Hampstead House owners desert the housing market with an 8 year low

Even though the housing market is in an upbeat state in many parts of the UK, getting on the property ladder is still challenging for many and regarded as unattainable by some.  However, that goal has become even worse recently in Hampstead as the number of houses available to buy is at an 8 year all time low.

Back in Summer 2008, there were over 1,600 properties for sale in Hampstead and since then this has steadily declined year on year, so now there are only 744 for sale in the suburb. This continuing diminishing supply of housing has been happening over those years for a while and there simply aren’t enough properties in Hampstead to match demand.

According to a recent report by the National Association of Estate Agents, that said, “There are now 11 house hunters fighting after every available house which isn’t sustainable.” What that means is Hampstead youngsters, who are looking to buy their first home, are finding themselves being squeezed out by the competition. However, in the meantime, nobody wants to live with parents until they are in their 30’s, so that in turn creates demand for more rental properties, which means landlords have a greater demand for more rental properties so are buying more, resulting in even less smaller properties for the youngsters to buy, it’s a vicious circle.  

Talking to fellow agents, mortgage arrangers, surveyors and solicitors in the suburb, all of whom have extensive dealings in the Hampstead property market like myself, most of us agree the movement in the Hampstead market is taking place in the middle to upper end. One has to go higher up the ladder to see its second and third steppers pushing through the properties that are being bought and sold.

That has meant as people tend to move less in the middle to upper market, the number of the properties actually selling has drastically reduced over the last couple of years.

When we look at the individual areas of the suburb, it paints an interesting picture.NW3  – Hampstead, Belsize Park, Frognal, Childs Hill (east/south/west), South Hampstead (south), Swiss Cottage (south), Primrose Hill (south), Chalk Farm (south) and Gospel Oak (east)  56 properties sold in May 2015 (with a average value of £ 1,328,098), whilst over the Summer months of 2014, the number of properties selling in this postcode reached into the mid 80’s.

So what does this all mean for homeowners and landlords alike in Hampstead?  Demand for Hampstead property is good, especially at the lower end of the market. However, with fewer properties coming up for sale, it means property prices are proving reasonably stable too.

You see I believe a more stable, consistent Hampstead property market, with less people seeing property as an easy way to make a quick buck (as many did in the early 2000’s when prices were rising at nearly 20% a year so people were buying and selling every other minute). Instead a property market that has a steady growth of property values in Hampstead, year on year, without the massive peaks and troughs we saw in the late 1980’s and mid/late 2000’s might just be the thing that the Hampstead property market needs in the long term.

For more insights, comments and facts on the Hampstead Property market please visit the Hampstead Property Blog www.NW3propertyblog.com  where you will find many similar articles to this.

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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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NW3 Eye Candy - Telegraph Hill- Platts Lane NW3

Now that the clocks have gone back and the days are gradually getting shorter, we slowly but surely get into hibernation mode over the coming months. This stunning 5  bedroom detached house just a short walk from The Heath has pretty much all the creature comforts on offer. The house is ideal for the growing family offering lots of living and entertaining space with an integral garage and parking for a further 2 cars. 

This house has real presence with a striking walnut veneer semi-circular staircase and very generous living and entertaining space on the ground floor accommodating for the large parties of the forthcoming season. The kitchen is superb with quartz worktops complemented by well planned lighting. On the upper level , there are 6 bathrooms and an impressive cinema room offering sumptuous seating. The main bedroom offers a dressing area, en-suite bathroom and access to its own terrace overlooking the garden. 

Technology is at the heart of this contemporary style home with Lutron home works lighting system, Multi room audio system, underfloor heating, CCTV and a sound insulated private screening room- very swish. 

Its all yours for a cool £7,950,000 and offered for sale by Aston Chase, click on the link below for a feat of your senses! 

http://www.zoopla.co.uk/for-sale/details/38349017

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 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.

Follow The Buy-To-Let Property Investment Market in Hampstead

Hampstead Property Market LinkedIn Page

Ashmore Residential Hampstead Facebook Page

Ashmore Residential Hampstead Twitter Page

Hampstead Investment Property Specialist Ashmore Residential Website

3/4 bedroom flat - Buy to let Investment Finchley Road NW3

We mainly talk about the smaller flats, ranging from studio to 2 bedrooms for buy to let investment, though as long as they are bought at the right level, the larger 3/4 bedroom properties can also make good returns. 

Refurbished studio flat - Buy to let Investment - Belsize Grove NW3

This is a smart self contained studio flat that has just been refurbished and ready to go. Located on Belsize Grove just a short stroll from the Tube and local shops on Haverstcok Hill making this a cracking buy to let investment flat that is in very high demand.

1 bedroom buy to let investment - Redington Road NW3

Thought this one bedroom flat on Redington Road would be worthwhile looking at. This is a really decent address in Hampstead and by dint of its location will generally attract a good quality tenant. Located  on the first floor and is of pretty generous proportions with some 520 sq ft of space on offer and in very good all round condition too.

