Property Advice

Wednesday 7 March 2018

Hampstead Homeowners: The Perils of Overpricing



As a vendor, naturally, you want to achieve the best price possible for your home. It’s normal to get the opinions of the three local estate agents about the price and go for the highest quote. In truth, overpriced homes will always sell for less and take considerably longer to sell. Here are the 3 things to bear in mind.

1)    Buyers make their decisions based on emotion and intellect. As much as they may like your home, they make comparisons with other offerings in the local market. Why should they buy your house if it’s more expensive than a comparable alternative? ..... It makes either practical or economical sense. Your home will languish on the market, with little interest shown until such time all the similar homes have sold. By that time however, it may have gone “stale” due to over exposure in the market.

2)    When your home is first listed, the highest level of interest will be within the first 3-4 weeks. An overpriced home will prevent serious purchasers form registering their interest that will focus on other similar alternatives. This is a missed opportunity to attract the interest and attention of purchasers who may well be in the buying window. The trade off is time vs. footfall. The more buyers that view, the competition between them will drive price up as where time will drive it down.

3)    Sellers who say they are “open to offers” often set themselves up for failure and disappointment. The fact is, fewer purchasers will view the house, and therefore the chance of an attractive offer is fairly remote. Overpricing attracts attention form the wrong type of buyer with unrealistic expectations who is unlikely to offer in any case. People’s emotions play a big part in the buying process and what the are willing to pay. Correct pricing is essential, as trends show that serious buyers tend to purchase at the top of their budget. Therefore, the pool of buyers for your home will be looking in a lower price bracket not a higher one. These are the people that you need to attract not repel!
Intense buyer activity in the early stages of marketing is what will secure the highest price and here at Ashmore Residential our job is to bring about the best results possible. In essence, realistic pricing and good presentation will make your home competitive and attract buyers who are serious and committed. Your home is being offered to the market in competition – not in isolation to others.  The right strategy from the onset will save you time and make you money. 

Thursday 1 March 2018

51.3 % Fall in Hampstead Homeowners Moving Since 2007


Last Sunday morning I was reading the papers and came across an article in the Financial Times. It was talking about the Government’s ambitious Housing Scheme announced in the Autumn Budget and how it will address the lack of new homes being to help the first time buyers market. Other touch points were how the affordability of homes was getting further out of reach for many and how the stringent mortgage rules brought in 3-4 years ago have added to the plight of the aspirational home owner. My thoughts were then directed towards those existing homeowners who can’t move and that they face the possibility of being caught in a housing trap.

Back in the early 2000’s, between a million and 1.3 million people moved each year in England and Wales, peaking at 1,335,166 home-moves (i.e. house sales) in 2002. However, the ‘credit crunch’ hit in 2008 and the number of house sales fell to 642,111 in 2009. Activity has increased steadily since albeit to a more ‘respectable 895,674 properties by 2017. This means there are around 440,000 fewer house sales (house-moves) each year compared to the turn of the millennium. The question is why are there fewer house moves?

The answer to this lies in history. From the late 1960’s to the early 1980’s the Economy was marred by high inflation. Governments of the time raised interest rates in response to curb inflation and get it under control. Higher interest rates meant the householder’s monthly mortgage payments were higher, meaning mortgages took a large proportion of the homeowner’s household budget. Although it appeared homeowners had a millstone around their necks, high inflation eroded mortgage debt, thus increasing their spending power in real terms. Wages had increased significantly during this period to keep up with inflation enabling home owners to obtain bigger mortgages. This allowed them to upgrade from the two bedroom flat to the three bedroom semi and then onto the four bedroom detached. Fundamentally, the erosion of mortgage debt meant higher levels of equity could be relapsed enabling home owners to move up the ladder quicker.

See the graph below that illustrates the slowing trend over the past 10 years.
(Source- Office of National Statistics)


Moving into the 1990’s and the Millennium, interest rates and inflation fell to all time historic lows, meaning homeowners had even more equity to release. The boom in UK house prices from the period 1997 to 2007 was astonishing. Banks and building Societies slackened their lending criteria to a degree that is now regarded as grossly irresponsible in today’s market place. The financial markets were awash with money; the cruel irony was that homeowners were biting off more than they could chew. This had a significant impact on the housing market and the economy in the coming decade.


