StrideUp: London house prices and making property work for you
Our latest guest blog comes from Sakeeb Zaman of StrideUp.
“We all know house prices in London are high. There are many aspects to think about if you’re aspiring to be a homeowner, not least of which is deciding where to buy. Obviously this is a decision largely based on personal circumstances, but if you want to make the most of your money, it doesn’t hurt to also think about where property prices are rising.
London is going through an interesting transition – it’s now the outer boroughs where prices are rising the fastest. This is the opposite to the general trend over the last decade during which central London prices have led the way.
Median House Prices and Annual Price Appreciation By Borough
The good news from this chart is that there are still some areas where properties are a bit more affordable. The bad news is that it’s exactly these areas that are experiencing the fastest growth, so if you don’t get on the ladder soon (and this trend continues), it might get more
expensive to do so later.
We at StrideUp are launching a new product to help bridge the gap between renting and buying, so that households can get some foothold in this rising market. At the recent London Home Show we spoke to hundreds of people interested in finding a way onto the property ladder. In response to the interest we received at, and since the event, we decided to tell everyone a bit more about what they can expect from us in the coming months!
StrideUp offers a secure housing tenure as a part buy, part rent scheme. We see it as a stepping stone towards homeownership – it’s more secure than renting, and more affordable than conventional buying. We think it’s perfect for households that want to put down roots in London, but might not yet be able to afford to buy outright.
So how does it work?
- You start with saving a minimum of 5% of the property value. We don’t list specific properties, rather you choose your home from the open property market (doesn’t have to be new build).
- Once your offer is accepted, instead of getting a mortgage from a bank, you come to StrideUp and we arrange to purchase the property along with you.
- Once the transaction completes it’s your home to live in! You pay rent on the portion you don’t own, but whenever you want you can invest more of your savings and increase the ownership share.
If you’ve managed to save enough, you can increase your ownership up to 100% (with a regular mortgage). Or alternatively if you want to move on, that’s fine as well – you can just sell your share, and of course you’ll benefit from any property price appreciation during the time you were there.
You might think this sounds quite a lot like Shared Ownership. Well yes, we think Shared Ownership is a great way for people to work towards homeownership – we built StrideUp so that even more people can access this sort of scheme. We’re not restricted just to new build properties and we don’t put any limits on income, so you have plenty of options to find something perfect for you!
If this sounds like something you might be interested in, leave your email address with us and we’ll soon be in touch with more details. We’re busy getting ready to do our first transactions right now, and there’s a bit of a waiting list, but we promise to be with you soon!”