We’ve said it before and we’ll say it again: the coronavirus pandemic has had far reaching impacts on all aspects of life. So, what’s the latest?
The knock-on effect it has had on London’s house prices.
According to new data, the house price gap between Inner and Outer London has shrunk to its smallest in a decade. As it stands, the average cost of a home in Inner London is now £599,000 compared to Outer London homes averaging at £452,000.
This is just a 33% difference versus the 50% gap published in 2013. And a direct result of the pandemic-induced ‘prioritisation’ of space over location.
Team Innie or Team Outie?
“The pandemic has created two tribes in the Inner and Outer London property world,” Jo Jingree, director of Mortgage Confidence says.
“With the gap between prices in Inner and Outer London at a low, this could be a once-in-a-lifetime opportunity to buy a property just a stone’s throw from all the sights and sounds of one of the most iconic capital cities in the world.
“On the other hand, we’re seeing a number of people wanting to cash out on their central London property. To swap it for more space in a greener part of town.”
According to the new data, the last time the values shrunk to a 33% margin was in 2010. So, if you’re thinking of returning to the capital, now might be the time to do it.
Words from a Team Innie
Jo recently helped one client move from Stratford further in to London to a new development called, East Village London in E20.
“We were already living in Stratford which is just up the road so we knew the area fairly well. We love London and the fact that there is much going on, especially now everything is opening up again including restaurants, bars and music events. Plus, commuting is amazing – it’s 7 minutes to Kings Cross!
“We weren’t tempted to move further out to get more greenery during the lockdown. We are right next to the Queen Elizabeth Olympic Park which is 25 acres of green space. So it feels like we have the best of both worlds. With the affordable housing options available, it was actually fairly affordable to buy a property here, even with a small deposit.”
Words from a Team Outie
While another client of Jo’s took the leap one step further and moved from their SE20 postcode in Penge to Redhill – just the other side of Croydon.
“We moved for a few reasons. The lockdown accelerated our decision to move, but a big part of the move was to be closer to family. We also wanted to have more space, and to have a garden, driveway and some more privacy. The new normal of working from home meant we didn’t need to be as close to the city. One of us also had a change of job and are now only required in the office twice a week. Therefore, the increased travel cost was offset by this.
“Moving out of London meant we could get a lot more for our money. We could gain an extra bedroom, garden and driveway and we would have had to compromise on at least two of those features if we stayed in greater London.”
Here at Mortgage Confidence we can help all types of people to get a mortgage. Whether you are re-mortgaging, moving home or first-time buyers. Jo has more than 20 years’ experience. Get in touch today for a 30-minute free consultation.