The Bank of England only recently raised rates to though they are still at record low levels in their 400 year history. Based on this, it would be a fair assumption that the number of people moving would be at an all time high. In reality, the opposite is true, below are the main factors.
(1) low wage growth of 1.1% per annum,
(2) the tougher mortgage rules since 2014
(3) sporadic property price growth in the last few years
(4) High property prices compared to wages
what does this translate to in pure numbers locally?), all these four points have come together to mean less people are moving … but by how many?
In 2007, 12,584 properties sold in the London Borough of Enfield Council area and last year, in 2017 only 6,127 properties sold – a drop of 51.3 %.

Therefore, we have just over 6,450 less households moving in the Hampstead and surrounding Council area each year. Now of that number, it is recognised throughout the property industry that some 80% of these homeowners are encumbered. That means there are around 5,160 mortgaged households a year (80% of that figure) in the Hampstead and surrounding council area that would have moved a decade ago, but wont this year.
A recent report by the Council of Mortgage Lenders (CML) has shed some light on this and I have broken this down into four categories.
So, of those estimated 5,160 annual Hampstead (and surrounding area) non-movers, based on that CML report –
1. There are around 2,600 households a year that aren’t moving due to a fall in the number of mortgaged owner occupiers (i.e. demographics).
2.  Approximately 750 households a year are of the older generation mortgaged owner occupiers. Older homeowners are less inclined to move.
3. 500 households of Hampstead (and surrounding area) annual non-movers will mirror the rising number of high equity owner occupiers. Now cash buyers.
4. The remaining 810 or so mortgaged homeowners that are unable to move because of the restrictive lending criteria introduced back in 2014 for those who need to obtain larger mortgages – especially true in Hampstead where house prices are 5 times that of the London average.
 In the main, reasons of lifestyle and demographics are factors the Government and Bank of England have little influence over. However, it’s the final category of people that could be helped. If average values were lower, it would decrease each step of the property ladder.
In turn, this would enable the upgrading trends that we saw a generation ago, where the affordability gap is narrowed and people can move to more desirable homes and or areas.

Whilst the criteria has changed for those requiring bigger loans has somewhat subdued buyer activity, the past culture of banks and building societies has changed the landscape for the foreseeable future. 

Friday 23 February 2018

Are Hampstead landlords to blame for the lack of first time buyers?


I was having an interesting chat the other day with a couple of solicitors at a Hampstead business networking event, when the subject of a lack of property for first time buyers came into the conversation. I followed the chat up with an email with my findings, of which I would like to share with you today.

At the time of the last census in 2011, there are 3,401,675 properties in England that were privately rented, of which it is estimated, were owned by over 1.25 million private landlords. The rapid growth of buy-to-let is hugely controversial, especially as only ten years before that, there were only 1,798,864 properties under private renting in England. Buy to let landlords have been held responsible for forcing up property prices and preventing our younger generations from being able to buy. There is also growing resentment toward the billions of pounds in tax relief (estimated to be nearly £10 billion) landlords have claimed on their mortgage interest -tax relief not available to homeowners.

They may be asset rich thanks to recently rising property values, but let us not make the landlords the bogeymen they could easily be called. Despite all these benefits enjoyed by private landlords, let us not forget the good they have done, especially in Hampstead.

Property values today in Hampstead are still 51.5% above the 2007 property boom levels (2007 being the peak of last property boom before everything dropped in 2008/9), yet inflation has risen by 26% in the same time frame, so in real terms, properties today are only 25.5% more expensive than they were in 2007. Just think how low they would be without landlords buying all those rental properties in the city. Interest rates are at an all time low and first time buyers only need to save a £16,000 deposit to secure a lovely studio flat in Hampstead Heath with a 95% mortgage. Forget what the papers say, first time buyers can borrow money relatively easily on a 95% mortgage and nine times out of ten, it’s cheaper to buy than rent. So why aren’t people buying?

The number of people choosing to rent, either for lifestyle or economic reasons, has grown since 2000. I also believe they will continue to grow for some time to come (as does every report on the subject). In fact I would go as far to predict the number of rental properties in Hampstead will have risen from the 20,276 properties recorded in 2011 to 25,300 by 2021. Sound fanciful? Well in 2001, there were only 14,724 privately rented properties in Hampstead.

It is a fact that we as a Country are more and more turning into a European model when it comes to homeownership, where the norm is renting for the first ten years, as opposed to the norm from the 1960’s to 1990’s, where first time buyers were encouraged to buy as soon as they left school and got a job.

Tenants, in particular, will also feel the benefit from recent changes in the market. The current mix of existing economic conditions, combined with the uncertainty of the Brexit negotiations has resulted in low demand for people to buy yet also put a dampening effect on increases in rent. As long as landlords buy the right sort of property, that allows for a reasonable yield, decent capital growth, everyone will be a winner.

