Greater
London property asking prices jumped by more than £16,000 to £582,438 in
February according to Rightmove, an increase of 2.8% from January and 9.7%
higher than a year ago.
After the traditionally quiet months of January and February, the property market has started to warm up, but talking to some Hampstead Estate Agents, they are reporting their lowest ever stocks of quality property for sale. However, asking prices have no relation to what property sells for (ie their REAL value), is the issue a lack of supply?
After the traditionally quiet months of January and February, the property market has started to warm up, but talking to some Hampstead Estate Agents, they are reporting their lowest ever stocks of quality property for sale. However, asking prices have no relation to what property sells for (ie their REAL value), is the issue a lack of supply?
Putting
aside Hampstead’s continual housing supply shortage, (we only built 4,293
properties in the last decade but the population of Hampstead grew by 15,197), this
is now, according to some people, being exaggerated by an increase in homes
being owned by buy to let investors, who tend to be buying a property as part
of a long term pension plan and are more likely to keep it for longer than an
owner occupier would. I have also seen unwillingness among homeowners looking
to move, to put their own property on
the market as they can find few suitable properties to make it worth their
while going through the whole moving process.
Talking to
some Hampstead landlords only last week, I said that I believe this is the new
norm in the local property market, and is the consequence of over 35 years
of not enough homes being built to meet the escalating growth in household
numbers, resulting in a lack of quality homes for sale in many popular parts of the area.
So are
landlords to blame? Well, on one side of the coin, yes they are. If they buy a
property to rent out, that means someone can’t buy it to live in. However, it
doesn’t matter if someone wants to live in a property if they can’t afford the
deposit and upkeep .. and the youngsters of Hampstead still need a roof over
their head. So on the other side of the coin, if the Council aren’t building
any properties and people can’t afford the large deposit for the mortgage, then
Hampstead landlords have stepped in and bought property to rent out to them. Hampstead
landlords have bought 5,552 properties over the last decade (investing
approximately £4.308billion buying those Hampstead rental properties), meaning
there were at the last count, 44,347 Hampstead properties being privately
rented out to tenants. Hampstead tenants are in fact getting a good deal as
well, as average rents in Hampstead are 20% above where they were seven years
ago (because inflation during the same timeframe has been at 26%). That sounds
like a win-win situation for everyone to me. Stop blaming landlords and start
building more properties in Hampstead .. that is the only answer.
In the
meantime, the demand from tenants for Hampstead property is only set
to rise over the coming years. If you want some advice and opinion on where (or
not) to buy, please visit the Hampstead Property Blog where we discuss such
matters in greater depth www.NW3propertyblog.com
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.
Don't forget to visit the links below to view back dated deals and Hampstead Property News.
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