Property Advice

Tuesday 17 October 2017

To down size or not to down size, that is the question?

Moving is a big decision and never an easy one; the house you are in has memories packed to the rafters, good and bad. The children have gone and the commitment of running a household with surplus rooms is difficult to manage and maintain. So what are the options?
Firstly, do your research; there are many things to consider.  For example, do you follow your dream of living by the coast or move near your children?  Will you miss the extra space in the house? can you maintain outside space?

Housing for older people report was written with this interesting piece of information when looking to downsizing-
“One of the main barriers for older people and pensioners wishing to sell their family home and relocate is the lack of suitable choices. In June 2015, Legal & General commissioned a report which found that when last time buyers are looking for a new home, the most common preferences are being close to family and friends (32%), being near their current neighbourhood (18%), having easy access to healthcare (16%) and being located near shops (10%).1”

In reality all of these need careful consideration as downsizing is a major upheaval and there are significant costs involved, so it’s essential to factor in before you make you move. 
Apart from the money you may have collected by selling your no longer useful house belongings, smaller living spaces are generally less expensive and incur lower monthly maintenance cost, lower mortgage or rent payments, lower energy bills and fewer items to fix around your smaller accommodation.  It’s no secret that the housing costs take up a huge chunk off your disposable income and any way to decrease these expenses will let you have more breathing room when managing your finances.

This is also a good time to get rid of any unwanted furniture or lots of household items that is no longer required, what needs to be considered will it fit into your new planned abode?  All these items can be either given to charity or if they are in relatively good condition sold to provide welcome cash welcome cash injection to help offset the cost of the move.      

You’ll not only have to pay estate agency costs for selling your home, but you’ll also have to pay stamp duty on your new home, as well as covering removal costs and legal fees.  These costs, combined with the stress of a move, can be too much for many people, who may want to consider alternatives to downsizing to free up funds from their property. 
The easiest way of getting the most up-to-date information that you need about moving home is to consult a respected, local professional. 

In essence, downsizing doesn’t have to be a hassle or a traumatic experience and parting with the things you own can definitely be emotional, but try to think about the life you’ll get in exchange for the things you’re giving away, I believe the term is ‘Less is more!’

If you’re moving into a smaller accommodation in the area you’ve always wanted, try to make sure that the new life is as happy as possible.  If you’re downsizing because you need to save money, think about the money you’ll save and all the money you have received from selling unwanted goods, use it as an incentive to never get stuck in a tricky financial position again.  Whatever your reasons are, attitude matters and the more positive you can make the process, the smoother it will go.

1)      Communities and Local Government (CLG) Committee inquiry - Housing for older people Written submission from NAEA Propertymark March 2017



How Much Is Your Property Worth? Click Here To Find Out For FREE

If you are looking for an agent with experience that can help you find the right tenant for your property, then contact me 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 at Ashmore Residential, 5 Netherby Gardens Enfield EN2 7PA. There is plenty of parking and 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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Friday 6 October 2017

Hampstead Property Market – Quarterly Update

It’s been an interesting and challenging year for both landlords and vendors. Speaking with several landlords in the local area, many have expressed concerns about their tenants’ ability to pay and balancing that with the need to have the rental income at least rise with the rate of inflation. In previous years, rents were rising above inflation, though wages over the past 12 months have not kept up with inflation which has risen to 2.9%.

In the peak season of the local rental market (between June and September) the rents tenants have paid are the same as in 2016 and that is for properties that have been well maintained, offered in good overall condition. Over the past year, rents in the Hampstead area have fallen in real terms by an average of 5.5% at the lower and middle end of the market. At the upper end, that is primarily geared towards the corporate sector, has been far more precarious with falls exceeding 10%. Crucially, we have seen tenants looking at other locations outside of the Capital for reasons of affordability, and that, in part, has also brought about the increase in supply, leaving Londoners more choice.

Hampstead landlords have naturally been a little nervous about the downward trend as there is also the crucial element of what has been happening to Capital values, which is of interest to all property owners in the area. Over the past 6 months, the evidence from the Land Registry for recorded transactions indicates that average property values (for all property) in the Hampstead area have fallen from £1,603,188 to £1,377,580. In monetary terms, that is £225,608 or 14%.
We have to also take into account the seasonality of the property market, with the majority of these sales having been agreed in the spring and completing in the summer months.
Since the beginning of the year we have seen an increase in supply of 15% in total number of properties available to 715, this has slowed house price growth. If you are considering selling your home, it’s important to remember that your property is on the market in competition with – not in isolation to all the other homes on the market- therefore correct pricing is essential. In this information age society that we live in, everyone has access to every property on the market and will naturally compare your home with similar ones.