If you want a chat about what would make the best sort of property that would offer that in Hampstead, then please email me on chris@ashmoreresidential. com or visit the Hampstead Property Blog www.NW3propertyblog.com

Thursday 15 February 2018

Kerb appeal in Hampstead: You could add over £100,000 to the value of your home

When it comes to selling your home, presentation is crucial to the pre listing process; apart from location and size, presentation is the third factor in determining the value.

A well presented frontage with newly painted masonry, front door and well maintained garden will have the Brits digging deeper into their pockets to acquire the home with kerb appeal.

The average house price in Hampstead is around 5 times that of the London average. A well presented home in the area will add between 5-8 % compared with a similar one that has not been maintained over the years.

Whilst not everyone has the experience or the resources for extensive renovations before moving in, the majority of purchasers will want a turnkey investment that is in the least livable, in order to make improvements in stages. Interestingly, tenants’ expectations have exceeded that of buyers in recent years, especially as they are being asked to pay market rents to service someone else’s mortgage with the owner making a profit.

My top 5 tips

1. Fresh paint work to the front door and porch

2. Clean and well maintained windows and frames

3. Clean and tidy garden

4. Polished or new hardware for the front door

5. Exterior lighting- a well lit frontage is a sign of maintenance and good security

The majority of house hunters will attend a viewing for a well presented home and make their initial judgements on the first impression. Likewise, an equal number will reject a property and not even bother to venture inside if the exterior is unkempt with an overgrown garden.

British home owners on average don't carry out external maintenance that often. In fact, most leave it for more than 8 years and almost 25% of home owners haven’t done any external maintenance in over 15 years.

People are moving home less than they did a generation ago.In fact, in Hampstead , its once every 18.5 years. As Birts spend most of their time indoors, the exterior is often “forgotten” about

Why is kerb appeal so important?

We all know that we don’t get a second chance to make a first impression, when selling a home it’s vital to get that right. After all, it’s the first thing prospective purchasers will see when they visit for an inspection.

The rise of social media has seen the number of home exteriors photographed go up significantly in recent years.

The likes of Instagram and Pintrest have given inspiration to a number of British home owners and would be house hunters.

Whether you are selling or letting a “back to basics" approach in making sure your property is in good condition will help you to get your home sold or rented in the quickest possible time, whilst maximising the value. In today’s world of Internet savvy consumers, purchasers and tenants do plenty of research before booking that viewing.

Londoners, like other city dwellers are time poor, generally living fast paced lives and they want to see homes that they aspire to, so taking care of the exterior is as important as the interior. As a vendor or landlord in today’s competitive market, presentation is crucial, as your home is being offered in competition with- not in isolation to the rest of the local market.

Friday 2 February 2018

Hampstead Property Values are 2.1 % higher than a year ago – My predictions for 2018












As you are all aware the London property market and has been subjected to its fair share of adverse press commentary in the past 12-18 months. In the financial news there was the usual yearly round up and as the UK economy and its housing market are inextricably liked there were generous air time and column inches devoted to the future of the British housing market. Following on from that, here is my forecast for Hampstead in 2018.

Mortgage interest rates are very low, despite the slight increase of 0.25% by the Bank of England. For example, the average 5-year fixed rate mortgage at 1.98% (down from 3.47% in 2014) and 2-year fixed rate at 1.47% (down from 2.37% in 2014. From an area perspective. The Hampstead and Kilburn ward has low level unemployment of just 3.4 % making for a stable local economy. The recent figures show that only 519 properties were sold in 2017, this restriction of supply has put an upward pressure on prices meaning Hampstead property values are 2.1% higher than a year ago.
In 2018, the biggest concern is raising inflation that has reached 3.1%, the highest in 6 years. This is continuing the squeeze on household budgets with wages not having risen by as much in real terms. Looking through the data for the number of properties listed there were no less than 240 flats and houses with price reductions throughout 2017. Much of this could be down to optimistic expectations of house sellers at the time of listing.

