‘Bubble like’ property conditions are emerging in the capital, according to Economic forecaster Andrew Goodwin.
Average house prices in London are currently £441,000 and are forecasted to increase to an average of £600,000 by 2018.
Goodwin, senior economic advisor to the EY ITEM club (Ernst & Young forecasting group) explained London “is suffering from a combination of strong demand and a lack of supply”. This has encouraged discussions over relaxing the planning system, to allow flexibility for house builders to increase the quantity of homes for sale.
Separate research from Estates Gazette says that the housing supply has been under-supplied for decades due to the UK’s planning system. Combined with the government Help to buy scheme, which is fuelling the amount of buyers but not increasing supply, the imbalance in supply and demand in the city is greater than ever.
However, while this news adds to concern that the London market is becoming increasingly inaccessible for buyers, we look at what the £600,000 average will buy you in current market conditions.
Lilian Baylis 2 bed 2 bath – £610,000
In the South East of London you can invest (off-plan) in the unique Lilian Baylis development.
This site will become a community of 149 homes. The school conversion units are completing at the end of this year.
Orsman Road – 2 bed 2 bath – £595,000
North of the river a newly built two bedroom apartment comes in at just under the £600,000 mark.
This site Regent Nine is close to the Regents Canal and Upper Street.
Lime Wharf 2 bed 2 bath – £595,000
You can even look to invest wisely in new developments for £600,000, even in the N1 postcode.
Lime Wharf is a contemporary development on the side of the Regents Canal close Islington.