What’s Best Way to Buy vs Rent?

Sep 18, 2023

Real Estate Market Insights

In a shifting real estate landscape, the serious players are emerging as the driving force behind property sales, with fewer viewings and valuations taking place.

 

UK Home Sellers Cutting Prices

According to The Guardian, the proportion of UK home sellers reducing their asking prices has reached a level not seen in over a decade. Rising mortgage costs are discouraging potential buyers, as interest rate hikes take their toll on demand, as reported by property website Zoopla. In August 2023, Zoopla compared monthly mortgage payments for first-time buyers in the UK with average rents, revealing that in London and the South of England, where rents are high, monthly mortgage payments now surpass rent. For instance, in London, with an average house price of £552,000, first-time buyers paying a 15% deposit and a 5.6% interest rate face monthly payments of £2,546, exceeding the average monthly rent by £493.

 

Challenging Times for Homebuyers

With mortgage costs at record highs, the dilemma between buying and renting becomes more pertinent. Many aspiring homeowners have had to put their plans on hold. Rightmove’s latest house price index shows a drop in sellers’ asking prices in August, the most significant decline since 2018, with sales down 15% compared to 2019. Despite this, homeownership remains an appealing option for cash buyers.

 

London’s High-End Property Market

However, London’s prime property market, particularly properties priced above £2 million, remains resilient, attracting interest even in a market with limited inventory. The absence of Russian and Chinese investors is not expected to significantly impact London’s ‘ultra-prime’ property segment. Savills predicts a rise in UK house prices in 2024, making it a prime time for property investment.

 

Quality Real Estate Insights

In my recent encounters, I had the privilege of meeting Mandy, the Head of International Sales at IQI Malaysia, witnessing outstanding interior design at Lancer Square, and exploring the featured property for sale this month, Park Modern in Kensington W2. As a buyer’s agent, I always emphasise the importance of location.

 

Your Real Estate Resource

For more information on quality real estate and the latest London real estate news, Evassential offers comprehensive home buying and leasing support, legal counsel, tax advice, credit counselling, and other services to facilitate your property journey. I specialize in assisting international buyers in London, providing real-time information to help you make informed decisions. Let me guide you to ensure your biggest purchase isn’t your most expensive. Evassential – Your buying agent for properties above £1 million and beyond.

 

Safety and Regulatory Update

Safety remains a top priority. If you are responsible for fire safety under the Regulatory Reform (Fire Safety) Order 2005, please ensure you understand the requirements of the new guidance, including changes introduced by Section 156 of the Building Safety Act 2022.

 

Upcoming Events

I’ll be in London on September 19th for a private clients HNWIs event in Mayfair, and on September 27th, the annual Monaco Yacht Show awaits you. Additionally, you can join me locally for a special ‘London Slings’ new signature drink at the OWO Raffle Hotel’s grand opening on Friday, September 29th, in celebration of the Chinese Mid-Autumn festival, also known as the Mooncake festival. London welcomes you!

 

Your Trusted Advisor

I’m dedicated to maximising benefits for my clients, whether for investment or owner-occupation, ensuring you feel at ease with your overseas investment. Whether you’re considering a property in London for personal use or for the next generation, reach out to me today with no obligation.

 

Stay Informed and Invest Wisely!