The political and economic headwinds of the past 12-18 months will continue to dominate the headlines in 2018.How this will affect Hampstead house prices will depend on the outcome of the Brexit negotiations and the impact they will have on the UK economy as a whole. This and the Stamp Duty revisions have subdued activity in the local market. Throughout 2017, the weaker pound saw a high level of interest from overseas buyers in Central London, enabling them to acquire certain homes and investments at a discount. However, if the UK gets a poor Brexit deal, the finance and banking sectors will be affected and that will have a significant impact on the London market.  
My message to all Hampstead home owners and landlords is to keep a close eye on the Central London market because what happens there has an effect on the region as whole, but not to panic if prices suddenly fall. Since 2007 the Central London property market has seen house prices grow by 77% as where in Hampstead they have increased only by 51.1 %. A heavy correction in Central London will have a ripple effect to the suburbs, albeit more subdued.
Hindsight is better than foresight and economic predictions are all well and good when you know what’s round the corner. The Brexit negotiations currently underpin the political and economic landscape; the outcome shall determine which direction the economy and housing market take.  In truth, none of us know what Brexit will actually look like so it’s a case “wait and see”.  
So, what’s in store for Hampstead house prices over the next 12 months? I believe they will end up between 1% -1.5% and it will be a bumpy ride on the way.

If you want to know more about my thoughts on the Hampstead Property Market, visit the Hampstead property blog www.nw3propertyblog.com

How Much Is Your Property Worth? Click Here To Find Out For FREE

If you are looking for an agent with experience that can help you find the right tenant for your property, then contact me to find out how we can get the best out of your investment property. Email me on chris@ashmoreresidential.com or give me a call on 020 8366 9777. 

Don't forget to visit the links below to view back dated deals and Hampstead Property News.





Monday 29 January 2018

Sealed bids battle in Hampstead- Useful or Outdated?

So here’s the scenario, there is a popular property on a sought after road and there has been lots of interest generated and as a result an open house has been arranged. There have been lots of offers coming in and the owner is advised to use the process of a sealed bid, however, offers related to a property do not generally come with a loving kiss!
Sealed bids are a useful tool to be used at times when demand significantly exceeds supply, especially when it is that ‘special’ property.

Agents don’t only use sealed bids for high value properties, it’s a method of sale used in all price brackets.  However, in my view it’s an outdated system one where it should be more formalised, restructured and transparent.  If you have been fortunate or unfortunate enough to be in the sealed bids group its a little “cloak and dagger” and your fate is decided by strangers.  Nevertheless, buyers should have to prove in advance of making their bid  (primarily sellers are most concerned with this aspect of the transaction), how ‘proceedable’ are the buyers, for example, is the sale going through to completion.  


So here’s the scenario, there is a popular property on a sought after road and there has been lots of interest generated and as a result an open house has been arranged. There have been lots of offers coming in and the owner is advised to use the process of a sealed bid, however, offers related to a property do not generally come with a loving kiss!
Sealed bids are a useful tool to be used at times when demand significantly exceeds supply, especially when it is that ‘special’ property.
Agents don’t only use sealed bids for high value properties, it’s a method of sale used in all price brackets.  However, in my view it’s an outdated system one where it should be more formalised, restructured and transparent.  If you have been fortunate or unfortunate enough to be in the sealed bids group its a little “cloak and dagger” and your fate is decided by strangers.  Nevertheless, buyers should have to prove in advance of making their bid  (primarily sellers are most concerned with this aspect of the transaction), how ‘proceedable’ are the buyers, for example, is the sale going through to completion. 

Preparing for the ‘sealed bid’ process
From the conception of looking at properties and going to view that special one we dreamed about, can feel like an emotional rollercoaster, perhaps we envisage sitting at the kitchen table reaping the benefits of all our hard work but the reality is quite a long way from that picture.    To get the ball rolling it’s probably best to get the vendor to accept an offer before it goes down the sealed bids process.  That’s why it is essential to have all the relevant information ready. 

However here are some thoughts about how to navigate through the sealed bids process.
·        In my own experience we, (my wife and I) acted quickly and found out from the agent as much as we could about the seller.  We met with the vendor as we did not want to become a number on the piece of paper.  One of the vendors criteria for selling the property was for a family to move in.  This is where he raised his family and this was an important factor for him to pass on a family home in a family orientated area.  Subsequently, the crux of the story was we were prepared to wait (quite a long time) this was crucial in the process of buying the property.  All these factors have to be kept in mind so preliminary investigations are crucial.  

·        Submitting the highest bid won’t necessarily secure the property for the eager purchaser. The prospective buyer is asked to submit their ‘best and final’ bid in writing, all offers are considered by the vendor and agent, with all the information gathered, a decision is then made.But, at this stage because it is not a legally binding decision on either parties, seller or buyer if someone else comes along with a bigger wallet then it’s all change.  If you require a mortgage, provide a copy of your ‘agreement in principle’  - if you have a property to sell provide the status of the sale or if you are buying the property in cash, then proof of the funds will greatly help.


