Property values in Hampstead rose
by only 0.8% in March. This follows several months of sluggish activity in the Hampstead
property market in the run up to the Election, putting the average price of a
property in Hampstead at £1,415,300, 12.7% higher than in
March 2014.
Interestingly, the Council of
Mortgage Lenders and Estate Agent trade bodies over the last few months have reported
seeing a fall in mortgage lending and enquiries from prospective homebuyers. This
is important because it comes amid an overall fall in housing market activity
in Hampstead. Data from the Land Registry said completed house sales in Hampstead
in the three months to January 2015, (the most up-to-date figures available)
fell by 36.98% compared to the same three month period up to January 2014.
However, I believe that the
slowdown in property sales in Hampstead is supporting Hampstead property values,
as there is a shortage of houses coming onto the market. Even though in the
whole of the first Quarter of 2015, Hampstead property value increases may seem
subdued when compared to 2014, let us remember, property values are still
rising well above the level of inflation.
As I have said many times before,
the population in Hampstead is growing at a much higher rate than the number of
properties being built. This increasing demand for a roof over people’s head,
which is outpacing the supply of new houses being built in Hampstead, is creating
a severe imbalance in the Hampstead (in fact the whole of UK’s) housing market,
thus making homeownership an ever increasingly distant dream for many of Hampstead’s
potential first time buyers.
In fact, I still maintain the
view that house prices are likely to rise by around 3 to 5% in Hampstead in
2015, even after taking into account this blip at start of the year. The reason
being is that the rise reflects both strong economic conditions and steady
market conditions with (and this is the most important factor) very low numbers
of properties on the market.
Many Buy to Let landlords know
that investing in the Hampstead property market is a long-term strategy of 10,
20 even 30 years. Governments come and go, but unless Camden London Borough Council
start to build hundreds of new properties a year to make up for the shocking lack
of supply, Hampstead people will always want a roof over their head, and
irrespective of which party is in power, if there aren’t any council houses and
they can’t (or are unable to buy), a demand for rental properties will always
remain.
As my existing Hampstead landlord clients will testify, whether you
manage your property yourself, or another local agent manages your properties,
everyone is always made to feel welcome when they pop in for a coffee at our
offices on Heath Street to discuss anything to do with the Hampstead property
market, how Hampstead compares with its closest rival towns. I don’t bite, I
don’t do hard sell, and I will just give you my honest and straight talking
opinion. However, if you are too busy to pop into town, you could always visit
the Hampstead Property Blog www.NW3propertyblog.com for
advice, intelligent commentary and analysis of the Hampstead Property market.
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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