Demand for homes in London is so high in many Boroughs that buyers are facing the prospect of having to pay a premium to beat the competition. This is becoming particularly common in areas typically considered to offer a high amount of affordable housing. There are several areas where sellers can stand to earn big rewards by selling while demand is at its highest.
The area with the highest premium is Sutton, a Borough in Outer London to the South West of the centre of the City. The location is popular because the average house price is around £341,571, making it one of the most affordable destinations in the capital. The housing stock is varied and the area is regularly referred to as a safe place to live. Additionally it is home to some of the best schools in London. Properties in Sutton are in such high demand that the average property will sell for 5% over its asking price. This premium can leave property owners earning an extra £17,000 if they decide to sell.
It is not just Outer Boroughs that are demanding high premiums. Tower Hamlets is located just east of the City and offers one of the most central locations. The area traditionally offers more affordable homes than other central areas with the average price at £516,467 where other locations in Zone One have averages in excess of £1 million. High demand has driven prices up here too, with the average home selling with a 4.3% premium. This translates to a bonus in excess of £22,000 for sellers.
Quite surprisingly the areas where buyers have the most power and can obtain properties at a discount are established prime markets like Westminster and Kensington. These areas have such high prices and demand has fallen slightly so that buyers are in a strong position. In some cases homes in these Boroughs are selling for 4.4% below their asking prices, producing savings up to £45,000.
The conditions in London continue to pose challenges for buyers in a number of areas. In fact the latest results show that 18 of the 33 Boroughs in the capital leave buyers paying a premium. The news will be particularly welcome to investors looking to make the best returns for their money. If you need any advice or guidance on investment properties in Camden, Sutton, Kensington or any other part of the capital, make sure to get in touch and we will provide you with all the help you require.