Following on from my recent article
about the state of the Hampstead property market and in particular what had
happened to the rents Hampstead tenants have had to pay since the Credit
Crunch, if you recall, I said rents in Hampstead are 21.49% higher than
they were in 2008. A Hampstead landlord has since rung me after reading the Hampstead
Property Blog, wanting to know more of the story of what was happening to
current rents in the area. The reason he asked
was that his current agent hadn’t increased his rent for a number of years and
was concerned if he was getting the best return from his buy to let investment.
The Hampstead rental market is all about supply and demand
(isn’t it so in all parts of the economy?). On the supply side, 652 rental
properties have come up for let in the last 31 days in Hampstead. It sounds a lot
until you consider there are 20,276 rental properties in Hampstead, that means
only 3.21% of the rental stock of properties in Hampstead are coming onto the
market each month (it is normally around 5%).
One reason for this lack of new rental properties coming on the market is
the fact that tenants seem to be staying in properties longer.
With this lack of supply, newer tenants have to pay more to
secure the property they want. And
this is the crux of the matter ...properties
they want. Older properties in Hampstead, that haven’t been maintained, still
retain their wood chip wallpaper from the 1970’s and thread bare carpets have
seen their rents drop. Tenants want either modern properties with all the
mod cons or older style properties that have been presented to an exceptional
standard – and they are prepared to pay for the privilege. Rents for top
quality properties in Hampstead have risen by 2.3% in the last month. Any properties,
old or modern, put on the market in good or excellent condition will rent in a
matter of days.
Interestingly, looking at Hampstead property values, the
Land Registry have just released their latest set of data on property values.
Throughout April 2015 (the latest set of data), property values fell in Hampstead
by 0.2%, however, they are still 10.2% higher than they
were a year ago. When one looks at the
regional picture, the Greater London average property values rose by 2.3% in
the last month. The difference doesn’t concern me, as the regional and local
property values always even themselves out over the months.
Looking forward, after considering all the statistics and
talking to other property professionals, I expect property values in Hampstead
to rise by 3% to 5% over the coming 12 months, following the Conservative
party’s election victory. In a forthcoming article, I will discuss
how the number of properties changing hands each month has dropped considerably
in the last 10 to 15 years in the area.
...And so back to our landlord. Each property is unique and
so as his tenancy agreement allows him to inspect the property with notice to
the tenant, we will be visiting the property next week.
Be you an experienced investor or first time landlord/vendor (you are all welcome at ours) feel free to visit the office on Heath Street just 50 meters from Hampstead Tube or if time is precious drop me a line chris@ashmoreresidential.com.For more in depth thoughts and opinions like
this on the Hampstead Property market ...visit the Hampstead 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.
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