Category: BenhamReeves

  • Property News: Prices up but supply still stifled

    Property News: Prices up but supply still stifled

    MatthewSheldon_grey

    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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  • Property News: The impact of the election on house prices

    Property News: The impact of the election on house prices

    MatthewSheldon_grey

    The waiting is finally over. After months of predictions and speculation, we now know that the country will be led by a Conservative government. So where does this leave the property market? Generally speaking, house prices increase more under a Tory government. In fact, according to the Nationwide house price index, since 1970, they have risen at an average of 19 percent per year compared to 10 percent a year under Labour administrations.

    It is widely expected that this trend will continue. The threat of a ‘Mansion Tax’ has now been quashed and this will prevent any potential rigidity that there would been in pricing at around the £2 million mark. Owners of properties in this price bracket now have a degree of flexibility around the asking price they can set and this will allow the market to dictate what each property is actually worth. The Mansion Tax would have devalued those homes worth more than £2 million and that could well have had ramifications for prices further down the market.

    Buyer confidence will certainly return. I have been dealing with a few situations where prior to the election we had received offers that weren’t acceptable to our clients. The potential buyers came back to us and said that they would consider increasing their offer once they knew outcome of the election. Within hours of the results, they increased their offers. We also had new instructions and only a day later, one of those new properties received an asking price offer.

    Another real problem over the past few months has been the lack of supply, in particular between £1.5 and £3 million. There have been very few family homes for buyers to choose from and that should now change for obvious reasons. However, demand will increase too and it will be interesting to see where the market goes from here.

    Are we going to see another housing bubble? It is a distinct possibility, particularly in the short term as I feel that the election result provides a real shot in the arm for the market. In the long term, however, it is imperative that the market reaches more of an equilibrium. According to Nationwide, house prices are now 9 percent below their peak, suggesting positive price growth for at least five years. In order to create stability over the longer term and to encourage a more gradual rise in house prices, it is crucial that more land is released for house building. The Conservatives plan to deliver 200,000 new homes, which they are prioritising for first time buyers. This will certainly come as welcome news to the house building industry and will go some way towards aiding a more sustainable property market in the long run.

    There is certainly an element that the market will still need to find its natural level, but the outlook is certainly positive. An increased level of supply, with the potential for a measured house price growth over the coming years makes this a really good time for buyers and sellers alike.

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

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  • Property of the Month: May

    Property of the Month: May

    This month’s property from Benham & Reeves is a large 2-bedroom flat on prestigious Crediton Hill.

    Crediton Hil
    West Hampstead, NW6
    £825,000 (Guide price)
    Sole agent

    CreditonHill exterior

    CreditonHill living room

    CreditonHill bedroom

    CreditonHill view

    An excellent two-bedroom apartment of approximately 850 sq ft on the second floor (top) of an attractive Victorian conversion on one of West Hampstead’s premier roads.

    The apartment, which is particularly bright throughout, comprises a generously sized master bedroom that boasts fabulous views of the neighbouring gardens and has access to an en suite, a second double bedroom, a spacious reception room, separate kitchen and an additional bathroom. The property has a rather homely feel to it as well as a certain charm and would make an ideal rental investment or first time purchase.

    Crediton Hill is situated just moments away from the amenities, leisure facilities and multiple transport links that West End Lane has to offer whilst being a not too distant walk from the open green spaces of Hampstead Heath.

    2 bedrooms * 2 bathrooms (1 en-suite) * reception/dining room * kitchen/breakfast room * residents parking zone

    West Hampstead Sales Office | 020 7644 9300
    106 West End Lane London NW6 2LS | Email:
    http://b-r.co.uk/property/details/100135672

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  • Property News: Pre-election uncertainty holding high-end market back

    Property News: Pre-election uncertainty holding high-end market back

    MatthewSheldon_grey

    New year, new face. I am the new manager of Benham & Reeves’ West Hampstead office. I have arrived from our Hampstead Office, having previously worked for a large international company as well another local independent company.

    It has been an interesting start to the year. Available properties are relatively thin on the ground and one would be forgiven for thinking that this would mean be a lot of competition on each available instruction, as the number of buyers certainly exceeds the level of supply. However, so far that hasn’t appeared to have been the case and we are in a very price sensitive market. If the asking price of the property is correct and seen as reasonable then we are seeing a strong number of viewings, followed by relatively quick interest, leading to an agreed sale. Those properties that are deemed expensive are sitting on the market with too few viewings and then end up having to be reduced. The upshot can actually be that they sell for less than they are worth as the aggressively high initial asking price creates a negative sentiment around the property the longer that it remains on the market.

