After the shock of the Conservatives returning to power with
a majority at Westminster, all the potential issues and possible uncertainties
of a hung parliament has lifted the cloud from the Hampstead property
market. Talking to other Hampstead agents,
surveyors and solicitors in the area over the last few days,there are signs
this has started a new impetus in the Hampstead property market after a subdued
six months.When an amalgamation of tougher lending conditions,a natural
correction after the strong recovery in Hampstead property prices in 2014 and
political uncertainty ahead of the General Election slowed demand.
Against the back drop of Labour’s election promises of rent
controls and three year tenancies, some Hampstead buy to
let landlords were waiting to see how these new policies would be implemented
before they committed themselves to buying more property for their buy to let
portfolio.Now that uncertainty has been removed,the long term picture is very
positive.
So,with all that uncertainty now removed, where next for
the Hampstead property market? Well,with inflation at zero and with the Money markets happy David Cameron is still
at No.10, the Bank of England have no reason to raise interest rates until 2016
at the earliest. As mortgage rates are at their lowest levels since 2010,
landlords with large deposits will now be wooed by the mortgage companies in
the coming months with low rates.
You see, over the past couple of years,Hampstead landlords
have benefitted from a booming local jobs market. Unemployment in Hampstead and Kilburn has
dropped to 2.4%, as a year ago, 2,466 people were claiming
unemployment benefit compared to today’s 1,810.With more jobs and better pay,as the level of rents is directly linked to tenant’s wages, there has been an
increase in the rental prices tenants are willing to pay for good quality Hampstead
properties.
Some landlords might be nervous about Tory’s plans for the
housing market over the next five years in terms of tenant demand for their
rental properties. One plan is for Housing Association tenants to have the
right to buy their property. These kind of tenants were never in the private
rented sector and will actually increase the supply of properties in the
housing stock in decades to come. The Government ‘Help to Buy Scheme’ has only
helped to buy one Hampstead property since April 2013. Considering 684 properties have changed hands
in the last year alone in Hampstead , I don’t think it has made a
huge difference to our local property market.
The biggest matter when it comes to tenant demand of rental
property going forward, comes from the shift in the mindset and attitudes
towards renting itself.Twenty years ago you were seen as a second class
citizen if you rented a property. In Hampstead, as in the rest of the UK (apart
from Central London areas of Marylebone and Mayfair), renting continues to
offer good value for money for tenants. If you are an existing landlord in Hampstead or
thinking of becoming one (or as we like to call you ... a FTL
... a ‘first time landlord’), then I must suggest you seek out
specialist advice and opinion. Like many agents in Hampstead , we will happily
give you our opinion on the current state of the market and the advantages/disadvantages to
investing in the Hampstead property market if you pop into our offices.
However, if time is at a premium, another source of information on the Hampstead Property Market is the NW3 Property Blog 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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