You would be forgiven for thinking that Nobel Prize winner Bob Dylan was talking about the UK property market when he sang, "the times, they are a changin'". As an agent with over 20 years experience of the E14 and Canary Wharf market, I have seen it all! But one overarching fact is the rise of local property prices, which have seen a significant increase of 55% in the last decade.
Figures show that moving up the property ladder, or getting on it in the first place, is not that easy. However, there are certain choices you can take to make the process much smoother, particularly if you listen to advice from a good agent. The young person’s dream of owning their own property is still very much within reach.
Compromise is key; sometimes it is a good idea to take stock and really think about what it is that you want from a property. E14 is popular with homeowners and tenants, which indicates that location is still the number one factor for people moving home. Yet in my experience, some people are willing to look further afield to find a cheaper, more suitable property.
If you are already on the property ladder, moving up it is not as arduous as many initially think. Increasing house prices can actually benefit homeowners like you, assuming that you have paid off a fair amount of your mortgage. Average property prices in E14 are now worth £472,200, which means if you bought the property 10 years ago, it would have increased by an impressive £167,000.
Some of you will be tenants who are not yet on the property ladder, but don’t worry as there is still hope. Mortgage lenders have started to loosen their purse strings, with many of them offering up to 95% mortgages. The government also offer several schemes making it easier for first-time buyers to purchase a home, including Right to Buy, shared ownership and the Help To Buy ISA.
Landlords have reasons to be cheerful, with an element of younger people in E14 choosing to rent rather than buy. There are certainly benefits to renting, including the ability to simply call the landlord if there are any issues around your rental home, allowing you to save on large repair costs. The lifestyle of a renter also provides flexibility, which is very important to some people.
Landlords can enjoy even more good news as the demand — and prices — for rental accommodation continues to rise. The knock-on effect also means higher-value properties in E14, which also benefits homeowners. While this is ultimately positive news, it does not negate the fact that there are tenants with ambitions of owning their own home in the future, and excessive rental hikes need to be tampered so they are still able to save for a deposit if they so wish.
It is harder for young people to save for a deposit in an age where Apple launch a brand new product every six months, or the latest HDTV is readily available. Renting is a choice, and we are developing a mindset more akin to the Europeans with regards to it. In fact, the fascinating figures show the percentage of households privately rented in E14 have risen from 18.8% in 2001 to 35.1%, according to the last census.
Whether you’re a homeowner or landlord, if you would like a chat about the E14 property market or are interested in receiving a free market appraisal of your property, I would love to hear from you. Just pop in and we can discuss all things property.
If there is a topic you would like me to discuss, or give you a second opinion on a property investment you may be looking at, please EMAIL ME HERE
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Thanks for reading and I hope you are enjoying my Docklands property blog.