As we come to the end of another week and month, this superb contemporary style house located on Redington Road is my pick.
This blog follows the buy-to-let market in Hampstead. You'll find tips, guidance, and analysis that relates specifically to Hampstead and you'll also find properties from all the estate agents in the town on here that may make decent investments. I own and operate Ashmore Residential, a Hampstead Estate Agents, and if you're thinking of buying a property to let in Hampstead, I'm happy to offer a second opinion.
Friday, 31 July 2015
Are ‘would be’ Hampstead homeowners warming to the idea of renting?
I was reading a report the other day produced by the
Halifax, about the UK property market and why more and more of the younger
generation seem to be renting rather than buying. I find it fascinating that
over the last ten years, the British obsession of buying a house almost as soon
as you left school, and the fact that if you rented you were seen as a second
class citizen, has turned on its head to a point where the hopes and dreams to
own a desirable home will be replaced by the ambition simply to live in one.
In the latter half of the 20th Century, you left school, got
a job, bought a small house and kept buying and selling property, constantly
upgrading until eventually they carried you out in a box. However, the perceived
shame and stigma of renting is no longer the case, as it seems that the British
are now beginning to accept a lifetime of renting. This is a very important
consideration for both Hampstead homeowners and Hampstead landlords as it will transform
the way the Hampstead property ladder looks in the future and I might ask whether
or not it will exist at all for some people? The make up of households is one
important factor, especially in the Hampstead property market. The normal
stereotypical married couple, two kids and a dog of the 1970’s and 80’s has
changed. More and more we have the need for larger houses where two families
come together after divorces (+ kids) and need a property to house everyone
through to an increase in the number of one person households.
Looking at the data for Hampstead, of the 4,124 private
rental properties in the Camden Council area, 39.33% of those rented properties
are one person households (1,622 properties). However, when we compare the
number of one person Hampstead households who have bought their own property
with a mortgage (ie therefore they are still in work), of the 4,528 owner
occupied households in the area, only 601 of those properties are a one person
household (ie 13.27%). Compared to a decade ago, this explosion in demand for
decent high quality rental properties that one person households require has
not been met with an increase in supply of such properties. More and more I believe Hampstead landlords
need to consider this change in the make up of Hampstead households, as I
believe this could be an opportunity. As an aside, another interesting stat
that raised an eyebrow was that 2.78% of those 4,124 rental properties (115
properties) are lone parents households as well. Again, another possible
opportunity that Hampstead landlords might want to consider in their future
investment plans.
It is true that the
Governments introduction in 2013 of the Help to Buy scheme, where first time
buyers only needed a 5% deposit, changed the perception of peoples’ ability to
buy without having to save ten’s of thousands of pounds for a deposit. However,
it might surprise you, 95% mortgages were re-introduced within six months of
the Credit Crunch in late 2009, so again it comes down to people’s own
perception. Many youngsters think they won’t get a mortgage, so don’t even
bother trying.
Coming back to the
deposit, it’s still a fact that once you start renting it becomes that much
harder to save for a deposit, regardless of the size. Interestingly, 7
out of 8 renters polled by the Halifax (86% to be exact) refuse to sacrifice
the quality of accommodation they currently live in to reduce the amount of
rent they pay in order to save for a deposit.
This is the crux and the real
reason why people aren’t buying but renting... and why demand for renting will
continue to grow in the future (ie good news for landlords). Hampstead
tenants can upgrade the quality and size of the property they live in for a
minimal rent increase. The average rent of a two bed property in Hampstead is £2,755pm,
a three bed is £1,761pm more at £4,516pm, whilst the average four bed rent is
£8,853pm. If you had to make that jump when buying, the monthly mortgage
payments would be stratospherically more than that! Without any social pressure and better quality
rental properties compared to a decade ago, we will
become a nation of renters within the next generation, as the UK is becoming
more like Europe, where renting is ‘the norm’. Who is going to supply all these
properties to rent? Landlords! Whether you are an existing landlord looking to
grow your portfolio or looking to become a ‘first time landlord’, my thoughts
are take advice from as many people as possible. However, as the majority of
landlords buy their buy to let properties in the same town they live, you will
need specific advice about Hampstead itself. One place for such advice and
opinion is 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.
Don't forget to visit the links below to view back dated deals and Hampstead Property News.
Thursday, 30 July 2015
Studio flat Studholme Court - Finchley Road NW3
Good morning,
today's pick is this self contained studio flat on the first floor of this ex-local authority block on Finchley Road. This is a good size for a studio and has a separate kitchen and a balcony. Its been on the market for a while now and i would suggest that it needs to come down in price, primarily being on a busy thoroughfare which is not everyones cup of tea and that there is a limit on how much one will pay for a flat of this type. These smaller units below the £350k normally fly out. The flat is otherwise pretty good in terms of what it offers.
