No homes for sale in London for less than £100,000
There are currently no properties for sale in London for £100,000 or less, and just four properties at £125,000 or under, according to Housesimple.com.
Excluding shared ownership and auction properties, houseboats and retirement homes, the cheapest property on the market today in the capital is a studio flat in Hornchurch, for which the estate agent is asking for offers over £100,000.
In fact there are currently just four properties in London that are Stamp Duty exempt (up to £125,000).
Research by the online estate agent highlights that, despite a cooling in the London property market, it is still way out of reach of buyers on average incomes. For example, someone earning the average UK salary of £27,271 (according to the Office for National Statistics), who has secured a mortgage of three times their salary, would still need a deposit of close to £20,000 to even be able to afford the studio property in Hornchurch, and that’s assuming the seller would accept an offer of £100,000.
Cheapest five properties in the capital
These are the five cheapest properties currently for sale in London:
1. Hornchurch, RM12, Havering, Studio flat, leasehold, offers in excess of £100,000
2. Erith, DA8, Bexley, Studio flat, offers in excess of £105,000
3. Borough Hill, CR0, Croydon, Studio flat, cash buyers only, £120,000
4. Sewardstone, E4, Waltham Forest, One bed flat, cash buyers only, £125,000
5. Orpington, BR5, Bromley, Studio flat, leasehold, offers in excess of £130,000
Sam Mitchell, CEO of HouseSimple.com, said: “The death of the £100,000 property in London was inevitable, but with just four properties on the market at under £125,000, this will very soon be the new price floor for the capital’s property market.
“This research highlights the need for properties at the lower end of the market. Shared Ownership and Help to Buy have helped people on average incomes get a foot on the ladder, but both schemes have their critics. It can be complicated to sell a property if you only have a small stake in it, and expensive to increase your stake, as there are additional costs to consider. While Help to Buy has been criticised for actually pushing up house prices and providing a vehicle for developers to inflate new build values.
“London prices cooling will help buyers, but we should be careful wishing for a Brexit slump, because even a 10-20% drop in prices could push thousands of people into negative equity and unable to move. That wouldn’t be a good outcome for anyone.”