The property market in London is one of the hardest to navigate in the world. Do you buy or rent? What makes a good asset to invest in? Where are the next hotspots with the best chance of growth? There is a lot to think about. Finefair Ltd can help. We have a lot of experience in the city and can advise clients. This can even include tips for property investment in Bexley and other popular spots.

A dramatic change

As you can see from the headline of this article, there has been a big change in the property market in London recently. New data shows that it is now cheaper to rent than buy a home in every borough in London. It is the first time in 13 years there has been the flip to make renting cheaper.

The figures show that on average it now costs £832 more per month to make repayments on a mortgage than it does to rent. This is due to a number of factors, including several rises in the base rate by the Bank of England. It is now the highest it has been since 2008. In turn it has been pushing up the rates for fixed rate mortgage deals.

In 2020 it would have cost an average of £49 more to rent in London than pay a mortgage. However, since then there has been big changes due to a wave of sales pushing up prices and the interest rate rises.

Best spots

It costs dramatically more to buy than rent in some parts of London at the moment. However, there are some locations where the gap isn’t as bad as the £832 average.

The best is Hillingdon. It costs £84 more to pay a mortgage here than it does to rent. For some that will be acceptable for the comfort of home ownership.

The top five also includes Barking and Dagenham (£161), Havering (£193), Bexley (£276), and Croydon (£367). All of these spots are in Outer London. If you are looking at property investment in Bexley or any of those other areas, we can help.

What will happen?

Experts are predicting that the situation will have an impact on house prices and the number of sales. More people will likely choose to rent because it is cheaper and mortgage affordability will be worse. It would likely mean fewer homes sell in 2023.

The hit to house values could be huge. The estimate is it may be as much as 12.5%. That is higher than the dip experts are predicting for the rest of the UK.

Talk to us about property investment in Bexley

Finefair Ltd appreciates the conditions are tough at the moment. It will make a number of people consider whether to buy or rent in 2023. Investors in particular might be in a tough spot. They may face the prospect of paying more on the mortgage than they make in rent. It would not be sustainable or good for the ROI.

If you are looking at options for property investment in Bexley now or in the future, we can assist you. We offer some wonderful services, including portfolio reviews and guaranteed rent. So, call now to speak to us.