Buying a home in London can be an exciting but daunting task, especially in the current economic climate. As we step into 2024, it’s crucial for homebuyers to make informed decisions to avoid costly mistakes. The Standard complied a breakdown of expert advice on the types of properties you should steer clear of in the London market this year.
Beware the One-Bedroom New Build
Alex Goldstein, a property consultant, advises against purchasing new one-bedroom flats. These properties, he notes, are a risky investment due to their high initial cost, lack of upgrade potential, and limited space. Goldstein emphasises that the inability to extend or improve these small properties significantly hinders their market appeal.
The Heat-Leaker Homes
Nick Whitten of JLL highlights the importance of a home’s ability to retain heat. Despite the government’s rollback on mandatory Energy Performance Certificate (EPC) upgrades, purchasing homes with poor EPC ratings (below E) could lead to legal challenges in letting them and high energy bills. Whitten warns against buying properties with EPC ratings D and E, predicting future regulatory tightening.
Short-Term Purchases: A Bad Idea
Adrian Anderson from Anderson Harris urges buyers to think long-term. He recalls the post-lockdown rush to buy homes and advises against making hasty decisions based on temporary market conditions. High costs associated with buying and selling, along with mortgage penalties, make short-term property investments unwise.
The Pitfalls of Shared-Ownership
Paula Higgins of HomeOwners Alliance raises concerns about shared-ownership schemes. While these can be stepping stones to full ownership, they come with annual rent reviews and potential restrictions, such as on subletting. Higgins advises thorough research to understand the financial and legal implications fully.
Fixer-Uppers More Trouble Than They’re Worth
Finally, a word of caution against fixer-upper properties from industry expert Rolande. He notes the current shortage of skilled labor and rising costs of building materials. Additionally, planning backlogs can delay renovation projects. Unless you have significant funds and patience, undertaking a major renovation in the current market is risky.