In London, the fall in house prices can reach -15%.

London

As the effect of Brexit deepens, the housing market in England continues to slow down. While prices are soaring in some northern cities, their decline is increasing in the south, particularly in London.

The Brexit effect is still being felt on London property prices. In some parts of the British capital, the fall is estimated at 15%, according to the British daily The Guardian, which cites one of the largest real estate networks, Your Move. This is the case for houses located in South London and more precisely in one of the Greater London districts, Wandsworth. Their average price has risen over the past two months from £805,000 (€906,430) to £685,000 (€771,378).

Another example is the Southwark district, still in the south of the capital. Over the last twelve months, the average house price has fallen from 666,000 pounds (nearly 750,000 euros) to 585,000 pounds (about 659,000 euros), a decline of just over 12%. These two districts were known, according to The Guardian, to have long been examples of real estate speculation in the south of the country, before seeing their prices fall sharply in recent years.

After a decline of 1.8% in 2017, a decline of 2% to 3% in London prices is anticipated by real estate experts. The purchasing power of British households has suffered in recent months from a sharp rise in inflation driven by the rise in the price of imported products, due to the fall in the pound sterling since the British decision to leave the European Union in the referendum of 23 June 2016.

In contrast to this generalized decline, the north, and more precisely the northwest, of England is doing better than resist. Some cities or regions are experiencing spectacular growth. This is particularly the case for Blackburn, which has recorded the strongest increase in the last twelve months: +16.4%. Other regions in the northwest, such as Greater Manchester or Merseyside, a metropolitan county in England, posted increases of 4% and 8% respectively. As a result, on a national level, prices fell by 0.6% year-on-year but seem to have risen very slightly last month: +0.5%. To be continued.

First time homebuyer: 5 questions to ask yourself before buying

apartment (books and tea cup !)

What are the questions to ask yourself to make a successful first purchase of an apartment or house? It’s not easy to find your way around when you are a first-time buyer (person who makes his first real estate purchase). Here is a guide to the first purchase of a home based on 5 questions to ask yourself before buying your first apartment or house.

1. Is a purchase more financially interesting than a rental?

Renting is not always “throwing money out the window”, the first thing to do before making your first real estate purchase is to compare the purchase and rental. You can use this purchase / lease comparator for this purpose. It is necessary to keep your home long enough for it to be more profitable than renting.

2. Is my geographical location stable?

The acquisition of a home is only financially attractive compared to a rental if you stay there for enough years (the average is currently close to seven years). However, the world of work requires more and more geographical mobility. Are you sure you will stay more than six years in the apartment or house you want to buy?

3. How many years do I plan to keep the property I bought?

If you have a risk of leaving this property after a few years, will it be possible for you to rent it easily and thus transform your purchase into a rental investment? Can you easily resell it at a price close to your purchase price? Please note that as a general rule, you should never buy for less than 6 years. This period can be extended to 8 or 10 years during a period of falling prices. In some cities where prices are much higher than rents, this limit may exceed 20 years.

4. Are housing prices affordable?

While it is almost impossible to predict the low point of property prices, it is quite easy to know whether prices are overvalued or undervalued at the time you want to buy. For example, by comparing the current level of house prices with their historical data (for this, go to online real estate sites, such as for-sale). The more you buy at a time when real estate is expensive, the longer you will have to keep this property to make a good deal compared to a rental or simply to resell without too much loss once all the costs have been deducted.

5. Is my budget enough to buy the type of property I need?

Defining your needs in the short and medium term and the budget you can spend on your first purchase of a house or apartment is an important step. For example, this simulation of borrowing capacity can be used. To know how to buy an apartment or elsewhere, having a little personal contribution from your savings is very useful and it allows you to pay for your main residence with a smaller mortgage.