    These market conditions are in keeping with recent reports about mortgage lending. According to the council of Mortgage Lenders, lending in January was down 14% from December and 11% from January last year. Buyers have to feel tempted to come and have a look at properties in order to act, and some of the unrealistic prices that are being asked are leading to a reduction in the lending figures as well as sales figures, which were down by 6% according to the HMRC compared to January 2014.

    Of course, for those properties that have something a little bit extra special, it’s still realistic to achieve a premium figure. We were recently instructed on a property at a prime South Hampstead address – an absolutely stunning flat. The marketing figure was correct, it attracted a decent level of viewings, and is now under offer at what will be a record pound per square foot price for its road, should contracts be exchanged.

    If we look at the market for properties above the £2 million mark, then we certainly see the effects of the upcoming election. The uncertainty surrounding the threat of a “Mansion Tax”, is causing people to think twice about moving before May. Anyone who owns a home worth more than £1.5 million is starting to feel a little bit unsure about the potential repercussions should we see a Labour or Labour-led government, and this is certainly causing buyers and sellers in this price range to hold fire. That explains both the distinct lack of available property above £2 million, but also between £1.5 and £2 million. The amendments to the stamp duty thresholds have also had an impact in this sector. A number of transactions were either renegotiated or, in some cases, fell through, as buyers were hit with a much greater tax bill than they were expecting when a sale was originally agreed.

    Having said all of that, if the asking price is realistic, there is still interest in this area of the market. We were instructed to sell a house on Goldhurst Terrace, at £3.75 million, and simply due to the lack of stock available at this price, there were four buyers interested in the house and it is now under offer. I have been suggesting to some potential vendors over the past couple of months that it may be a good time to think about selling as while most people are unsure about moving given the uncertainty, there’s less competition from other sellers, and there are buyers out there. After the election, we could see a lot more coming onto the market.

    What is a certainty, is that I am very much looking forward to there being clarity and to what will hopefully be a very stable market. People were of the opinion that the early months of last year were good for estate agents, but those of us in the business knew all too well what was to follow. It appears that the market is more realistic now and there has undoubtedly been a correction in the prices. Once the uncertainty is cleared up, I am confident that we will see a much healthier balance within the market.

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

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  • Property of the Month: March

    Property of the Month: March

    This month’s property from Benham & Reeves is a 4-bedroom Victorian home near Hampstead School.

    Richborough Road
    West Hampstead borders, NW2
    £1,150,000
    Sole agent

    Richborough Road external

    Richborough Road kitchen

    Richborough Road living room

    Richborough Road garden

    A stunning four bedroom semi-detached Victorian home of approximately 1500 sq ft. Presented in excellent decorative order throughout, featuring two wonderful reception rooms, both with high ceilings, ornate cornicing, as well as working fireplaces. The property has a fabulous kitchen diner with doors opening out on to a spacious patio garden area, the garden can also be accessed via the side of the house. Comprising three generously sized bedrooms, one with a luxury en suite bathroom, a single bedroom and another shower room. This property, which is one of the larger houses on Richborough Road, also boasts having an off street parking space for one small car.

    Located within easy reach of both Kilburn (Jubilee Line) and Cricklewood Thameslink stations, the property is also located a not too distant walk from the popular Mapesbury Dell and benefits from being situated in the Camden School’s catchment area. The house has potential for further scope to improve and extend the accommodation by extending into the loft space (subject to the necessary consents).

    Family homes offering such fantastic entertaining space and in this condition are rarely available to the open market and early viewing is advised.

    4 bedrooms * en-suite shower room * bathroom * 2 reception rooms * kitchen/dining room * guest WC * front & rear gardens * off-street parking for one car

    West Hampstead Sales Office | 020 7644 9300
    106 West End Lane London NW6 2LS | Email:
    http://b-r.co.uk/property/details/100134717

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  • Property of the Month: January

    Property of the Month: January

    This month’s property from Benham & Reeves is a 1-bedroom flat in West Hamptead Square.

