Last night saw MyHomeGroup’s first ever MyHome Insights Event at The Skylark Cafe in Wandsworth, London. Hosted by Managing Director, Will Clark, it featured guests Fionnuala Earley (our Head of Market Insight) and Life After London’s Belinda Aspinall. It covered Wandsworth’s property market, the overall UK housing movement, and deciding when's a good time to finally move out of London.
Fionnuala Earley, Head of Market Insights at MyHomeGroup
“Economic conditions aren’t bad, but there are fragilities.”
The construction and manufacturing industries aren’t looking great for economy growth at the moment, and the current exchange rate is indicative that the UK's vast import of components are proving expensive and effecting inflation. The labour market is looking good however, and wages are now stronger than inflation, helping living standards, while unemployment is at a low, too.
It’s been difficult for the housing market. But the uncertainty of Brexit, although it takes its toll on the housing market, isn’t the sole contributor of the current market state, taking into account recent pesky tax changes. There's also a heavy reliance on schemes like Help2Buy which can only really help a sector of the market, not its entirety.
“Panic over the market? It needs to be remembered in London that prices now are still 50% higher than they were in 2007, and the market movement now is much more notional. Compared to history, we’re still in a steady place.”
Will Clark, MD at MyHomeGroup
Owning in one of London’s most desirable boroughs.
The average price of a property is 2.6x greater than the London average, and Capital Value has grown 11% since 2006 (5% in the last 5 years), while remaining fairly flat in the rest of the UK. In terms of new housing stock, Wandsworth consistently performs among the top ten London boroughs over the last ten years.
However two issues have caused the local market to stagnate a little – the aforementioned uncertainty over Brexit, and a very cautious buyers’ market.
On the other hand, the private rental sector is growing stronger in Wandsworth than the rest of London: “32% of residents rent privately in Wandsworth, compared to 25% in the rest of London. And rentals in this borough are 17% more expensive than London.”
Belinda Aspinall, Life After London
“The thought of moving out of London fills me with fear!"
Belinda rounded up the evening with first-hand insight into how much consideration should go into preparing for a move away from the capital. According to the founder of support and advice website, Life After London, a lot of Londonders aren’t ready to move away from the capital, and citing ‘improved quality of life’ as their key reason isn’t enough to make their new life work.
“People move simply expecting much more for their money outside of London, but don’t assume the costs of living rurally are much lower.
“Homeowners need to future proof their move as best they can, but they usually only consider primary needs (next 4-6 years).”
Belinda’s key considerations before moving out of London:
Is this our forever move?
Can we afford it?
Do we want urban/village/rural?
How do we perceive better quality life?
What does normal look like?
What is our schooling plan?
What are the most crucial aspects?
What are we waiting for?