West Hampstead Life

Category: Property

Bringing West Hampstead insight to national property statistics

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Every week newspaper headlines vary between ‘house prices rise’ or ‘house prices fall’ – but which headline is accurate?

We thought we’d delve behind the headlines for this month’s West Hampstead Life column; we’ll be sharing some interesting stats and sprinkling them with some local insight to bring them to life.

First-time buyers
Nationally, the number of first-time buyers is down compared to 20 years ago, and according to the English Housing Survey, the average age of first-time buyers now stands at 33 years old. However, although there is no question that the average age of first-time buyers has steadily increased over the years with a direct correlation to property price inflation, the reality is more nuanced. That’s because the age at which someone buys for the first time is dependent on their personal circumstances.

For example, we receive many enquiries from first-time buyers who are getting considerable support from their parents. In these instances, parents either have cash or equity they can release from the family home, therefore bridging the affordability gap for their children who only need to take out a mortgage for an amount that’s affordable to them.

First-time buyers in this scenario typically live at home and are in the early stages of their first job after completing a degree. This gives an average first-time buyer age of around mid- to late-20s, a stark contrast to the majority of first-time buyers whose parents can’t raise such a large amount of ‘spare’ cash – and therefore spend years saving for a deposit whilst renting. For this self-sufficient majority, the average age is early- to mid-30s.

Private rented sector
Nationally, 4.5 million households rent in the private sector, and that figure is likely to grow (with many developers now choosing to build specifically to rent rather than sell). On average the weekly rent in London is £309, but in West Hampstead it’s around the £430 mark. Despite it costing more than average to live in West Hampstead, we’ve found that local tenants pay less in rent as a percentage of their income, compared to the wider London market.

In general, the number of families living in the private rented sector has grown significantly over the last decade. Although we haven’t seen this too much in West Hampstead, there has been an increase in young families with children under four renting in the area.

Neighbourhood
According to the English Housing Survey, 88% of Londoners are ‘satisfied’ with their neighbourhood. We’re sure most West Hampstead Life readers are more than ‘satisfied’ with their neighbourhood and reckon we’d score higher than average!

What’s interesting is that the London data shows a slight discrepancy in levels of happiness between those that rent and those that own their own home – but in our experience, this isn’t the case for West Hampstead. We’ve found that renters rarely leave the area and do so only if they want a complete change in lifestyle.

Local update
Stats aside, it’s been a slow start to the year. However, the change in the weather has helped both the sales and lettings markets; throughout March we’ve been contacted by vendors seeking pricing advice as well as tenants looking to move and settle before summer begins.

On the sales side, there’s a healthy demand from buyers looking for a first or a better home in and around West Hampstead. What’s noticeable though is how discerning buyers are being, and they’re certainly less prepared to compromise than they’ve been in the past.

On the lettings side, we’ve noticed a lot of applicants moving from Hampstead and Belsize Park to West Hampstead. These tenants tend to be professional couples looking for extra value for money who now perceive West Hampstead at nearly the same level as Hampstead and Belsize Park. Naturally, we agree, and there’s no doubt that the significant improvements to transport infrastructure and amenities along West End Lane have helped shine a light on the area.

To get accurate market advice for your property, please do get in touch to arrange your personal market appraisal or pop in to see us at our West End Lane Office, on the edge of West Hampstead Square.

Jonny Miller and Matthew Spencer

T: 020 7481 2907
E:
W: www.johnsand.co
JOHNS&CO, Unit 7, Hardy Building, West End Lane, London, NW6 2BR

March 19, 2018
West Hampstead property price rises set to outpace London average

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It can be easy to generalise when talking about the London property market. However, London has often been described as a collection of villages, each with its own unique style, atmosphere and charms. For this reason, when discussing the London property market, it’s important not to look at the capital as the sum of its parts but to understand that each borough is its own entity.

Such distinct differences result in significant variations in the growth rate of property prices between boroughs and the dynamic nature of this vibrant capital means that growth can be sustained but it can equally take place in short focused bursts. For instance, between 2009 and 2015, property values in Kensington and Chelsea increased by 65%, whilst growth in boroughs on London’s periphery was up to three times lower. Then from 2014 to 2017, growth in the exclusive Royal Borough all but stopped, whereas property in the outer London boroughs experienced a 46% increase in value.

A recent study by CBRE has shown that in 2017, Camden experienced by far the highest increase in property values of all London boroughs with a 13.4% growth in prices. The research argues that this trend is set to continue over the next five years, likely due to new developments in the borough and improvements to transport infrastructure and local amenities such as those occurring all along West End Lane.

