What Are The Key Factors That Impact 1-Bed London Property Prices?
What are the key factors that impact 1-bed London property prices?
These include:
Supply and demand - the number of 1-bed properties that are available vs how many buyers there are for 1-bed properties.
The availability of money and the cost of money (think mortgages and interest rates).
“When more people can borrow more money, they are they able to ‘compete’ with other buyers at a higher price point.”
Will lenders become more cautious about lending money and how much money they will lend?
Lenders look at your circumstances and make a judgement on how much money they are prepared to lend you.
When more people can borrow more money, they are they able to ‘compete’ with other buyers at a higher price point.
If more people can afford to borrow more money, then more people can theoretically offer on a 1-bed property, likely increasing the sales price - especially if there is lower supply!
Even if you’re going to live in a 1-bed house for 10 years, it does not mean that prices will go up!
You make money when you buy…
Why is this?
Well, if you buy well, in a popular location, on a popular street and you buy at an attractive price, it ‘future proofs’ your 1-bed home.
This means that if prices go up, your 1-bed house will go up even more in value.
If prices go down, then your 1-bed house will hold value better in comparison to what you actually paid for it.