London is one of the most famous and visited cities in the world. For that reason, though, it’s also one of the most expensive. Many people are now facing the realization that they may never be able to afford to live in this beautiful and historic city. Keep reading to learn more about property prices in London and how you might be able to buy a home there.
London Property Prices
It’s no secret that London house prices are high and the problem is only getting worse. The average house in central London is now a whopping £1,210,701. That’s a lot for an area where the average salary is a little under £40,000. This is the result of substantial growth over the last couple of decades.
We only have to go back to 1995 to see just how different things were. Even in the more exclusive and glamorous boroughs of Kensington and Chelsea, the average property was a mere £658,000. The rise has been astronomical but, of course, wages haven’t risen at the same rate. This begs the question, then, is it still possible to buy a house in London?
Heading for the Outskirts
One of the best ways to still be able to live in the British capital is to move away from central London. Good transport options mean that it’s possible to live on the outskirts of the city and still commute to the center on a daily basis. If you’re looking to buy a home in this area, then it’s important to figure out where the cheapest areas of the city are.
The neighborhoods in London with the most affordable property prices include Havering, Bexley, Sutton, Barking & Dagenham, and Croydon. Some of these might seem a long way from the city center, but they offer homes that are more affordable to the average worker. If you search these areas, it should be much easier to find a possible home.
Getting a Mortgage
Few people can afford to buy a home outright, especially in London. That means that your best option would probably be to get a mortgage. To improve your chances of being approved for one, make sure you pay off all your debts and create a savings fund to pay a deposit. The greater your deposit, the lower the mortgage you’ll need to take out.
You should get advice about UK mortgages straight from the source. Work with an advisor who can talk you through the process of applying and how to increase your chances of getting approved. For many people, a mortgage is the best way to achieve their dreams of living in an expensive city like London.
Everyone wants to visit London, but could it really be possible to live there if you’re not a millionaire? It sure is. Of course, there will be a lot of compromises compared to living in a cheaper city. However, if London is your dream, then try to find an affordable home and then apply for a mortgage so you can afford it.