With prices likely to continue to grow in the borough, the importance of getting an accurate market appraisal was highlighted recently when we ran a ‘guess the house price’ competition. Recent visitors to our West Hampstead estate agency had the opportunity to guess the price of a property in NW6 as part of a prize draw. Entrants had internal and external images to look at as well as a short description of the property to help with their guesses. Over the course of the day it became apparent that competition entries varied wildly, with people significantly under or overvaluing the property.

This emphasises the importance of using a knowledgeable agent to advise and guide you on the best price to market your property. Accurately priced properties are able to sell because they are appealing to both seller and buyer and it takes a highly experienced agent to understand where that balance sits for each property.

To get accurate market advice for your property, please do get in touch to arrange a free appraisal or pop in to see us at our West End Lane Office, on the edge of West Hampstead Square.

T: 020 7481 2907
E:
W: www.johnsand.co
JOHNS&CO, Unit 7, Hardy Building, West End Lane, London, NW6 2BR

P.S. I’m thrilled to announce that next month’s Property News will be co-written by my new colleague Matthew Spencer, who has recently joined us as Lettings Manager. If you’d like to get in touch with him before then please email or call 020 7481 2907.

February 20, 2018
Positive sentiment in West Hampstead property market for 2018

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As we move into 2018, there are signs that the property market in West Hampstead is improving. Despite what others may say, there is evidence of a market out there for those looking to sell their home. With changes to stamp duty in the autumn statement and the hesitation caused by Brexit beginning to settle, there is an increased optimism surrounding the property market as we begin the new year.

The high level of activity we’ve been experiencing in north-west London is a reflection of the upturn in confidence buyers have in the market. A recent poll conducted by The Times discovered that 41% of the British public believe that house prices will rise in 2018, with only 14% believing that they might fall. The Guardian has also reported that industry professionals are predicting a rise in house prices of up to 3% this year.

Our ability to tap into this positive market sentiment and rise above the obstacles other agents may be struggling with is proven by our recent successful sale of a one-bedroom apartment that achieved a record price for its address. This property had been on the market for a while with the owner coming under pressure to reduce the price. We also agreed the sale of another apartment in the centre of West Hampstead on the December 22nd, our last working day of 2017!

The success we’ve had in selling such properties comes from having the positivity and confidence brought about by our phenomenal success in handling the sale, rental and management of apartments at West Hampstead Square. With offices across London and in Asia we have a database of thousands of buyers, both in the UK and overseas. This means we aren’t reliant purely on the confidence of local buyers, and as such are able to avoid being mired in the more static local market. Our achievements are even more impressive considering we’ve accomplished them before officially launching our West Hampstead office, with marketing not yet in full swing.

If you are thinking of selling or renting your property in 2018, or have been on the market for a while and are frustrated by lack of progress or constant negativity, then please get in touch with us for a free initial consultation.

We look forward to hearing from you.

T: 020 7481 2907
E:
W: www.johnsand.co
JOHNS&CO, Unit 7, Hardy Building, West End Lane, London, NW6 2BR

P.S. We also want to say a big thank you to everyone who donated to our Christmas Foodbank collection. Across our offices we collected more than a thousand items of food and toiletries, and we hope to improve on that in 2018.

January 11, 2018
A new perspective on West Hampstead’s property market

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The new year will see the official opening of Johns&Co’s estate agency office at West Hampstead Square, bringing with it a fresh, new outlook on the property market in West Hampstead and surrounding areas.

If the name sounds familiar to you, it might be because we’re the preferred partner of West Hampstead Square developer Ballymore and have already been based on site, working alongside Ballymore arranging the sales and subsequent rental and management of the five blocks of 144 apartments.

The West Hampstead Square scheme has now been sold, let and managed, and whilst we are marketing thousands of new homes from Nine Elms to Canary Wharf, we still have a significant database of buyers and investors looking for property in this part of London. Having so successfully achieved our original objective at West Hampstead Square, we decided to extend our expertise to homeowners in the area, so they too can take advantage of the appetite for homes we have been experiencing since we first came to West End Lane.

As a seasoned Sales Manager from the local area I’ve joined Johns&Co to help meld their international expertise to the needs of homeowners and landlords in the local market. I began my career in this area aged 19 as an office junior, took charge of my own branch for the first time at 21 and have honed my particular brand of highly personal estate agency service over subsequent years. I have successfully run businesses for some of London’s largest companies, including Kinleigh Folkard & Hayward and Hamptons International. During 35 years in the property industry I have become highly experienced in the fields of property development and new homes which led me to become a sales manager for a major regional developer for a number of years, before returning to my first love of estate agency.

