This property for sale on RightMove through Winkworth is unusual in that it is significantly unimproved and looks like a desperate sale. Thoughts?
a. It doesn't necessarily scream rented property to me. It looks more like one that's been lived in, probably by an older person/couple.
b. I'm not sure we can even get the hint of a trend from a single property.
What did happen the day after the vote locally, and probably nationally, was discount hunting. One local agent told me that one buyer sought to reduce their offer by 20%. Other agents reported similar activity. However, as far as I can gather this is people chancing it and cannot be said to be forcing a downward trend (yet). I think commercial property is seen as being more under threat than residential.
That's made me a bit sad actually. I hassle my brothers in New Zealand to mow my mother's lawn and I guess someone here is going to massively benefit from an elder relative that they couldn't even be bothered to do that for.
A valuation surveyor I spoke to about this has told me that on his unscientific discussions amongst colleagues around an 8% average reduction is being negotiated on residential purchases post brexit (in London). It's too early to say what the medium term pattern will be, but it's making valuation tough.
Yes, to the initial question. Lots of houses and flats have come online in the last 3 months, in N15, N17, n8 - all looking like they've been rented out for years. Tell tale signs include basic/ outdated bathroom and a garden that is unkempt or concreted over. Have a gander at the House Price Crash Forum, stamp duty changes are kicking in
Good old house price crash forums - land of the desperate and hopefuls.
As long as the substantial structural shortage of property construction in London remains and interest rates stay low (say <3% BoE base), I can't see a driver for substantial downward price changes.
If as a consequence of Brexit, Britain decides to throw out all Europeans, then sure, that would free up enough housing stock (3M europeans, 7% of the UK's working population) and take the economy & NHS down with it.
I agree with Hugh that it doesn't look like a rented property but the lack of photos suggest it may of interest to a property developer.
To me it looks possibly like an either an estate sale or someone who has going into care. Electric heater in the lounge could mean no central heating. Bedroom walls look damp etc. Lack of photos is surprising for Winkworth, but may give you insight into the state of it. Full resto needed. There is so many of these on the ladder that you just don't notice.
There are reasons other than Brexit for Landlords being unable to sustain their business - the rise in stamp duty and the proposed decrease in tax relief for example. House prices are also rising faster than rents, making it hard to pay back the mortgage interest on new investment purchases, even though interest rates are quite low at the moment. As other readers have said it is hard to say what the position is with this house. This kind of thing does come up from time to time, whether through Probate or a lack of funds for necessary improvements to properties. It is easy to say it looks like a bargain but when the costs of refurbishment are taken into account, assuming they are done to a good standard, it may not end up being quite so cheap! Also unless it is a cash buyer they would not get a big mortgage on the house if it is for renting as the banks lend based on the rental expectation as the house is now, not when it is finished. Along with the time it will take to refurbish, it is quite a big investment and risky, so all this needs to be taken into account when assessing the true cost of a property.
This is VERY mortgageable. I think the usual calculation for a house's value is presume a 5% return. A three bed house on the ladder is about £2400pcm. So if that's a 5% return then the house's value is 12*2400*20 = £576,000. Taking it back in the other direction from the asking of £700,000 we get a rental return of 4.5%.
The properties you have to pay cash for are: flats above a chip shop, flats above the fourth floor in an ex local authority tower block, places you can't live in right away (although often you just need a big deposit for those).
You can buy three bed flats for £200,000 for cash in these circumstances in Tottenham and then rent them out for £1400pcm. This implies a return of 8.4%. You can't get that in a bank.
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