Read the latest Junaid Iqbal Mohammed Memon blog. Junaid is an experienced property developer based in Dubai and in London. Coming from a business-oriented family, he has learned some business secrets at an early age, which has inspired him to forge his own path and make for himself in the real estate and property development industry. To date, he has several businesses in the UK and in Dubai and he also has several completed development projects under his belt.

First-time property buyers in London now have to put down deposits that are high enough to let then buy an entire house on the spot anywhere else in the country. Average starter homes in the capital now cost an average of £420,000. This means that buyers will have to shell out a whopping £114,952 if they are to cover the 27% required deposit. Still, despite the deposit reaching such eye-watering levels, the number of first-time property buyers in London seems to be increasing.

It is worth noting that this particular deposit would be more than enough to comfortable purchase on the spot a terrace house with three bedrooms in Scarborough on North Yorkshire. It can buy a cottage with two bedrooms in one of the villages in the Midlands. It can also get one a smart flat with two bedrooms in parts of Essex or in Norfolk. Still, despite the prohibitive costs of entry, the number of first-time property buyers in London seems to be steadily rising.

Last year alone, more than 150,000 were able to successfully get on the property ladder. This is certainly a good figure especially when compared to the 72,700 recorded back in 2009, back when the country was in the depths of a recession. According to research though, this has been made possible thanks to parents that are handing over huge lumps of cash to their children in order to help them on to the housing ladder.

Only about 35% of people aged 18 to 34 intend to work on saving up for a deposit. Most of these people intend to stay at home until such time as they can finally afford to purchase a place they can call their own. This could be a sensible decision though especially if one were to consider how costly the rents in London are.

An average property in London will have an annual rent of about £20,000 a year.  More recent data shows that by average, a London renter will have to pay around £1,615 every month for rent- something that has actually increased by 3% when compared to how much they were paying last year. Meanwhile, rent in the rest of the country is at £777 per month, which is up by a percent from the figures last year.

The increase in the rent price means that those who belong in the Generation rent now have to spend a third of their overall income on housing costs. This leaves them with very little wriggle room when it comes to saving for a deposit.

As of the moment, the average age for people that can finally afford to buy property for the first time has gone up to 31. Still, their number seems to continue to grow and is even nearly back to its peak as was seen in 2006.

Keep updated with the latest development in London’s property market by reading about Junaid Iqbal Mohammed Memon online here. You can also follow the Junaid Iqbal Mohammed Memon Twitter page here and Visit Junaid Iqbal Mohammed Memon Pinterest page here. 

Junaid Iqbal Mohammed Memon is a seasoned investor and property developer who owns and manages properties both in London and in Dubai. Having been exposed to the ins and outs of business thanks to his family, he has since applied what he has learned into property development. To date, he has completed several residential projects. The founder of the Cloud Nine Group, he is based in Dubai and London.

Buyers and sellers in the British capital are more optimistic about the prime residential markets in Central London. This is mainly thanks to rent increases and the rising house prices in the first quarter of 2018 despite the fact that transactions seem to remain low.

The most desirable districts in Central London are still quite in high demand among property renters and buyers. Quarterly price increases have been seen for the very first time in such prestigious addresses as Kensington, Chelsea, Mayfair, and Knightsbridge. This is for a period of one year. There also seems to be signs that the lettings market is starting to stabilise after falling rents of three years.

There has have been considerable changes in the residential landscape of the UK capital for the recent years. There has been an increase in the stamp duty for properties that are of higher value and there have been uncertainties when it comes to the possible impact of Brexit. Still, the outlook seems to be considerably positive now for both sellers and buyers alike.

People who have owned prime properties before these changes were introduced have now adopted a more accepting attitude over the new dynamics. However, there has also been an increase in second-hand property entries in the market. These properties will now join the present inventory of new-build projects that are being launched in the capital’s most sought-after locations. This is expected to create a marketplace that will be more competitive throughout the rest of the year.

Across central London’s prime district, there has been a modest property increase of 0.3% for the first quarter of this year. A more substantial growth has been exhibited in such submarkets as South Kensington, Chelsea, and Mayfair. Houses with three bedrooms were the ones that really got the greatest price gains for this year’s Q1 at a £2 to £5 million range.

Still, despite the increase in house prices, the first quarter saw a decrease in the sales volume of sold property across the prime locations in London. This just suggests that many owners are likely waiting for the prices to substantially recover before putting theirs in the market, especially now that there are clear signs that the property cycle is slowly recovering.

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Also, there are factors such as economic and political uncertainty in the UK that may have also influenced buyers’ decision to try and bide their time to see how things will unfold in the next general election and until the terms for Brexit will finally be laid out. Many are optimistic though that the outcomes will be nothing short of favourable. Stay current with the latest trends and news in the UK property market by reading about Junaid Iqbal Mohammed Memon online. You can also follow the Junaid Iqbal Mohammed Memon Facebook page. Learn more about Junaid Iqbal Mohammed Memon by checking out his website here.