Six things buyers should consider post Referendum

Many people have been asking us what the post Referendum London property market is like. TK International can report it is fluid and healthy, with low mortgage rates and an ultra competitive lending market. The capital’s property market is, however, always changing and the referendum result has reshaped buying conditions in London.

North West London estate agents TK International has produced the following six tips to bear in mind when considering purchasing a post-Referendum property.

Transport changes – 2016 has seen a number of changes to London’s public transport system, with London’s night Tube being rolled out across the system and the launch of Crossrail in 2018 creeping ever closer. These enhancements to the transport network not only make it easier to travel around London, they also add value to property, with Crossrail’s land and property director, Ian Lindsay, claiming the route will add £5.5 billion to property values. Expect to pay a premium in London neighbourhoods where Crossrail stations are set to open.
Many property buyers prefer to travel on two wheels so a new network of seven ‘Quietway’ cycle routes launched in London should be of interest. The routes take cyclists down cobbled streets, back roads and scenic cycle lanes for a safer journey. One route takes you from Regent’s Park to Gladstone Park, passing through Primrose Hill and West Hampstead along the way.

International competition – Some property analysts are reporting a 50% increase in foreign purchasers looking to buy London property post Referendum, especially homes at the premium end of the spectrum. Many purchasers are taking advantage of the plummeting pound since the referendum, meaning they can buy a lot more for their money. Be aware that you may be competing with a number of global purchasers when making offers.

Gentrification – We all know London is an expensive place to live and in the past 20 years, Halifax house price indexes show that property values in the capital have multiplied by almost six. Despite a levelling out of property values, there are still pockets of London where prices are rising – many of them are just starting out on their journey of ‘gentrification’. Those hoping to buy with appreciation prospects should look out for early signs of transformation. As well as the traditional indicators – like coffee shops and a Waitrose moving in – be vigilant for more urban markers, such as an arts centre, rooftop bars, secret cinemas and co-working spaces.

Choosing a High Street agent – Buying a home is likely to be the biggest purchase you will make, so selecting a well-established, trusted local estate agent is vitally important. They will know a local property market inside out, and will provide face-to-face reassurance every step of the way. Physical agents on your High Street are also able to offer first refusal on new properties that haven't even been listed online yet and will steer a purchase to completion, paying close attention to the chain after an offer is accepted.

Mortgage availability – The vote to leave the EU dovetailed with the Bank of England’s decision to drop interest rates to a record low of 0.25%. Many thought that interest rates would rise if the country voted ‘out’ but the reverse has happened, with mortgage rates and lending conditions improving throughout 2016. Speak to an independent mortgage advisor to confirm how much you can borrow - the mortgage market is ultra-competitive and lenders are keen to do business. It might surprise you how much you can afford to borrow.

Strong buying position – If you are planning on selling your home and have started researching your next move, then it is advisable to put your home on the market now, as post Referendum competition is strong. Having your current home under offer when you start your property search for a new home is even better. Cash buyers and those with no chain behind them, however, will be in the strongest position to buy, especially when multiple offers on the same property occur.

If you would like further advice on strengthening your buying position in the post Referendum property market, or if you have a house to sell in Hampstead or the surrounding areas and need a valuation, please contact TK International today.