London's Coolest Property Spot
The rising prices of houses have left those searching for their first homes in a difficult position as affordability has reached its highest ever level. Nevertheless, recent research has revealed that some exciting deals can be found if people extend their searches.
London residential property search engine Zoomf.com has discovered a London postcode only eight miles from the City where property can be found at £10,000 less than the UK average. This location has the River Thames within easy reach and an international airport.
Thamesmead in South East London may not yet be one of the glamour spots of the capital, but in SE28 properties can be found at less than £200,000. Zoomf found that 186 properties for sale in SE28 in late July has an average price of £187,716. According to latest data from the Halifax, the average British home now costs £198,915.
In Thamesmead it is not just flats that can be found at that price level; there are also a number of modern houses with two or three bedrooms - and it’s just 25 minutes to London Bridge on the train. The low prices in SE28 are mainly due to its location: the south bank of the Thames near the former industrial areas of the Thames Gateway. It lacks the appeal of a Hampstead or a Notting Hill – but it also lacks their extremely high prices. If buyers look just a little further afield than they might normally consider, then bargains are there to be found.
Mike Carter, co-founder of Zoomf.com, said: “Who would have thought it? A postcode in London that's cheaper — a good deal cheaper, in fact — than the national average and only six miles from Canary Wharf, arguably the global epicentre of financial services. Crucially, it's also an area that's set to benefit from massive inward investment in the years ahead, most notably the Thames Gateway Bridge, which will drastically cut travel times to the City and Canary Wharf. The billions of pounds that are being ploughed into East London to pave the way for the Olympics will also have an extremely positive effect. Could this be the postcode in London with the most potential for price growth in the years ahead?”
It certainly has a lot going for it, and in five years time may look like the investment of a lifetime.
As property becomes so expensive, especially in London, it is important for buyers to understand that by widening their search areas and loosening their requirements, they may yet find affordable properties. It is crucial for buyers to find property they can afford, but that will also retain its value in a period when the rising price of property is starting to cool. This is as true for areas like Thamesmead as it is for London’s hottest hotspots.
In August the Bank of England has decided to hold interest rates at 5.75%, but borrowers are warned to be cautious. At least one more rate rise is in the offing in 2006, and anyone looking at any kind of variable rate (tracker, discounted mortgages) should be wary of rising repayment in the future.
6th August 2007
Recent Mortgage News:
- Government Plans Massive House Building Programme [02.08.07]
A Green Paper is expected to reveal how the Government plans to ease Britain’s property problems. It could be the most radical attempt to influence the housing industry since the building boom of the ‘60s.
- Forecast Group Says House Prices Will Stagnate In 2008 [01.08.07]
A leading forecast group in the housing market has predicted that the housing market will come to a jarring stop next year at a point when the interest rate rises finally start to have a real impact on people’s budgets.
- Next three months to be turbulent for fixed rate customers [01.08.07]
The next three months are set to be very turbulent ones for hundreds of thousands of UK consumers that signed up to fixed rate deals on their mortgages two or three years ago. In the past year interest rates have rocketed from 4.5% to 5.75%, with five rate rises of 0.25% each.
- Many Brits have become reliant on loans [31.07.07]
According to a recent report many consumers in the UK have become reliant on loans to deal with their financial problems, with an alarming number of people opting to take out a loan to solve their financial issues rather than trying to save.
- Good mortgage deals are thin on the ground [31.07.07]
It seems that the fifth interest rate rise in the space of a year has seen affordable variable rate mortgages start to slip away from the grasp of consumers that are desperate to get onto the property ladder, according to recent reports.