It is well known that London has some of the priciest property in the world, with an average house now costing upwards of £459,000 (according to the Office of National Statistics) – an 18.7% rise on last year’s figures.
While this is bad news for those looking to get on the property ladder in the capital, if projections are to be believed, those who already are will be watching their stock rise further still over the coming years.
New research carried out by estate agent eMoov.co.uk suggests that those with a house that’s valued around this £459,000 average will see their property increase in worth by a staggering £109,000 annually, hitting the million pound by 2019!
With house prices on the rise across the country at the moment (as illustrated on the graph above), the property market is beginning to experience another boom following a couple of years of slow growth, with incentives such as the Help to Buy scheme getting first timers on the ladder.
While the central boroughs of London are still proving too costly for most, those turning their attention to the outer areas are snapping up property at an alarming rate.
As is the nature of the boom and bust of the property market, some are suggesting that the escalating house prices are already growing out of control, and finding a buyer if you decide to move away could prove difficult in the coming years.
Property values are rising at a far higher rate than the average London salary (£37,000), which doesn’t bode well for the future, as the number of first time buyers unable to make a purchase begins to increase.
Experts, such as eMoov CEO Russell Quirk, believe that this could lead to another dip in the market, with foreign investment in London residential property becoming more likely as buyers are priced out.
In the most expensive areas, such as Kensington and Chelsea, sales and even viewings are significantly down, with many turning their attention to the outer suburbs and satellite towns.
So while projections for a new raft of London millionaires may not be completely accurate, owning property in the capital remains a lucrative investment.
London homeowners really looking to take advantage of their prime real estate should look to add value to their existing property. The best way to do this is to extend your home with a loft conversion.
Whether an extra bedroom, bathroom, home office or recreational space, an additional room at the top of your home can increase the value of your home by almost 25% in some instances – not to mention giving you a luxurious new space in which to relax or have people to stay.
Loft conversions don’t just add value and extra space however; they also offer a cost-effective alternative to buying a new house, which, as we’ve seen, gets more and more expensive in London each year. If your family is growing or you’ve recently become self-employed and spend a lot of time working from home, moving to a bigger house might not be a reality, so extending upwards could be the perfect solution.
Here at LMB, we specialise in carrying out high quality loft conversions to homes across London and beyond. From design through to sign-off, our expert team are on hand to tailor a conversion to your exact specifications, no matter the size and scale.
Get in touch with LMB Group today for more information.