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%
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.
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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