Wednesday, 29 July 2015
Refurbished Studio flat with 4% net yield - Belsize Grove NW3
Last week, i put out a smart studio located on Belsize Grove, here is another on the same road and it's even smarter than last weeks offering that's now sold. Located on the ground floor this flat has been refurbished throughout and is like a show home. Belsize Grove is just off Haverstock Hill and is convenient for all the amenities of Belsize Park.
Tuesday, 28 July 2015
Giling Court, Belsize Grove NW3 - Studio flat with a 4% yield
This studio flat has been sticking around for a good while which is unusual for Giling Court. As this flat is one of the smaller ones in the building coming in at just under 270sq feet, the £320k price seems top heavy, given its size, I would suggest that it needs to be competitive on price. In essence,the flat is in pretty good shape, crucially kitchen and bathroom are decent though a coat of paint and new carpet for the living room/sleeping area is the sum total of what is needed.
Monday, 27 July 2015
4 Bedroom ex-local authority maisonette - Mansfield Road NW3 with 4.5% net yield
Good morning,
I was trawling through the offerings of the local market and spotted this 4 bedroom ex local authority maisonette and thought to put it out there. Looking around inside, this place is in need of refurbishment throughout. I would suggest that you would need to spend around 30k to bring this up to scratch.
I was trawling through the offerings of the local market and spotted this 4 bedroom ex local authority maisonette and thought to put it out there. Looking around inside, this place is in need of refurbishment throughout. I would suggest that you would need to spend around 30k to bring this up to scratch.
Friday, 24 July 2015
Hampstead Property Market – Bricks and Mortar!
The Land Registry have just released their latest set of
figures for the Hampstead Property market. It makes interesting reading, as
average property values in Hampstead dropped by 1.2 % in May. This leaves
average property values 6.3% 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 rose by 0.7%,
leaving them 9.1% higher than a year ago.
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 still
higher. This is good news for local homeowners who had been affected by the
downturn after 2007.
However, the thing that concerns me is that the average number
of properties changing hands (i.e selling) has dropped substantially over the
last 12 months in the area. In April 2014, 90 properties sold in Hampstead but
in April 2015, that figure dropped to 41. 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 has been the subtle change in the traditional seasonality of the Hampstead
property market. It has been particularly noticeable this year in that the
normal post Easter flood of properties coming onto the market was not seen.
This has made an imbalance between supply and demand, with less houses coming
onto the market there is simply not as much choice of properties to buy in Hampstead
and with the population of Hampstead ever increasing, this will generally strengthen
house price growth for the foreseeable future.
So what does all this mean for Hampstead landlords or those
considering dipping their toe into the buy to let market for the first time? For many people, buy to let looks a good investment,
providing landlords with a decent income at a time of low interest rates and
stock market unpredictability.
However, if you are thinking
of investing in bricks and mortar in Hampstead, it is important to do things correctly.
As an investment to provide you with income, for those with enough savings to
raise a big deposit, buy to let looks particularly good, especially compared to
low savings rates and stock market yo-yo’s. I must also remind readers,
landlords have two opportunities to make money from property, not only is there
the rent (income), but with the property market bouncing back over the last few
years, property value increases has spurred on more investors to buy property
in the hope of its value continuing to rise.
Savvy landlords with decent deposits can fix their mortgages
at just over 3% for five years, making many deals stack up. Nevertheless, low
rates cannot stay low forever, because one day they must rise and you need to
know your property can stand that test. I saw some Hampstead landlords
struggling in the mid-noughties,when interest rates rose from 3.5% in July
2003 to 5.75% in July 2007. That might not sound a lot, but that was the
difference of making a £100 a month profit in 2003 to having to make up a
shortfall in the mortgage payments of £100 per month in 2007.
Its true many landlords were thrown a life raft when the
base rate dropped to 0.5% in March 2009. Whilst interest rates have remained
there since, mark my words, they will rise again in the future. However, even
with the potential for costs to rise, demand for decent rental properties
remains high as there are ever more tenants in the market, driving up demand
and thus rents. The British love of bricks and mortar plus improving mortgage
deals also add up to fuel the buoyant Hampstead property market.
If you are planning on investing in the Hampstead property
market, or just want to know more about the things to consider for a successful buy to let
investment, by all means contact the office on 020 7435 0420 or if you are shy, drop me a line chris@ashmoreresidential.com Another source of information offering full weekly analysis is 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.
Don't forget to visit the links below to view back dated deals and Hampstead Property News.
Subscribe to:
Posts (Atom)