In the medium term, I maintain the view that the Hampstead property prices will stabilise and gradually recover. Despite the increased choice for buyers, if we go back a few years to the recession of 2008/2009, the availability of housing in the area is far less today than it was then. In 2008 for example, there were 1163 properties offered for sale in comparison to the 715 currently available. The falling supply of homes over recent years will help to keep prices relatively high over the medium to long term.



So what has brought about this trend?  There are a number of variables in the equation; firstly, fewer people are moving home as frequently, which means less property for sale. Secondly, Hampstead, like most areas, has a good proportion of buy to let property. Landlords tend to hold their investments, selling far less often than owner occupiers, removing property from the market altogether.

The next issue is the cost of moving, the revisions in Stamp Duty have made it far more expensive than before adding to the constraints of buying a home. We are also living much longer nowadays, therefore owner occupiers are much older and will move less often, especially as they reach pensionable age. Following on from that, Governments (past and present) ill thought out Housing Policies mean that we are about 50% down on the number of new homes that need to be built to address the supply/demand imbalance. We need around 250,000 built per year; current figures show a paltry 130,000 or so. Last, but not least, the mortgage rules introduced back in 2014 mean that lending criteria is far more stringent, limiting the level of borrowing a person can take on. 

This in particular, has had a significant impact on the Hampstead property market when you consider that the average house price for a terraced/semi detached home is nearly 5 times the London average.

To put all this into perspective, Hampstead homeowners who aren’t planning to sell, the downward trend in prices is what we see on paper and is a cycle of the current market. To those who are committed to selling, they are also buyers, therefore, even if you don’t achieve as much as you may like for your home, the one that you are buying won’t be as much.  
How Much Is Your Property Worth? Click Here To Find Out For FREE

If you are looking for an agent with experience that can help you find the right tenant for your property, then contact me 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 at Ashmore Residential, Suite 7, 25-27 Heath Street, London, NW3 6TR. There is plenty of parking and 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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Friday 25 August 2017

Hampstead Property Market – A year on from Brexit

The Land Registry has just released their latest set of figures for the Hampstead Property market. It makes interesting reading, as average property values in Hampstead dropped by 4.2 % in June. This leaves average property values 1.2 % higher than 12 months ago, meaning the annual rate of growth in the area fell to its lowest level since January 2012 according to a recent survey by Home track When we compare Hampstead against the regional picture, London property values rose by 2.6 % overall with buyer sentiment having had a more significant impact as a result of the EU Referendum and political uncertainty with a much weakened Conservative government.

Obviously this is a far cry from the price rises we were experiencing in Hampstead throughout 2014. At one point (August 2014 to be exact) property values were rising by 22.7% a year. All the same, the correction we are seeing will have a greater significance for distressed sellers who have a greater urgency to release funds.

However, the thing that concerns me is that the average number of properties changing hands (i.e. selling) has dropped substantially over the last couple of years in the area. For example in April 2014, 90 properties sold in Hampstead but in April 2015, that figure dropped to 41. The most significant event that had bucked the trend in 2016 was the announced Stamp Duty hikes on both primary residences and second homes which saw a substantial increase in supply in the first quarter with 133 properties sold in March of last year and for April 2017, the figure stands at 32.  Traditionally, the spring season is where the market starts to become active, though political headwinds over the General Election, stalled activity in the local market with a sharp fall of just under 22% of completed sales compared with the same period in 2015.

See the graph below - (Source Hampstead Property Blog Research)



In the main, the UK economy is centred around its housing market, the other reliable barometer are share prices in the large house builders like Wimpy homes with jaw dropping fall of 37.5%  and Barrat at a staggering 43%, all within a fortnight of the Referendum result. In June values in Hampstead fell by over 4% in real terms, though the market is hardly in freefall. Since then, the share prices for house builders have recovered well and the recent price falls we have seen in the local market will plateau in the near future. The Office for Budget responsibility has downgraded its forecast for the next 5 years showing average prices rises of 4.3% which is good news for the medium to long term.

The correlation between unemployment and house prices is strong. According to the ONS as of March the figure for the local constituency of Hampstead and Kilburn stands at 7.2% or 6,700, compared to the 10.7% of 2013, suggesting that the underpinnings of the local market are pretty robust. Overall, Brexit has caused a temporary wobble, though nothing significant enough for serious long term effect.  