I missed the relationships with people that I enjoyed so much in estate agency. I typically assist a client for months, from providing initial advice on accurate pricing and marketing, to then helping them achieve their life goals by either selling or renting their property. I get to know my clients very well and the quality of this relationship is what makes all the difference to a successful outcome. It’s not uncommon for my clients to become friends – I have friends who were first of all clients 20 years ago. I’ve even helped some of their children with the difficult task of getting onto the property ladder, renting at first and then buying their first home, and always being on hand to provide guidance and assistance every step of the way. There is one family friend who I recently helped to buy two properties, one for their daughter and family and the other for their sons.

I’m often asked to share my in-depth knowledge of all things property and recently ran a free property workshop at the request of local community centre JW3 on Finchley Road, where I provided guidance and answered the questions of local people who were looking for expert advice on how best to sell and buy in the current climate.

While preparations are well underway for the official opening at the start of January, I’m already busy talking to local people about their proposed sale or purchase in the new year. So if you’re thinking of moving or would like to benefit from my local experience and the international reach of the team at JOHNS&CO, then call and arrange to see me on 020 7481 2907 or email me at .

Similarly, if you are looking to rent your property to prospective tenants, our Lettings Manager Jordan Charles-Jones is also on hand to assist you with all aspects of Lettings and Management from the heart of West Hampstead. Jordan can be reached on 020 7481 2907 or on email to .

We look forward to meeting you.

December 12, 2017
How rich must you be to afford “affordable” housing?

After many people – including West Hampstead Life – made a fuss about the lack of affordable housing provision in the Liddell Road scheme, Camden promised that the 156 West End Lane scheme would meet the 50% affordable housing quota by floorspace.

The development, which was given the go-ahead by the planning committee on Thursday, ended up with 79 affordable flats, or 49.8% of floorspace. Except, you could argue it’s not even that.

Take a deep breath as we dive into the murky waters of what is and isn’t affordable housing – and quite how much money you need to get some for yourself.

First, the good news.

Of those 79 affordable flats, 44 are “affordable rented” (and equate to 30% of total floorspace). According to the planning officer’s report, the rents have been set at Camden’s target social rented rate. In 2014/15, the average cost of Camden council’s housing rent was £475 per month. To give you an idea of how that relates to the local private rental market, one-bed flats in the area on Rightmove start from about £1,250 per month.

You can therefore argue that these rented properties are indeed affordable.

Now the bad news.

The remaining 35 units (20% of total floorspace) are ‘shared ownership’ properties. This still nominally falls under so-called “intermediate” affordable housing. Intermediate includes both affordable rented and shared-ownership but excludes social housing (aka “council houses”), which is a separate category. There is no social housing planned for 156 West End Lane.

How affordable is shared ownership? We looked at the nearby Central development on Iverson Road where a one-bed shared-ownership flat is being marketed.

If you’re not familiar with the concept of shared ownership – as at least a couple of councillors on Thursday night were clearly not – then here’s the primer:

Shared ownership means you take a stake (often 25%) in the property and any mortgage you need is based on that value. You then pay rent on the remaining share (say, 75%) to the housing association that manages the property. There are also service charges. Over time, most people try to increase their stake. The scheme is supposed to be a way to get ownership with much lower financial requirements. Typically a deposit of only 5% is required.

Let’s go back to this Iverson Road property to see what it would cost.

The full market price of the flat is £550,000. A 25% share is £137,500. There’s a required 5% deposit of £6,875.

An “affordable” shared ownership flat on Iverson Road.

Critically, the details specify a minimum household income of £65,000. Shared ownership schemes in London are available to anyone with a household income below £90,000. For this one, you must also be a Camden resident and almost certainly a first-time buyer (the rules here are not black & white).

The median gross income in Camden is £39,610 (higher than the London average of £33,203) [Source].

Therefore, a Camden couple who both earned the average income would have a combined gross income of £79,220, and would be eligible to buy this property. Note that the average London-wide income would only just make them eligible.

They have got their deposit together and need to borrow £130,625. Shared ownership mortgages are a specific product. We have used the Leeds Building Society shared ownership mortgages to calculate the costs.

