Why I look at property prices even though I’m not buying

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Every year I do a bit of property window shopping.

That is, I look for my next home even though I have no intention of moving from my current one in the near future.

The idea is to look at what sort of homes are available and what I might be expected to pay for them.

Why property window shopping is important

I do a little bit of property window shopping about once a year and I get three things from it.

First, it gives me an idea of how much money I might need if I wanted to move up the property ladder so I can mentally budget for it.

Second, it gives me an indication of what the property market is doing and how it might affect the price of a home (including my own) a few years down the line.

And finally, it gives me plenty of time to think about where I might want to move to, and therefore what sort of suitable properties are available.

In effect, the entire exercise is about financial goal setting and long term planning.

For example, I’ve been thinking for a long time about moving to somewhere where I can go kayaking on the regular, but house prices near commuting distance of London has ruled that one right out.

Instead, it looks like the most affordable place to live for a singleton remains within Wandsworth Borough Council, where houses are still relatively affordable and so is the council tax.

Breaking down the property window shopping benefits

To make it easier to see why property window shopping matters, I’m going to break down the benefits.

The example I’m going to use is from May 2021, when I first put together this post.

Financial goal setting

At the time, I spotted a couple of potentially affordable properties on RightMove that would have allowed me to decamp from a tiny studio flat to a house with one or more bedrooms and a garden in Wandsworth.

More space, and more importantly outdoor space was an essential criteria for my next move then.

The results gave me something realistic to aim for – a financial goal.

Long term planning

There were also some worrying signs about the property market.

Prices of flats seemed to have stalled in some areas after 2019, despite an overall upward trend in property prices according to London estate agents KFH’s data.

This could potentially affect the resale value of my home, so I’d needed to thinking about budgeting for this.

Alternatively I could think about renting out my home rather than selling it – but that means having capital to trade up without selling up.

So basically I needed to do some financial planning if I wanted to move into a bigger home with more space.

A note of caution

The thing with long term planning is that things could all change a few years down the line.

That applies to both what I’m looking for out of life, my financial situation and market conditions.

Back in May 2021, my property window shop revealed that I would need an additional £150,000 at the very least to move up the ladder.

My commute into central London would almost certainly double if I was set on outdoor space.

But as well as the additional space, I could potentially get some of that money back by renting out a car parking space, a spare bedroom, or even the kitchen (as a filming location).

Fast forward to 2024, I’m not spending a whole lot of time in the UK because of work.

And as I move closer to paying off my mortgage early, there is every possibility of pursuing a digital nomad lifestyle, which would free up my home for renting.

At the same time, a change in government has brought in fresh tax implications.

As I said, things can change – but doing a bit of property window shopping can help you stay prepared.

This post was originally published in May 2021. It was updated in December 2024.