As mentioned in my previous article, the more pressing issue is with inflation, currently at 2.9% and will likely rise into the final quarter of 2017. The Bank of England has dropped a subtle hint that rates may have to rise to bring it under control as the Sterling has weakened and imports are now dearer. Even so, over 85% of mortgages agreed so far  this year have been with fixed rates, very much with this in mind, and it’s a far cry from the early 90’s with rates at 15%.

Despite theses issues having impacted on the sentiments of purchasers and sellers, they will get fixed in time. The greatest threat to the Hampstead (and UK) property market is the shortage of new homes being built for a variety of tenures, especially in the big cities. When you consider that only 2.3% of all the land in the country is actually built on, the pressure on the Government to get its act together with a coherent housing policy is greater than ever. 

How Much Is Your Property Worth? Click Here To Find Out For FREE

If you are looking for an agent with experience that can help you find the right tenant for your property, then contact me 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 at Ashmore Residential, Suite 7, 25-27 Heath Street, London, NW3 6TR. There is plenty of parking and 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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Friday 11 August 2017

The Hampstead Property Market- Is This A Good Time To Invest?

The UK economy has taken a bit of a bashing over the last 2 quarters as we have seen some indicators that it may be heading into some choppy waters. The three  areas of concern are inflation standing at a four year high of 2.9 %  (with the figure expected to rise before the year is out), sagging wages and of course a weakened sterling. This slow but sure downward trend in the rate of growth has been in evidence since mid-2016. As many as 35 % of properties for sale in the Hampstead area have had their prices slashed and for those who are serious about selling need to be realistic and not optimistic in order to attract buyers. The local market is going through a period of stangnation rather than a boom, the asking price reductions mentioned above were on housing stock offered by vendors hoping achieve 2016 prices. Property values in the London region as a whole are only 1.2% higher than a year ago making second from bottom in the UK regional table. Compare this to the neighbouring regions of East Anglia, seeing the highest growth at 4.6% and hot on the heels in second place is the North West with house price growth at 4.2 %, the majority of the country continued to see annual house price gains with Wales outperforming London at 1.6%


Even with the correction in house price inflation and the current mood somewhat subdued, it does not necessarily change my outlook that property prices are likely to be firmer over the final quarter of 2017 with an average increase of around 2 % .As stated in a previous article, there is a current shortage of properties on the market, restricting supply, which has been falling consistently since the recession of 2008/2009 which in turn will provide some stability and support to Hampstead property prices.

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 has 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 remarkably different, almost like a bag of Liquorice Allsorts, as the different types of property have performed poles apart over the last 17 years:  


  • Detached Houses in 2000 were selling on average for £2,200,000 and so far in 2017, they have been selling on average in Hampstead for £5,350,000 a rise of 143%
  • Semi -Detached Houses in 2000 were selling on average for £1,220,000 and so far in 2017, they have been selling on average in Hampstead for £3,955,000 a rise of 227%
  • Terraced Houses in 2000 were selling on average for £800,200 and so far in 2017, they have been selling on average in Hampstead for £2,065,000 a rise of 158%
  • Flats and Apartments in 2000 were selling on average for £332,203 and so far in 2017, they have been selling on average in Hampstead for £1,015,079 a rise of 205%
S See the graph below - Source Hampstead Property Blog Research




For those who have invested in the local property market in recent years, 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 (St John’s Wood, Notting Hill, Chelsea or Kensington), I will just give you my honest and straight talking opinion and look forward to hearing from you.
How Much Is Your Property Worth? Click Here To Find Out For FREE

If you are looking for an agent with experience that can help you find the right tenant for your property, then contact me 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 at Ashmore Residential, Suite 7, 25-27 Heath Street, London, NW3 6TR. There is plenty of parking and 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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Monday 31 July 2017

My Tenant Has Disappeared – What Shall I Do?

In the main tenancies are conducted without disruption and within the usual processes and procedures, there will be a check out meeting and keys handed back to either the landlord, his agent or the Inventory clerk.