At current rates, a 3-yr fixed over a 25-year period, reverting to the standard-variable rate after 3 years and with no fees, works out at an overall rate of 5.3%. According to the Moneysavingexpert site, this leads to an average monthly payment of £787.

But remember, that’s just on the 25% you own. Our average Camden couple have then got to pay rent on the remaining 75% and Origin tells us that this is £688/month, plus a £150 monthly service charge.

Total monthly payment: £1,625.

That’s a high monthly payment for a quarter of a flat. There are standard 25-year mortgages available at the moment with representative APRs of 1.5% (they require 20% deposits). Take one of those and you could borrow £400,000 and end up with the same monthly payment of ~£1,600. The cheapest 1-bed flat (not studio) in the area is on for £279,950, but if you wanted that nice Iverson Road flat at market value you’d still need to find a £150,000 deposit on top of your £400k mortgage. The system works therefore at one level – it makes property affordable for people who otherwise couldn’t possibly afford it.

Nevertheless, to get that “affordable” flat in Iverson Road under the shared-ownership scheme, you still need to have a household income equal to two median Camden incomes, and pay out £1,625 a month. For 25% of it. And if you’re wondering, a joint income of £65,000 (assuming you both earned £32,500 each and had no dependents) would place your household in the top 11% of household incomes in the country according to the IFS. Our average Camden couple would be in the top 7%.

The red bar on the right shows a gross household income of £65,000 (net £50,000) relative to national household incomes (based on two adults each earning £32,500).

Is there a solution?
Camden seems to already recognise that affordable renting is far more affordable than shared ownership. According to the 156 report, in April 2016, the council’s cabinet stated that it would “seek to secure affordable intermediate housing… by encouraging all developers and housing associations to provide intermediate rent rather than shared ownership units as the intermediate housing element of their affordable housing contribution to developments’ [our emphasis].

This development was a test of this new strategy but clearly it’s not working.

Indeed, the report for 156 West End Lane suggests that our calculations above could wildly underestimate what a shared ownership flat might cost: “[The] increase in property values has meant that it is no longer possible to deliver shared ownership at a price that is affordable to the council’s target income groups earning £30,000 to £40,000 per year.”

Back to 156 West End Lane. On the basis of what is called “affordable housing”, yes, Camden has delivered 50%. In terms of what a reasonable person might consider to be affordable – perhaps not.

We welcome comments from council officers, or housing associations to correct any assumptions we’ve made here.

February 5, 2017
Property News: Impact of abolishing tenants’ fees

Tenants will be delighted at the announcement last week that administrative fees to tenants are to be banned, effective immediately. Whether costs to landlord might increase as a result is yet to be seen. Our view is that anything that can be done to improve transparency in our business has got to be positive. Flushing out the less scrupulous of our industry is what all good agents want to see happen. For tenants worried that this policy will result in an increase in rents, fear not, we can’t see this happening. We think that the industry is going to innovate around this to the benefit of tenants and landlords.

We are looking forward with anticipation to the completion of Heritage Lane (a.k.a. West Hampstead Square). We are reliably informed that the first two blocks will complete in late January and have been approached by landlords looking to let flats in these blocks. Having had a number of tours of the scheme, we love the specification, especially the unusual choice of brass fixtures and fittings as opposed to the normal chrome. A heritage finish for Heritage Lane, so to speak.

We are also agents on the commercial units at Heritage Lane and have seen huge demand from local businesses and healthcare practitioners for space. To compliment west Hampstead’s new M&S, due to open early next year, we are excited to add more to West End Lane’s growing commercial offerings. We recently secured Gails and soon look forward to announcing another ‘tasty’ addition to the high street….

David Matthews
Dutch & Dutch
174 West End Lane
West Hampstead
NW6 1SW
020 7794 0075

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December 2, 2016
Frustrated buyers face more delays at Ballymore

West Hampstead Square still isn’t finished. As you will have noticed.

Progress is being made as recent tweets show but it’s well overdue, and while it’s annoying for locals as the roads clog up with lorries delivering materials, for those who’ve bought apartments (some of whom are existing West Hampstead residents), the delays are going from frustrating to potentially financially damaging.

West Hampstead Square – when will it be finished?

The original completion date was June 2015. But, in June this year, with development already a year behind, Ballymore ditched the original construction company, O’Hare McGovern, and took over itself. After taking stock of the situation, it predicted completion by the end of this year. However, since then the company has ‘encountered further obstacles’, according to a letter sent to anxious buyers, which have now set the completion date back another three months. The latest is that no-one will move in until the start of next year and some flats won’t be ready until March. Anger is starting to bubble up.