·        Offering an unusual number means that no one else will be offering the same amount and it shows that you have given this matter much thought.  Try not to get caught up in the romance of it all and offering above what you can afford is not viable, offering the highest you feel most comfortable with is the most feasible, after all the highest bid doesn’t necessarily secure the deal.
Fundamentally, we know that buying a home is the biggest financial purchase of our lives and we have to get it right.  It’s human nature to be emotionally involved and hopefully reading some of the tips above will help prepare you if you find yourself in such a situation.

Guidelines for vendors:
·        How soon can they move?  Do the buyers timings fit with yours and are they prepared to wait if there is a delay in selling for whatever reason.
·        Consider all the offers on the table.  While the aim is to achieve the best possible price think about is this the best buyer for your position.
·        What deposit are your buyers offering?  If they have a large deposit then securing a mortgage will be easier.
·          Are they chain free?  how flexible are they?
·        Have they appointed a solicitor?


How Much Is Your Property Worth? Click Here To Find Out For FREE

If you are looking for an agent with experience that can help you find the right tenant for your property, then contact me to find out how we can get the best out of your investment property. Email me on chris@ashmoreresidential.com or give me a call on 020 8366 9777. 

Don't forget to visit the links below to view back dated deals and Hampstead Property News.






Tuesday 17 October 2017

To down size or not to down size, that is the question?

Moving is a big decision and never an easy one; the house you are in has memories packed to the rafters, good and bad. The children have gone and the commitment of running a household with surplus rooms is difficult to manage and maintain. So what are the options?
Firstly, do your research; there are many things to consider.  For example, do you follow your dream of living by the coast or move near your children?  Will you miss the extra space in the house? can you maintain outside space?

Housing for older people report was written with this interesting piece of information when looking to downsizing-
“One of the main barriers for older people and pensioners wishing to sell their family home and relocate is the lack of suitable choices. In June 2015, Legal & General commissioned a report which found that when last time buyers are looking for a new home, the most common preferences are being close to family and friends (32%), being near their current neighbourhood (18%), having easy access to healthcare (16%) and being located near shops (10%).1”

In reality all of these need careful consideration as downsizing is a major upheaval and there are significant costs involved, so it’s essential to factor in before you make you move. 
Apart from the money you may have collected by selling your no longer useful house belongings, smaller living spaces are generally less expensive and incur lower monthly maintenance cost, lower mortgage or rent payments, lower energy bills and fewer items to fix around your smaller accommodation.  It’s no secret that the housing costs take up a huge chunk off your disposable income and any way to decrease these expenses will let you have more breathing room when managing your finances.

This is also a good time to get rid of any unwanted furniture or lots of household items that is no longer required, what needs to be considered will it fit into your new planned abode?  All these items can be either given to charity or if they are in relatively good condition sold to provide welcome cash welcome cash injection to help offset the cost of the move.      

You’ll not only have to pay estate agency costs for selling your home, but you’ll also have to pay stamp duty on your new home, as well as covering removal costs and legal fees.  These costs, combined with the stress of a move, can be too much for many people, who may want to consider alternatives to downsizing to free up funds from their property. 
The easiest way of getting the most up-to-date information that you need about moving home is to consult a respected, local professional

In essence, downsizing doesn’t have to be a hassle or a traumatic experience and parting with the things you own can definitely be emotional, but try to think about the life you’ll get in exchange for the things you’re giving away, I believe the term is ‘Less is more!’

If you’re moving into a smaller accommodation in the area you’ve always wanted, try to make sure that the new life is as happy as possible.  If you’re downsizing because you need to save money, think about the money you’ll save and all the money you have received from selling unwanted goods, use it as an incentive to never get stuck in a tricky financial position again.  Whatever your reasons are, attitude matters and the more positive you can make the process, the smoother it will go.

1)      Communities and Local Government (CLG) Committee inquiry - Housing for older people Written submission from NAEA Propertymark March 2017



How Much Is Your Property Worth? Click Here To Find Out For FREE

If you are looking for an agent with experience that can help you find the right tenant for your property, then contact me to find out how we can get the best out of your investment property. Email me on chris@ashmoreresidential.com or give me a call on 020 7435 0420. Pop in for a chat – we are based at Ashmore Residential, 5 Netherby Gardens Enfield EN2 7PA. There is plenty of parking and the kettle is always on.

Don't forget to visit the links below to view back dated deals and Hampstead Property News.


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