIP #6: One Statement Piece

Most luxury homeowners have that one statement piece that they love to brag about, and why’s that? Well, it might be due to the fact that it actually is a statement piece. Now you don’t necessarily have to go completely out of pocket; but if you’ve got a liking for a certain style of artwork, why not get it blown up in your local photography shop to the largest size and have that one painting/artwork displayed in your living room. That will definitely make a statement.

TIP 7: Simplify your room styling

Now for our final tip. Simplify your room styling.

In order to get that expensive, yet simple living look, don’t do too much. You don’t need to have so many pretty ornaments or too many metallics in one room. Space it out across your living space and make every room a statement.

————————————————————————————————————————-

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 Home Improvement series.