London has been one of the hardest places in the world to buy homes in the last few years. There has been issue after issue, such as lockdowns, high prices, climbing interest rates, mortgage availability problems, and more. Lack of supply is also a big concern. It looks even worse when you consider how many half built ‘ghost homes’ there are across the city. We want to look at this today, then if you need guaranteed rent in London, you can speak to us.

The worst it has ever been

In cities there are always various projects at different stages of completion. It is the nature of how they evolve. Some sadly have to pause for a variety of reasons. However, at the end of the year there were 61 sites in London where work was paused. All of these projects had plans to build more than 20 new homes; some would bring hundreds. In total, it meant over 6,000 homes were no longer progressing.

Experts in the housebuilding industry are saying the situation is the worst it has ever been for projects stalling. It far exceeds the difficult period in 2008/09 when we had the global financial crisis. Here only around 10 developments had to pause.

There are no geographical limits either; there are ‘ghost homes’ awaiting completion in 24 of the 32 London Boroughs. Croydon currently has the bigger problem, with a dozen projects totalling 841 homes. Tower Hamlets has a higher number of partially built properties though, with 1,684 at four sites.

What is to come?

It will be interesting to see what happens next with all these projects. They still have lots of potential, especially those in areas where there is highest demand for housing. Investors will be interested too as there is an increasing demand for rentals. We’ll be on hand to help investors, arranging guaranteed rent in London.

Some projects are already working on restarting work. They can try different strategies here, including trying to sell properties off-plan. What this means is people agree to buy before the homes are built. It can ease financial pressure on the developer.

The situation could also improve naturally as we get more clarity on crucial things like the political landscape. More importantly, there needs to be more details about new regulatory requirements, such as second staircases. This could help to unclog the whole planning side.

In addition, economic pressures seem to be easing. Before the start of the year there was fear of a big dip in house prices. However, some experts now have a more positive outlook because the UK is no longer in recession. If interest and mortgages rates can come down and make it cheaper for people to lend, it would be a big help too.

Do you want guaranteed rent in London?

While there are some black clouds at the moment, there are some silver linings too. For one thing, investors who are willing to commit could find impressive deals. The current conditions create a buyer’s market where they have the power. So, sellers are typically more willing than usual to agree to deals and offer discounts. In fact, you could save 5% or more in most cases. It can be even better for buyers who have cash to spend because deals can be agreed very quickly.

If you do decide to act, we would love to help. You can come to us for guaranteed rent in London and much more. We’re a company with a lot of experience. As a result, you can get the best support with all kinds of things, including deciding where to invest, whether to look at things like HMOs, and how to get the best returns. So, contact us to learn more.