Despite the UK economy heading in the right direction with
record low mortgage rates and unemployment
figures dropping, the rate of
property prices rising in Hampstead have tempered since the start of the year.
This slow but sure downward trend in the rate of growth has been in evidence
since mid-2014. Property value increases
continue to outpace the growth in salaries, however the gap is closing, helped
by a lift in salaries over the last 6 months. Property values in the London region as a whole are 9.1% higher than
a year ago. Compare this to the
neighbouring regions of the South East also at 9.1% higher and the East at 8.8%, the majority of the country continue to
see annual house price gains - the exception being Wales which recorded a
slight decline of -0.6%.
Even with the tempering in house price inflation, it does
not necessarily change my outlook that property prices are likely to be firmer
over the second half of 2015 amid heightening activity in the Hampstead
property market. As stated in a previous
article, there is a current shortage of properties on the market, restricting
supply, which in turn will provide stability and support to Hampstead property
prices. Therefore, my overall opinion is that Hampstead property prices will
rise by 7% over 2015 and roughly the same in 2016.
Property investment is a long term business. Buying the right sort of property is vital. I have recently been speaking with a number of Hampstead
landlords about the importance of a balanced portfolio, when buying and renting
out property. The balance between buying properties that offer good monthly
returns (high yields) but quite often offer poor capital growth (i.e. they
don't increase in value that much over the years compared with the average)
verses properties that do go up in value quicker but often offer a lower yield.
So, what type of properties have
performed best over the last few years in Hampstead, especially in terms of
their capital growth?
When comparing what the average price of detached, semi
detached, terraced and flats were selling for back at the start of the
Millennium to the present. The results
are quite remarkably different, almost like a bag of Liquorice Allsorts,
as the different types of property have performed poles apart over the last 15
years:
· ·Detached Houses
in 2000 were selling on average for £1,576,667 and so far in 2015,
they have been selling on average in Hampstead for £3,650,000 a rise of 132
·Semi -Detached
Houses in 2000 were selling on average for £710,000 and so far in 2015, they
have been selling on average in Hampstead for £3,135,000 a rise of 342
·Terraced Houses
in 2000 were selling on average for £394,723 and so far in 2015, they
have been selling on average in Hampstead for £1,711,499 a rise of 334%
· Flats and
Apartments in 2000 were selling on average for £251,514 and so far in 2015, they
have been selling on average in Hampstead for £863,018 a rise of 243%
Moving forward, what should new and existing buy to let
landlords do with this information? Well,
the questions I seem to be asked on an almost daily basis by landlords are:
·
“Should I sell my
property in Hampstead?”
·
“Is the time
right to buy another buy to let property in Hampstead and if not Hampstead,
where?”
·
“Are there any
property bargains out there in Hampstead to be had?”
Many other Hampstead landlords,
who are with both us and other Hampstead
letting agents, like to pop in for a coffee, pick up the phone or email us to discuss the
Hampstead property market, how Hampstead compares with its closest rivals (Westminster,
Chelsea or Kensington), and hopefully answer the three questions above. I don’t
bite, I don’t do hard sell, I will just give you my honest and straight talking
opinion and look forward to hearing from you.
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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