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Whichever paper you read or TV channel watch, the message is clear: London property market is out of control.
I have recently been advising someone whose landlord demanded an increase of more than 20%. In that particular case, the landlord quietly backed off - for now.
This prompted me to look at my near future and I realised that it won't be London.
London has always been expensive. When I first moved to the Capital in 1997 I remember viewing countless of dodgy rooms and bedsits at extortionate prices. However, something was different those days: sales prices were actually dirt cheap.
Take my North London suburb. In 2000, a one bed cost about £100k-£125k to buy and rental prices started @ £170 per week. 15 years later you'd be looking at anywhere between £250-£350k to buy and around £275 per week to rent.
Sales prices have risen far more than rents so why the fuss? It's very simple. Many Londoners simply aren't earning that much more than they were in 2000. I for one was actually earning more all those years ago!
Sales prices are high for one reason and for this reason only: all time low interest rates. Yes, some areas may well be affected by foreign buyers etc. but that doesn't really affect most places.
Now, what to do about it?
Personally, I am about to relocate. I have given my notice on my London flat and I'm just finalising my move up north. I have found a nice two bed terrace house about two minutes from the station in Glossop for less than £600 pcm. My salary in Manchester will be around £25k. Yes, not much by London standards but money does go much further up there.
When visiting Glossop I was delighted to rediscover a £2 pint, even lagers were less than £3. Subway and Dominoes were both cheaper than in the Capital and even the travel card will cost me less than my zone 1-3 card in the Capital.
Remember, you always have choice. I fully agree that relocating for a family would be much harder. However, I am looking forward to my new life in Derbyshire and not having to hand over £1,000++ to my landlord every month!
I have recently been advising someone whose landlord demanded an increase of more than 20%. In that particular case, the landlord quietly backed off - for now.
This prompted me to look at my near future and I realised that it won't be London.
London has always been expensive. When I first moved to the Capital in 1997 I remember viewing countless of dodgy rooms and bedsits at extortionate prices. However, something was different those days: sales prices were actually dirt cheap.
Take my North London suburb. In 2000, a one bed cost about £100k-£125k to buy and rental prices started @ £170 per week. 15 years later you'd be looking at anywhere between £250-£350k to buy and around £275 per week to rent.
Sales prices have risen far more than rents so why the fuss? It's very simple. Many Londoners simply aren't earning that much more than they were in 2000. I for one was actually earning more all those years ago!
Sales prices are high for one reason and for this reason only: all time low interest rates. Yes, some areas may well be affected by foreign buyers etc. but that doesn't really affect most places.
Now, what to do about it?
Personally, I am about to relocate. I have given my notice on my London flat and I'm just finalising my move up north. I have found a nice two bed terrace house about two minutes from the station in Glossop for less than £600 pcm. My salary in Manchester will be around £25k. Yes, not much by London standards but money does go much further up there.
When visiting Glossop I was delighted to rediscover a £2 pint, even lagers were less than £3. Subway and Dominoes were both cheaper than in the Capital and even the travel card will cost me less than my zone 1-3 card in the Capital.
Remember, you always have choice. I fully agree that relocating for a family would be much harder. However, I am looking forward to my new life in Derbyshire and not having to hand over £1,000++ to my landlord every month!
xx
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