Though on the odd occasion, you may find that your tenant has just disappeared, what then?  Do you just re enter, clean the place up and re let?
Well, yes and no- and many landlords act instinctively and go with their gut feeling. The typical thing is to change the locks, though this puts you on the wrong side of the law with your actions resulting in an unlawful eviction.
You could get hit from both sides here as firstly, the Local Authority can prosecute you and secondly, if the tenant reappeared out of the blue, he/she could sue for compensation.
If you had reason to believe that the tenant had finally vacated, then this is your one line of defence. In situations like this and for the sake of covering your own back – best practice is to leave an abandonment notice on the door. save any comebacks.
The only drawback with this is if there was some kind of unforeseen event concerning your tenant; he/she may have been involved in a serious car accident and was in intensive care for 2 weeks or even the sudden passing of a close relative would both suggest that your tenant may not even have seen the notice.
As this is a Civil matter, in law there is the concept of what is known as Implied Surrender, this means that if the tenants actions were not consistent with vacating in the usual way, as a landlord you can accept the offer to vacate the property and go in and change the locks.
The question is how you know when this will apply – here are the four different scenarios:
1      Has the tenant indicated that he will vacate by a certain date?
If the tenant told you in April that he would be leaving in June and there was no further correspondence or contact and you visited the property say in July and saw there was no one there – it’s a fair assumption that your tenant has left. This however, may be subject to the following;

2     Have any keys been left behind?
This is the most important sign- if keys have been left behind, then it suggests that possession has also been given up.

3    Are any possessions left behind?
If you see no sign of any personal possessions left in the property, then it would be safe to assume that the tenant has given up possession of the place, especially, if the keys have also been found in the property.
In the instance that you find the tenants possessions remain in the property, then it may be wise to take a cautious approach and apply for a possession order from the Court.
Are there any rent arrears?
Unless you can see that the tenant has clearly moved out, do not go for possession of the property if you have been receiving rent and payments are actually up to date. If the tenant wants to leave the property empty that is their prerogative
If on the other hand there are arrears and you find the place empty and keys left behind, then it’s safe to proceed with getting the place ready for re letting.
It will also make it safer for you to repossess, if the tenant was to make a claim against any illegal eviction, any award he gets would be off-set against any rent arrears.
Again, it pays to be cautious as tenants are entitled to occupy the property whilst be in arrears, until such times they are evicted by a court order.
Final thought

If you have used an Agent to rent your property or otherwise, it’s always worth having details of your tenants next of kin as a point of contact in such a situation may prove to be very handy, in this situation. It’s also been known for dishonest tenants to make it look as if they have moved out to entice the landlord to gain possession  only to try and sue them later to be compensated for unlawful eviction. 

How Much Is Your Property Worth? Click Here To Find Out For FREE

If you are looking for an agent with experience that can help you find the right tenant for your property, then contact me 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 at Ashmore Residential, Suite 7, 25-27 Heath Street, London, NW3 6TR. There is plenty of parking and 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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Friday 21 July 2017

Hampstead Homeowners Move Once Every 18 Years


Now that some of the dust has settled from the result of the General Election, the local market has become somewhat subdued and I expect that the ferocious rise in house prices we have seen over the past 2-3 years will stabilise of the next 12 months. We have seen the share price of these large house builders drop significantly since June 8th,  though  it’s this supply and demand imbalance that brings me on to what I see unfolding as a long term trend in the Hampstead property market.
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Monday 17 July 2017

Are first time buyers really priced out of The Hampstead Property Market ?


We are constantly hearing stories in the press about the severe housing shortage and lack of new build properties that is fuelling house price inflation, making home ownership further and further out of reach for the younger generation. 
As a landlord and as someone who advises landlords, I'll be the first to admit that daring to ask the question wont win me any popularity contests. 
Having said that, after avidly listening to Property Hour on LBC at 9pm and reading various articles in property publications, the topic aroused my curiosity. 
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Friday 7 July 2017

Hampstead Property Market – Summer time Blues?

The Land Registry has just released their latest set of figures for the Hampstead Property market. It makes interesting reading, as average property values in Hampstead have stagnated since June of last year. This leaves average property values just 0.3 % higher than 12 months ago, meaning the annual rate of growth in the area fell to its lowest level since January 2012. When we compare Hampstead against the regional picture, London property values fell by 1.2 % between April and June, from 5% the previous quarter.  

Obviously this is a far cry from the price rises we were experiencing in Hampstead throughout 2014. At one point (August 2014 to be exact) property values were rising by 22.7% a year. All the same, even with the tempering of the Hampstead property values in 2015, property values are only marginally higher than a year ago, though once we account inflation of 2.9%, values have fallen in real terms. This is not good news for local homeowners who had been affected by the downturn after 2008, though they can take solace in the fact that prices today are 57% higher. 