Could your Hampstead property save you from Pension oblivion?

If you were born in the early 1970’s or late 1960’s, if you haven’t started to think about it yet, retirement is closer than you think. In fact the number of years you have left to work is less than the number of years you have worked. The basic state pension is worth £115.95 a week for a single person in 2015/16 (or £6,029 a year) and £231.90 a week for a couple (£12,118 a year) as long as your partner has paid their stamp (although there are certain get out of jail cards if they haven’t). 

As a household, could you live on just over £12k a year?

However, could the property you are living in save you from poverty when you reach retirement? You see, a regular income is vital in retirement, and the bricks and mortar you own in Hampstead could provide a way for you to finance life when you retire.

If you are in your 30’s, instead of saddling yourself with bigger and bigger mortgages, going from your first time buyer flat, to a terraced, to the semi and then the large detached house, you could instead keep your terraced or small semi, turning it into buy a buy to let property, let the rent pay the mortgage and then rely on capital growth to provide you with a lump sum when you sell the property and retire. One of the biggest plus points of buy to let is what is known as leverage. Let me explain ... say you have a deposit of 25% and the value of the property rises by 3% a year, your gains in fact multiply to 12%.  However, if property prices drop, 'leverage' can be catastrophic, as losses will also be multiplied. Property values have dropped a number of times in the last 50 years, but they always seem to bounce back ... property must be seen as a long term investment.

Let me explain how leverage could work for you. If you had bought a Hampstead house in the Spring of 1983 for £100,000, using a 75% mortgage and 25% deposit, (meaning your deposit would be £25,000). Today, that Hampstead property would have risen in value to £993,145, a rise of 893.1%. However, when you look at the growth on just your deposit, the rise is even better ... instead of 893.1%, we see a rise of 3873% (remembering that the mortgage would have been paid off).

However, buy to let is not all about capital growth and in retirement, income is more important than capital growth, as rent is the key to a steady income.

So surely the best strategy is to buy those Hampstead properties with the high rents (when compared to the value of the property). These are called high yield properties in the buy to let world because the monthly return is so much greater. So, surely they are the best in Hampstead? Possibly, but the properties that offer these higher yields (in the order of 4% to 6% per year) tend to be in such areas as Finchley Road in Hampstead. Historically they haven’t offered such good capital growth when compared to the suburb average, have a higher tendency for void periods and such properties tend to attract tenants that have a greater propensity to be high maintenance.

Therefore, if a high maintenance rental portfolio wasn’t for you, another strategy could be buy a property with relatively smaller rental returns of 2% to 3% per year (i.e. lower yields), but in a more up market area such as Primrose Hill. Properties such as these tend to suffer from less void periods (i.e. when there is no tenant in the property paying you rent) and they historically have had better long term capital growth when compared to the suburb average.

Every landlord is different and every property is different. All I suggest to you is do your homework.

As regular readers will know, I am happy to share my knowledge and experience of the Hampstead property market; high yields, high capital growth, what to buy, what not to buy and where to buy can always be found on the Hampstead Property Blog www.NW3propertyblog.com

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 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.

Follow The Buy-To-Let Property Investment Market in Hampstead

Hampstead Property Market LinkedIn Page

Ashmore Residential Hampstead Facebook Page

Ashmore Residential Hampstead Twitter Page

Hampstead Investment Property Specialist Ashmore Residential Website

NW3 Eye Candy - Property of the week- South Hill Park NW3

It's back to the South Hill Park conservation area this week and my pick is this superb 3 bedroom ground floor flat with garden. This pocket of Hampstead has some of the most impressive conversions in the area and its location offers a great mix of tranquility (with no through traffic), easy access to The Heath and all the local shops and transport on South End Road. For this reason, prices in this part of Hampstead have been rising rapidly over the past 5-7 years and are fast catching up with those west of The Heath.

On to the flat, well its been renovated to a high standard throughout and many of the period features have been restored retaining much of the charm and character of the original house. All the usual benefits of light and space with the generously proportioned rooms and the layout of the accommodation works a treat with access to the garden afforded from both the kitchen/dining room as well as the main bedroom. The owners have been very thoughtful in combining the period features with the contemporary design cues making one appreciate what this place once was and what it is today. 

In the market for a 3 bedroom flat with a difference ?  Get your hands on this one whilst the leaves are falling as there's a race for them in spring and summer months. On the market with Amberden Estates for £1,950,000 click on the link for the full story.

http://www.zoopla.co.uk/for-sale/details/38390114

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 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.

Follow The Buy-To-Let Property Investment Market in Hampstead

Hampstead Property Market LinkedIn Page

Ashmore Residential Hampstead Facebook Page

Ashmore Residential Hampstead Twitter Page

Hampstead Investment Property Specialist Ashmore Residential Website