    West Hampstead Square, West End Lane
    West Hampstead, NW6
    £579,950
    Joint agent

    West Hampstead Square_living room

    An opportunity to buy an ‘off plan’ 1 bedroom apartment on the second floor of Block C in the brand new West Hampstead Square development adjacent to West Hampstead tube station on West End Lane. Due for completion in Spring 2015 these flats have proved enormously popular with end users and investors alike due to the location and high end specification.

    Bedroom * bathroom * reception room/open plan kitchen * balcony

    West Hampstead Sales Office | 020 7644 9300
    106 West End Lane London NW6 2LS | Email:
    http://b-r.co.uk/property/details/100133557

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  • Property of the Month: September

    Property of the Month: September

    This month’s property from Benham & Reeves is a 3/4-bedroom apartment in need of work on Gondar Gardens.

    Spring Mansions, Gondar Gardens, West Hampstead, NW6
    £865,000
    Sole agent

    Spring Mansions_external

    Spring Mansions_reception

    In need of complete modernisation, a 3/4 bedroom mansion flat offering bright and flexible accommodation comprised of rooms with high ceilings, period features and far-reaching views, arranged over the top floor of an end of terrace characterful and grand period building.

    Gondar Gardens is a quiet residential road located off Mill Lane and within easy reach of the restaurants, cafes, shops and excellent transport Links of West Hampstead.

    3/4 bedrooms * bedroom4/reception room * bathroom * reception room * study * kitchen * residents parking zone

    West Hampstead Sales Office | 020 7644 9300
    106 West End Lane London NW6 2LS | Email:
    http://b-r.co.uk/property/details/100133918

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  • Property of the Month: July

    Property of the Month: July

    This month’s property from Benham & Reeves is a two-bedroom apartment with a garden on Mill Lane.

    Mill Lane, West Hampstead, NW6
    £600,000
    Sole agent

    Mill Lane 2 garden

    Mill Lane 2 kitchen

    Mill Lane 2_bedroom

    Mill Lane 2 reception

    A beautifully presented 2 double bedroom garden apartment forming part of a period building conveniently located on vibrant and up-coming Mill Lane. The property offers spacious and modern accommodation in ‘ready to move into’ condition. Of particular note, and unusual for this location and size of property, is a lovely south facing courtyard garden which can be accessed directly from either the master bedroom or reception/kitchen. Mill Lane provides easy access to the many transport links, cafes, restaurants and shops of West Hampstead. Early viewing is advised.

    Master bedroom with en-suite bathroom * second bedroom * shower room * large reception room * kitchen * cellar * rear garden * private off-street parking for one car

    West Hampstead Sales Office | 020 7644 9300
    106 West End Lane London NW6 2LS | Email:
    http://b-r.co.uk/property/details/100134294

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  • Property of the Month: June

    Property of the Month: June

    This month’s property from Benham & Reeves is a two-bedroom apartment with a garden in Fawley Road.

    Fawley Road, West Hampstead, NW6
    £1,300,000
    Joint agent

    Fawley Road_reception

    Fawley Road_patio

    Fawley Road_shower

    Fawley Road_garden

    A stunning 2 bedroom garden apartment arranged over the raised ground floor of a period house on a quiet, treelined road only moments from the shops, restaurants and excellent transport links of West End Lane. Presented in excellent internal decorative condition, the flat has been lovingly refurbished using the finest materials and successfully blends modern interior design with original period features. The large reception room leads directly out to a paved area ideal for entertaining, which in turn leads to a generously sized rear garden mainly laid to lawn.

    Private off street parking for one car adds convenience and further value to this ‘must see’ property.

    Master bedroom With en suite bathroom * second bedroom * shower room * large reception room * kitchen * cellar * rear garden * private off-street parking for one car

    West Hampstead Sales Office | 020 7644 9300
    106 West End Lane London NW6 2LS | Email:
    http://b-r.co.uk/property/details/300220261

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  • Build high or fiddle while Rome burns?

    Build high or fiddle while Rome burns?

    In my last Property News article I extolled the virtues of a rising London property market and the benefits to the economy of foreign investment via the ‘multiplier effect’. Some of you may be surprised to learn that I’m not a capitalist at heart, but I suppose I was just getting fed up with all of the constant talk of housing bubbles and ‘where will it all end?’. It was more a case of: there’s very little any of us can to do change it, so it may be better to embrace the positive aspects of it. But is that true and what might be the long term consequences?