However, the thing that concerns me is that the average number of properties changing hands (i.e. selling) has dropped substantially over the last couple of years in the area. For example in April 2014 (see above), 90 properties sold in Hampstead but in April 2015, that figure dropped to 41. The most significant event that had bucked the trend in 2016 was the announced Stamp Duty hikes on both primary residences and second homes which saw a substantial increase in supply in the first quarter to 115 properties sold from January to April. In practice, chains need a buyer at the bottom to allow everyone to move, this was heightened by investors keen to avoid the 3% stamp duty hike that was due to take effect from April 1st. Interestingly, a Bank of England Survey of lenders revealed that the majority of those who sold where first time sellers looking to trade up, as opposed to the common assumption that there was a flurry of landlords selling to other buy to let investors. The surge in demand from investors who were in competition with first time buyers was used to help them get their foot on the next rung of the housing ladder.

I have been in the Hampstead property market for quite a while now and the one thing I have noticed over the last few years is the seasonality of the local market. Since the changes in Stamp Duty, I was curious about the number and type of homes selling and how the trends have changed. Below are the results from April 2016 to April 2017. (Source: Home.co.uk - House Prices Report for Hampstead 2016-17)


There is simply not as much choice of properties to buy in Hampstead and with its population set to increase by 10% over the next decade this will generally strengthen house price growth for the long term.
How Much Is Your Property Worth? Click Here To Find Out For FREE

If you are looking for an agent with experience that can help you find the right tenant for your property, then contact me 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 at Ashmore Residential, Suite 7, 25-27 Heath Street, London, NW3 6TR. There is plenty of parking and 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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Wednesday 28 June 2017

Should I rent my Hampstead property Furnished or Unfurnished?


Furnished or unfurnished? This is a common dilemma that landlords the length and breadth of the country face when letting their property. With the Chancellor's raid on landlords balance sheets, the wear and tear allowance has also been scrapped and exemptions given only on replacement furnishings and appliances.


In essence, it all depends on which sector of the market you are operating in. For example, if you are letting to students or for holiday/short term lets, you have no choice. As for all other types of tenants your property may attract, the old adage of "less is more" seems to make practical and economical sense, in almost all cases. Below are my 5 reasons not to furnish.

1.Practicalities

If you received a call from your tenant late one evening in the middle of winter to say that the boiler had stopped working and need you to get it checked out, that's not in any way unreasonable. If that call was to say the dining table leg had come off, that would be somewhat irritating.
2.Disputes and Damages
The more contents you include in your property, the greater the scope for disputes over damages and even theft. Disputes at the end of a tenancy are not uncommon and it only takes a poor inventory report to weaken your position if you are looking to claim against any damage that may have been caused. In any case, you will have to meet the costs of replacement in the interim.The other issue is with beds/mattresses.Where the property is offered on a furnished basis, the tenant may request a replacement mattress, for example, on the grounds of personal hygiene or because they have back problems and wish to bring their own bed mattress, therefore you now have to arrange for disposal of the existing one.   
3. Council tax Exemptions

 Some local authorities, not all, give landlords a council tax "holiday" during void periods- please note, its on the condition that the premises is vacant and unfurnished. 
4. Tenants who have their own furniture

 Should you find a tenant who has his/her own furniture, its also likely to be half way decent, therefore expect a request to remove the items you have in situ. Depending on the age, quality and condition, you will either have to pay to store it somewhere safe if you don't have a facility, donate it to a charity or if its seen better days, have the local authority collect it for a nominal fee. In most cases, tenants who supply their own furnishings tend to be well established and will look to put some roots down wherever they move to. The likelihood  is that they will move less often, for practical and economical reasons which has a positive knock-on effect for your interests in the property.

5. Cheap Furniture - A false economy

Budget range furniture is quite common in rented accommodation, though the truth of the matter is that it doesn't last the course and you will end up having to replace some, if not all of it, over time. In a more challenging market, you may find yourself having to accommodate more requests in order to facilitate a rental. Any slight increase that you may charge in rent will be wiped out by the extra expense and hassle you have to go to.



How Much Is Your Property Worth? Click Here To Find Out For FREE

If you are looking for an agent with experience that can help you find the right tenant for your property, then contact me 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 at Ashmore Residential, Suite 7, 25-27 Heath Street, London, NW3 6TR. There is plenty of parking and 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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