The London property market is crazy and despite the ‘crash’ in 2009 it would appear that house prices in the city and surrounds have recovered, some now exceeding their pre-crash highs. Though some reports express concerns about the impact of new and tighter lending rules, as yet there has been no visibly significant effect on prices. 
In the last post I wrote about the first house I loved enough to try and buy. That was about 5 years ago. The house was on the market for just over £200,000, received asking price offers from 3 separate interested buyers (according to the agent) and eventually sold for £225,000. That same house is now ‘worth’ in the region of £330,000 according to Zoopla‘s growth tool.
You might remember from the pictures in my previous post that the house was in need of updating/renovation. There is currently a house for sale on the same road which has been renovated entirely and the below pictures show what you can achieve with these houses with a little work (though they have made the space look much, much bigger than it is in reality).
Looking at the living room you can see how similar the house looks to the one I viewed but the work that has been done makes the house feel lighter and larger.
The kitchen is still small but the space is being used more efficiently and the light coloured units make it appear less cramped. I also think in this one they’ve extended into the garden or across the back of the house a little.
Now for the shock…
This house is for sale for £475,000! I’d like to believe it was a misprint or a fluke, but there’s another house on the same road for sale for around the same. It’s astonishing what a coat of paint and the passage of 5 years can do. Except in London, this is becoming the norm – the bubble doesn’t seem willing to pop. Of course, it won’t while people are willing to pay almost half a million pounds for a 2 bed terrace in one of the less desirable postcodes.
Talking of less desirable postcodes, I’ll be following this entry up with a look at some of the houses that have sold on my own road since buying the Cloud. Again, it’s a case of what a difference 5 years makes…