    Clearly, opinion will be divided based on whether you are a property owner or not. But don’t we all have a responsibility to future generations to consider the very serious situation that London and the UK finds itself in? The harsh reality is that we are not building enough homes to satisfy the ever increasing population. A mixture of red tape planning bureaucracy and policy, NIMBYism and economic conditions mean that we have very little hope of making this any better without serious reform and a change of policy and attitude.

    The Barker review highlighted the severity of the situation back in 2004, and the Department for Communities and Local Government now estimates that we need to build 232,000 new homes in the UK every year between now and 2033. At the moment, only 120,000 homes are being built each year. The Greater London Authority’s 2012 Round Projections of population growth for London shows an increase of 2 million residents between now and 2034. This doesn’t account for the changing way in which we now live; more single person dwellings or for our longer life expectancy.

    The numbers don’t add up and it really cannot be any surprise that we have double digit growth in the London property market. What is more concerning is that we don’t seem to have any policies that are directly addressing this problem.

    The last Labour government’s response to the Barker report was to introduce a regional level of planning under which each region had to file its own plan outlining policy for development within its region. By the time the coalition government came to power, very few of these regional plans had been filed and approved and the new government decided that these only created more red tape and that the answer to our planning problems was to decentralise planning policy by empowering local communities and increasing permitted development rights.

    The grand plan is to let local residents decide on what’s best for the area and to free up buildings and sites for development by removing red tape. The regional tiers were promptly abolished and the Localism Act became law in 2011.

    Nick Clegg declared that the Localism Act was “a move from big government to Big Society”. He went on to say “It marks the beginning of a power shift away from central government to the people, families and communities of Britain”. Great sound bites at a time when trust in government was at such a low point.

    The Localism Act allows for the creation of Neighbourhood Development Forums (NDFs) which can formulate a Neighbourhood Development Plan (NDPs) outlining policy for the designated area and identifying sites for development. The potential problem with such plans is that they must be approved by the local authority and also comply with the local authority’s planning policy and the National Planning Policy Framework (NPPF). In London, they also have to comply with the London Plan.

    It seems to me that actually nothing is being decentralised, as all plans have to comply with central policy to be approved. In fact, West Hampstead’s NDP, which was one of the first, is still awaiting final approval from Camden.

    Another worrying aspect of these plans is that they cannot actually veto any planning decisions, but they do present another layer of statutory planning guidelines that developers must adhere to and that objectors can cite in any attempts to delay or block proposals.

    There will also be a concern in some areas that NDFs may not be representative of the whole community, although local authorities do require evidence that significant efforts have been made to address this before granting approval.

    Preservation of the look and feel of our area is also a concern for those living within it. The rows of Victorian terraced houses in West Hampstead and the red brick properties and mansion blocks of South Hampstead are prized and protected assets of our area. But how can we balance the preservation of such areas with the need for building more homes? The Camden plan for West Hampstead says it “expects development in the growth areas to be predominantly housing and seeks to encourage high density development”. By contrast, the local NDP states

    Recent development in the past decade has raised a number of concerns, particularly as the population of the area grows, more new homes are built and the population density of the area increases. For many residents the height of new buildings is a key issue. In an area largely made up of houses and buildings between 2 and 5 storeys high, new developments of six storeys or higher are likely to cause strong objections.

    Such opposing views must be commonplace across most of London and highlight the difficulty of building enough new homes to satisfy demand whilst preserving the local environment and feel of a community.

    West Hampstead has six potential sites identified for redevelopment and arguments over the height and size are likely to be ongoing with planners and the NDF for some time.

    It is surely inevitable that we will have to give up on these principles of preserving the height of buildings in London. Sci-fi movies show a vision of future cities with buildings reaching into the clouds with a mix of social and private housing. If we want to provide future generations with affordable housing in London whilst protecting our countryside should we not be considering constructing these buildings now? Such projects would also ease the burden on transport infrastructure and improve the quality of life of key workers forced to move increasingly further out due to increased property prices. Other cities in the world have already accepted the inevitability of this.

    The key objective of the NPPF is to achieve sustainable development. Sustainability means building that would not be detrimental to future generations. Isn’t it time we developed our planning policies to cope with these future demands rather than fiddling while Rome burns?

    Darryl Jenkins
    Associate Director
    Benham & Reeves
    West Hampstead
    020 7644 9300
    Follow @BenhamReeves

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