Buying a home, isn’t like any old type of shopping and you won’t find any buy one, get one free offers. But that might change as London estate agents are trying every trick in the book to get buyers to part with their cash. Some agents are even offering free cars (real ones, not toy ones) worth nearly £20,000 to get the stagnant market moving.
It’s not just cars that are on offer, iPads, expensive music systems, even stamp duty subsidies worth £153,000, are up for grabs. So, the once mighty London property market with its seemingly never ending rising prices, has now (according to Garrington Property Finders) become a “burnt out core” (bit dramatic). It’s not quite the post-apocalyptic drama that a “burnt out core” suggests and the average property will still set you back around £500,000.
However, developers are genuinely concerned that they aren’t shifting as many properties as their drawing boards predicted and they’re doing their best to entice potential buyers. It’s estimated that there are around 59,000 flats under construction in London, but only 6,000 are sold every year.
Experts have blamed the rise in stamp duty for the decline with some parts of London seeing a 41% drop in property sales. But it’s not just London, house price growth throughout the country has slowed to 3.5%. The average house price has also fallen for the last two months – by 0.3% in March and 0.4% in April.
Of course, every cloud has a silver lining and the side effect of slowing house price growth, actually means that buying a property could be within reach – which is good news indeed. So, if you’re saving for a mortgage or about to step up a rung on the property ladder and want to move your mortgage, then let us help you – we’ve got lots of advice and tips in our mortgages hub And once you’ve prepped, packed and pitched up in your new abode, make sure you protect it with appropriate home insurance – it’s your castle after all.