For many homeowners in Finchley, the dream of moving to a larger property can feel like an uphill battle, especially when considering the unique challenges of the London housing market. However, recent research by Zoopla has shed light on how the type of home you currently own and its location can significantly impact your ability to afford an upwards move.
As a local estate agent, we understand the importance of navigating these factors to help you make informed decisions about your property journey.
It is vital that you don’t take national or regional averages as all you need to consider when moving property. We all know the London housing market stands apart from the rest of the country at the best of times, but it also appears the type of property you own, and the size of home you wish to move into, impacts your ability to generate a sizable proportion of the purchase price from the sale.
Zoopla Senior Property Researcher, Izabella Lubowiecka, said: “Generally, the longer someone lives in a property, the more money they stand to make. However, those who bought when property prices last peaked, just before the 2007 financial crisis, saw more modest gains compared to those who bought after, when house prices dipped.”
Lubowiecka also spoke about the type of house impacting the return you receive. “While demand for large family homes and bungalows fell towards the end of last year, successful sellers of these property types stood to make the most money in 2023. The average seller of a detached home made £137,000. That means their property earned £18,000-a-year for them while they lived there. Bungalows were also profitable in 2023: the average gross profit made from a bungalow sale was £102,000, the equivalent of earning £13,100-a-year.”
A common move we see in the local area is people moving from a two-bedroom property to a three-bedroom house. If you have a growing family, you require more space, but the changes in how we live and work in recent years has impacted the space we need.
With more people working remotely, there is a need for a sizable home office space. If two adults in the house are working remotely, there is even an argument for two office spaces, which will place some homes, and homeowners under greater stress!
Lubowiecka explained: “In the capital, if you sold a 2-bed flat last year, you’d have made £78,000 on average. This could contribute 14% towards the purchase of an average-priced 3-bed home in London. In contrast, those making the same move in northern England made £17,000 on average, which would work out as a 9% contribution towards the average 3-bed house. “
It’s also interesting that as the size of the house increases, the contribution you can make to an upwards move is greater, especially in London.
Izabella Lubowiecka also said: “In London, the gross gains from a 3-bed house sale could contribute 25% towards your next property, while in northern England, it’s around 16%. Those who sold a 2-bed house with the intention of upsizing to a 3-bed house could count on the profits making the largest contribution towards their next home purchase. If you’re upsizing from a 3-bed house to a 4-bed house it becomes easier, as the profits made from selling a 3-bed house tend to make a more meaningful contribution towards the purchase of a larger 4-bed house. Those profits ranged between 30% in London to 21% in Northern England.”
We have assisted many Finchley homeowners looking to sell their home, and we know what buyers are looking for when searching for a new home. You can take the stress out of connecting with likely buyers by turning to a local estate agent in Finchley.
If you want to make an informed decision in and around Finchley’s property market, we are here for you. If you have any questions about the local market, or you need assistance, please contact David Harris & Co today. Call us on 0208 346 9122.
