Many landlords have been asking me my thoughts on the
Hampstead property market recently, and in particular, what is happening to
property values. My calculations show property values in Hampstead quite
interestingly grew in the month of September by 0.6%. When one looks at the
annual growth, Hampstead values are 8.2% higher (when comparing Sept 14 to Sept
15). However, there are signs that the
fundamental growth of property values in Hampstead has now peaked, despite
those average property values being above levels recorded in 2007 (just before
the 2008 crash).
Even though prices are higher this month, this rise of
Hampstead property values masks the underlying truth in what is really
happening to local property values in the town. Throughout 2015, property values have
been yo-yo like on a month by month basis, being quite volatile in nature. For example;
·
- September 2015 0.6% rise
- August 2015 0.5% rise
- July 2015 1.1% rise
- June 2015 1.0% rise
- May 2015 0.1% rise
- April 2015 1.5% rise
- March 2015 0.3% drop
This is in
part due to seasonal factors, as well as mortgage approvals increasing over
June and July and then falling by over 15% in August, according to the Council
of Mortgage Lenders (CML).
The outlook for the Hampstead property market remains positive against the foundations of low mortgage rates and growing consumer confidence. However, I do have to question the recent CML mortgage data and whether that raises issues over whether the rate of growth since the Tory’s were re-elected in the early summer can continue? However, on a positive note, Hampstead property values are still running ahead of salaries and average property values are 69.5% above the levels recorded in 2007.
The outlook for the Hampstead property market remains positive against the foundations of low mortgage rates and growing consumer confidence. However, I do have to question the recent CML mortgage data and whether that raises issues over whether the rate of growth since the Tory’s were re-elected in the early summer can continue? However, on a positive note, Hampstead property values are still running ahead of salaries and average property values are 69.5% above the levels recorded in 2007.
Talking to
fellow property professionals in the suburb, demand for property has been
showing signs of moderating in the final few months of 2015, which in turn will
lead to a slight slowdown in the pace of house price growth in the run up to the
festive season. You see, it is really important not to read too much into one
month’s (September’s) headline figures.
Readers might
be interested to note that before
the 2008 property crash, all the UK region’s housing markets tended to move up
and down in tandem like the Hampstead Synchronised Swimming team at the Parliament
Hill Leisure Centre Swimming Pool! Since
then though, the Greater London property market took off like a rocket in
2009/10, whilst the rest of the UK only really started to grow in 2012/13, and
even then that growth was a lot more modest than the Capital’s. Looking closer to home, it can even be
different in neighbouring towns, areas and cities, so whilst Hampstead property
values are 8.2% higher than a year ago (as mentioned above), Chelsea property
values are only showing 2.3% higher (than a year ago)
I cannot stress enough the importance of doing your
homework. One source of information and
advice is the Hampstead Property Blog where I have similar articles to this
about the Hampstead property market and what I consider to be the best buy to
let deals around at any one time in the suburb, irrespective of which agent it
is on the market with. If you haven’t
visited and you are interested in the local property market in Hampstead….. you
are missing out! 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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