“Ballymore has taken me and other buyers for granted,” says one local buyer who wants to remain anonymous. “The delay is frustrating, but what’s unacceptable is the manner with which they have drip-fed delays this year, rather than giving a realistic estimate from the start.”

Another buyer felt “it has been very poorly dealt with and has been very stressful” but now he just “wants to get it done to stop spending unnecessary money”.

The problem buyers face is that as soon as the actual completion date is announced, they have just 10 days to provide the balance of the money. Anyone tempted by a premature completion date announcement might find themselves having given notice or sold their existing property only to end up being told to hold on – again.

One buyer, for example, was initially told he could move in by June, but was then told that completion was expected in September, then October, then late October, then early November, then late November. By the end of October it was going to be completing in early December, but just a few days later that was pushed back to the end of January.

Aside from the practicalities of knowing when to move out, these flats were sold pre-Brexit and the uncertainty in the run-up to that vote and in the aftermath has dampened the property market somewhat. Private buyers are probably OK, according to Jon Hughes at local estate agent Benham & Reeves. Overall, the market has softened though underlying prices remain stable, but transaction volume is down.

Buy-to-let investors, who will surely make up a significant percentage of West Hampstead Square owners, will find things a little more difficult. Before construction started, the predicted rental price for a two-bed at West Hampstead Square was £650-£700 per week according to one local agent. In today’s market, he suggested sub-£600 seems more realistic. In addition, mortgage criteria have tightened (though rates are still low) and there is additional 3% stamp duty to pay on second homes.

Any off-plan purchase comes with an element of risk – economic circumstances and personal finances can change unexpectedly over the course of 12 to 18 months – but when a build is running more than 18 months late that risk is exacerbated. We know of some buyers who are have had issues with the sale of their previous properties, others who have sold to release the funds and now need to ask landlords to extend their leases. For anyone not in the super-rich or professional property investor category, these delays are both expensive and upsetting.

It is not just residents who have been affected. Businesses had been hoping to move in before the bouyant Christmas trading period. The latest news is that they will be able to start their shop fit-outs in December, but they won’t be able to open until January at the earliest. Apparently, Marks & Spencer may not open until February.

It seems that buyers have no legal recourse to compensation for the delays despite being strung along for months and possibly well over a year. In fact, in the small print of the contract, Ballymore can complete as late as 2018! All in all it is stressful situation for the buyers, several of whom have expressed their frustration to WHL. If you have experienced these problems or others, drop us a line. We asked Ballymore for a comment, but no-one has returned our calls.

November 25, 2016
Brexit tests the nerves of West Hampstead property market

It won’t be a surprise that it’s been a testing couple of weeks for London property. Tenants, buyers and indeed sellers have gone “a little quiet” to quote an understated fellow West Hampstead estate agent.

The post-referendum market feels very unnerved by the decision to leave the EU. Commercial property funds have been closing their doors, house builders’ shares have seen big falls and locally there are examples of buyers pulling out of purchases or re-negotiating the price.

This is of course all a fairly predictable outcome given the result of the referendum. After all the prime minster predicted house price drops of up to 20%, which was never going to instil confidence in a market already starting to feel a change in the wind. As it happens, we haven’t seen anything like 20% falls and most buyers are proceeding with fairly modest single figure percentage discounts at most.

The outcome of the referendum has been the catalyst, crystallising changes in the market that were already taking root. Stamp duty increases and the removal of mortgage interest relief were already putting downward pressure on prices, which of course was the intention of these policies in the first place. So no bad thing there, at least for the first-time buyers who are the intended beneficiaries.

However, Brexit uncertainty has potentially so many more wide-reaching consequences. How it will affect the property market in London is unknown. Only when the exit route is laid out and we have some idea what an independent UK will look like, will we be able to predict the impact on demand, supply, house prices, rents, housing policy and so on. Until then there will be a lot of questions on people’s minds: Is now the time to move? I was thinking of upgrading, is now the time to get a bigger mortgage? Is now the time to sell my investment flat? Are prices going to fall further?

What is certain is that it is uncertainty causing the problems. The route to EU exit is pretty unclear and there is no one at the helm. In time this will change, a new prime minister, and perhaps a new government, will take control, the fog will gradually clear and the market will find its feet.

The good news is that many young people still place huge importance on buying their first home. This week, we agreed the sale of a one-bedroom flat in NW6, at the asking price, to a first-time buyer who is very excited at the prospect of owning her first home–a desire too strong to be eroded by current economic and political uncertainty.

