Property prices have started dropping in London so for those who ruled out buying, due to affordability, it may be time to start looking again.
Recent reports show that property prices were down 0.5% in London in the last month, not a huge shift, but starting to go in the right direction at least.
The reason prices are starting to drop is largely being accredited to the tougher mortgage regulations that have now come in to affect. The practical implications of this meaning that, if you can still get yourself a mortgage, or got one agreed before the regulations changed, you will now have a lot more negotiating power on the prices properties are listed for too since you will be competing with less people.
We’ve been in a bit of a silly season recently with people offering more than the listed price on a first offer just to make sure they get the property as there was so much demand. With less people now able to get a mortgage however, for the lucky ones who still can, the power is now slowly starting to shift towards those trying to buy the properties rather than those selling. If you can get a mortgage and have been wanting to buy but couldn’t, now is probably the time to start looking again.
Obviously the negative side to this is that it means less people are now able to get mortgage. We’re all about as many people as possible being able to buy, however the increasing property prices needed to be slowed by something to get more people on the ladder so although the tougher regulations won’t be helpful to some right now, we’re confident they will be in the future.
As always if you have any questions about what these changes could mean for you or need some extra help now the mortgage regulations are tougher, just get in touch. Our advice is free.