According to London based real estate maven Nick Millican, in 2024 house prices in the British capital city will be the lowest it has been since 2014. However, home prices in London still cost more than 13 times the earnings of the average person living in this city. Millican points out that is still more affordable than in 2016, when homes cost 15 times what the average Londoner earned.
Nick Millican adds some more info on this. The average person still cannot afford to purchase a home in London because buyers can only borrow 4.5 times their salary from most mainstream mortgage lenders. Still, 21% more people in England want to live in London.
Decreasing Availability Of Homes
Nick Millican pointed out that while salaries in London have increased marginally and home prices have fallen slightly. Also, mortgage rates have doubled since 2021 and are now much higher than they were in 2014. This creates a major hurdle. However, London has 22% more homes for sale in 2024 than 2023.
This is after the market was relatively stagnant for 7 years. Home prices nationally have risen 34% during that time but have only risen 13% in London. The value of flats in London has only risen 2% since 2016 because the market for them was weak. And this is where real estate agent Nick Millican comes in.
A Spike In Activity
Real estate agent Nick Millican finally said more sellers with houses in all price ranges want to list their properties at a 10% discount early in 2024. And there are lots of interested buyers. Millican anticipates it will be a buyer’s market.