Hampstead and Belsize Park Property Market- 1st quarter review

Good afternoon, 
As we enter the second quarter of 2015,there have been some interesting developments in the market which will no doubt set the scene for the remainder of the year. Generally, I talk about the buy-to-let opportunities
 and once per week publish my article with updates on the local market. The market is forever changing and there are also things that may have an adverse effect and are crucial to its future direction. Two local landlords called in to the office this week to sign tenancy renewal documents over a cup of coffee and we got chatting about the local market. Most of our clients live and generally invest locally, though they remarked that prices seem to have shot up considerably.

There has been plenty of property coming to the market over the past couple of months in anticipation of the Spring market. However, it appears that much of it is one and two bedroom flats at the level of £500,000 plus,attracting 4% stamp duty,and it's sticking. Looking at the trends for the same period in 2013 and 2014, property at this level was selling within 14 days of coming to the market. Fast forward to today, there is comparable property listed from February that's still very much available. 

Let me explain, the looming General Election has no doubt made political headwind, though it seems that purchasers are sitting tight as activity has slowed locally.Despite all the pledges that the main parties are making, opinion polls and all the permutations; the reality is that it's too close to call.Therefore, this uncertainty has put the brakes on things and until such time that we know who gets the keys to Number 10 Downing Street, it will remain so. Some of the talk from the Labour camp about the Mansion Tax, banning of letting agent fees to tenants and introducing rent controls have certainly ruffled a few feathers. For the Hampstead and Belsize Park market,these policies will no doubt have an affect on rents,supply of property and knock the confidence of Buy-To-Let Investment in the area.The bottom line; the General Election will be centered around the UK economy and it's inextricably linked with the housing market.

As we work in a prime area, the majority of property here is at the middle and upper end of the market. Therefore, Capital appreciation is very high over a given period of time. Much of the property I have seen of late is just what the rental market needs; well presented, bright, in superb locations and some in blocks that have a high tenant population,but overpriced. Investors are looking for a combination of yield and capital growth, so in order to strike that balance, it's all about buying at the right level.

Below are some examples of my findings and opinions on each. As i don't sell property and specialise in lettings these are being assessed as Buy-To-Let Investments.

1) Frognal NW3 - 1 bedroom flat with garden and allocated parking.On the market with our friends at Foxtons, has a lot going for it with a great location and plenty of living space. This flat will achieve a rent of £2385 per calender month, compared with the asking price of £799,950, it will give you a gross annual yield of 3.7%.There are the added costs of service charges and ground rents to consider also.There is little demand for 1 bedroom flats above this level of rent in the local market, so any overpricing in that regard will also mean a costly void period for the prospective investor, thus diminishing the yield even further.Click on the link below for the full details. 

http://www.rightmove.co.uk/property-for-sale/property-50195144.html

2) Pilgrims Lane NW3 - A smart one bedroom first floor, its about average size for the area and close to Hampstead Heath. This is being offered for sale with Knight Frank with an asking price of £625,000. This flat will acahive a rent of £1995 per calender month, giving you an gross annual yield of 3.9%, less the usual expenses. Full details as below

 http://www.rightmove.co.uk/property-for-sale/property-48872861.html


3)Kings College, Finchley Road NW3- A two bedroom flat in a well kept block, just a short walk to the local shops and transport .Knight Frank are the selling agent and the asking price is £750,000. This flat will achieve a rent of £2275 per calender month in the current market. This will give an annual gross yield of 3.7%. This block will typically command a service charge of around £3,000 per year, plus the usual fees for letting, reducing the already small yield.  

http://www.rightmove.co.uk/property-for-sale/property-49896374.html



Should you need advice about investing in the NW3 area or are considering a Buy-To-Let investment, my brains are here to be picked. Feel free to email me chris@ashmoreresidential.com or pop in to see me for a chat over a cup of coffee at our office on Heath Street. 

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If you are looking for an agent with experience that can help you find the right tenant for your property, then contact us 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 on Ashmore Residential, Suite 7, 25-27 Heath Street, London, NW3 6TR. The kettle is always on.

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