David Matthews
Dutch & Dutch
174 West End Lane
West Hampstead
NW6 1SW
020 7794 0075

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July 8, 2016
Five ways to boost your chances of renting or selling… without using an estate agent

There are a number of things you can do to try and maximise your income when renting or selling your property and a more ‘hands on’ approach to marketing and managing costs can reap financial rewards. So, despite an estate agent on every corner in West Hampstead, here’s some alternatives I’ve come across while in the process of renting my flat.

1. Emulate the copywriting professionals. Look on Zoopla and Rightmove to see how similar homes are described and see what ideas you can adapt to market your own. For example, a small home might be described as ‘cosy’ and a home with a loft might highlight the opportunity to convert it into an extra bedroom. Also accentuate the positives of living in West Hampstead, like the fantastic transport, shopping facilities, parks and culture – and a great local website – for people new to the area.

2. Take high quality photos. Make sure that the room is as bright as possible. Take photos during the daytime with open curtains and switch all the lights on. Take photos 1.5 meters from the ground and from the corner to capture as much of the room as possible, being particularly careful to include any key room features.

3. Use the major property portals. For £49, OpenRent.co.uk offers the opportunity to upload your photos and description of your rental flat to the major property portals including Rightmove (where you can find my flat), Zoopla and Prime Location. You also get an advertising board and phone number to put outside your West Hampstead property. The price also includes a tenancy agreement, deposit collection, and tenant referencing, which I think makes it excellent value.

4. Launch your own online advertising campaign. Google Adwords are the adverts you see on the right hand side of Google search results. They work by you selecting the words/phrases you want to bid on; for example, “rent two bedroom flat in West Hampstead”. You then draft a short advert with a link to your property listing. Your advert is then displayed when someone searches for the words or terms you chose and you pay Google a small fee (I pay on average 12p) every time someone clicks on your advert. By clicking on this link you can get a free £75 credit for GoogleAdwords when you spend £25.

5. Promote your property through social networks. Share your online property listing via your Facebook, LinkedIn and Twitter accounts with your connections, and ask them to share it with their friends too. This immediately opens your network. Also look for opportunities on online local community sites such as Camden Netmums, to direct people to your property listing.

Of course, many people do turn to estate agents. An estate agent should complement, not duplicate, your own marketing efforts as they can access customers you can’t. They have shop fronts, databases of people looking to move to West Hampstead and may have relationships with corporate clients. As you don’t pay an agent until they find you a tenant, spread your bets, compare the offers that come in and then choose the option with the best financial return (after deducting any agent fees.)

June 19, 2016
Property News: Prices up but supply still stifled

Two months on from my last article, and it is very interesting to see where the property market now finds itself. Although confidence has very much returned in the knowledge we have a Conservative government, the initial knee-jerk reaction to the election result hasn’t necessarily followed through and although the market has improved since early May, it hasn’t developed in the manner that many people were anticipating.

Prices are most definitely on the rise: one national newspaper reported that asking prices were up as much as much as 17% in London following the election. This is certainly supported by some the offers that we have been receiving recently, which have broken records for the area. West Hampstead in particular is benefiting from its neighbouring areas becoming too expensive, which is inflating the volume of applicants considering the area and therefore pushing up the prices. Family houses are particularly well received in terms of the value for money on offer compared to what is being sold on the other side of the Finchley Road.

One factor that hasn’t changed dramatically over the past couple of months is the level of available property to buy. I regularly speak to potential purchasers frustrated with the lack of homes for sale. The Bank of England reported for the month of May that one in three mortgage applications were for re-mortgaging.

What are the consequences of these figures? The surge in house prices over the last few years has given many the opportunity to buy their next home without having to sell their current home, which is having an impact on instruction levels. This has a knock-on effect on those potential vendors who do need to sell to move as they simply aren’t seeing enough property come onto the market to give them the confidence to make their own home available. The lack of stock in some instances is proving a stumbling block for agreeing sales and is delaying a number of transactions from exchanging contracts. One of the national agents reported this May that they were 17.7% down on exchanges compared with May 2014.

It is widely expected that the autumn will be the strongest period of the year. The initial euphoria of the election result has cooled slightly and it is clear that the market is still finding itself. Once that has happened, I’m very much expecting that we will see a fair balance of supply and demand as well as realistic price growth.

Matthew Sheldon
Manager
Benham & Reeves
West Hampstead
020 7644 9314
Follow @BenhamReeves

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July 14, 2015