Are London locals being pushed out of the Capital?
With the Olympic Games quickly approaching, London is firmly set to remain as the most expensive place in the UK. At present many landlords looking to attract short-term tenants during this time are charging premium rent rates due to the high demand for Olympic property. Similarly, property prices have started to rise, particularly near the Olympic stadium as the new developments add value to their surrounding areas.
Capital Expenses
Some assume that when the games come to an end prices may start to drop, however recent reports claim that London property values will increase by a total of 22% over the next 3 years. This is bad news for people looking to make London their permanent home, as it will make purchasing a property more difficult than it currently is. Even renting will prove a difficult feat as rent prices near the Olympic zone have already risen by 9% this past year.
Many landlords have been forced to raise their rent prices due to the increased mortgages they are taking out in order to fund their portfolio expansions. In fact, many are being praised for keeping the property market active while the economy struggles to stabilise. With higher mortgage rates, many landlords will be seeking cheap landlord insurance to reduce their overall costs.
So, does a cheap place in London exist?
Technically yes, it is possible to find a cheap place in London. It really depends on what a person defines as cheap and expensive, which varies. There are areas in the city which have property and rent prices lower than the capital’s average; however they will still be considerably more than most parts of the UK. The following areas in London will appeal to tenants who do not earn the highest of salaries such as young professionals and students, even possibly some families.
East and South East London are particular hotspots for property seekers on a budget. Using Zoopla.co.uk for price references, the following areas were identified as places that provided an abundance of cheaper than normal house share properties with 3+ bedrooms that still have ample travel resources.
Camberwell – prices currently range from £1200pcm to £1700pcm. It’s located in zone 2 with connections from Denmark Hill station on National Rail lines. London Overground is also expected to serve this station from October 2012.
Elephant & Castle – prices currently range from £1400pcm to £1900pcm. It’s located in zone 1 and 2 with connections on the Bakerloo Line, Northern Line and National Rail.
Walthamstow – prices currently range from £1000pcm to £1600pcm. It’s located in zone 3 with connections on the Victoria line and National Rail.
New Cross – prices currently range from £1200pcm to £1600pcm. It’s located in zone 2 with connections on the Overground and National Rail.
Poplar – prices currently range from £1400pcm to £1700pcm. It’s located in zone 2 with connections on the DLR.
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