West Hampstead Life

Category: Property

Property News: Tenants on the move

Now the dust has settled I finally feel like we can share some of our feelings about how the General Election affected the lettings market this year. Although it certainly hasn’t shaken up the market, we have noticed a couple of significant shifts in the months immediately post the 2015 General Election.

The first point of note is that following the General Election we have experienced more tenants serving notice to terminate their contracts than is usual for this time of year. After speaking to these tenants the consensus is clear; tenants were nervous about what the outcome of the General Election might mean for them and waited for the results before searching for a property for sale.

We’ve found that tenants who previously rented at the higher end of the local market are doing all they can to get onto the mortgage ladder as interest rates continue to remain historically low since the General Election. There’s a clear mortgage battle in play between the market lenders too and some tenants in the area are using this opportunity to benefit from competitive rates for first time buyers with a small deposit or low loan-to-value.

I’ve mentioned in previous articles that over the last few years tenants are staying in the same rental property for longer as the private rented sector becomes the norm for many Londoners. Due to this it’s always really interesting to speak to tenants when they serve notice to understand where they are going next. Since the General Election the majority of tenants who have served notice on their West Hampstead rental property have done so because they’re searching for or found a property in the local area. With property prices at an all-time high in London, this strongly suggests that tenants like to trial an area before committing to an expensive purchase.

Although more tenants are moving on than usual for this time of year, demand still significantly outstrips supply. As usual this comes with a caveat; applicants are very sensitive to the quality of the product and even in a buoyant market properties that do not suit the taste of the searching demographic will sit empty. Considered capital investment is imperative when attracting tenants, with a further benefit being a direct correlation between a well maintained property and length of tenancy. At Paramount we’ve found that well finished and fully managed rental properties boast average tenancy lengths of 36 months.

We’ve also seen a small rise in the number of landlords who have decided to sell their buy-to-let investments this year. Landlords who have owned their rental properties for 10+ years with low gearing are leading this trend, and some have decided to look for new buy-to-let opportunities in different areas that offer more value to tenants to ensure they continue to attract young professionals.

Those looking to rent in West Hampstead will be pleased to know that we have plenty of properties coming onto the market this month. This is a great time to search for something new as the market will only get busier with applicants as the summer season progresses.

Spencer Lawrence
Lettings Director
Paramount Properties
150 West End Lane
West Hampstead
020 7644 2314

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June 17, 2015
Property of the Month: June

This month’s property from Paramount is a two bedroom flat on Inglewood Road in West Hampstead.

Inglewood Road, West Hampstead, NW6
£495 pw

This stylish two bedroom property in West Hampstead is available to rent now. We especially love the amazing views across London from the balcony.

The property has a spacious living room with wood flooring, open plan kitchen with integrated appliances (including a wine cooler!), bathroom with shower, master bedroom with fitted wardrobes and a second double bedroom. The flat is available part furnished.

Set within a prestigious mansion block close to the amenities and transport links in West Hampstead, this is a great place to call home.

Admin charge is £120 inc VAT. Inventory is £100. There are no renewal fees if you decide to renew the tenancy.

Paramount | 020 7644 2315
150 West End Lane London NW6 1SD | Email:
http://www.paramount-properties.co.uk/rent/search/details/2-bedroom-property-to-let-in-West-Hampstead-NW6-parrps-PAR150083

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June 12, 2015
Property News: The impact of the election on house prices

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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May 12, 2015
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

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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May 5, 2015
Property News: Rental market buoyant in run up to election

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With the General Election looming we’ve been looking back at the last five years in terms of the local property market. Since the last election we’ve seen the introduction of the Help to Buy scheme and a reform of stamp duty, with the latter saving the average first time buyer in West Hampstead thousands of pounds.

Labour is pledging 200,000 new homes a year by 2020 in its manifesto (vs. the Liberal Democrats’ 300,000), in order to create much needed new homes. Labour also wants to address letting agents’ fees to tenants and change legislation in favour of three-year tenancies. Meanwhile the Conservatives want to extend Right-to-Buy to tenants in Housing Association properties and double the number of first-time buyers in comparison to the last five years.

We took a closer look at some of our own statistics to see how things have changed since the last election. We’ll be publishing content regularly on the Paramount blog in the lead up to the election, but one thing we’ve identified so far is that in Q1 2015 there has been a 22% decrease in 18-24 year olds showing interest in properties to rent and buy in West Hampstead compared to the same period in 2010, with a 20% increase in 25-34 year olds looking in the area. I doubt this will come as a surprise to many, with London in general often out of reach for buyers and tenants alike.

Politics aside, as we head into the second quarter of 2015 the lettings market is buoyant. Enquiries have increased month on month since the start of the year, which is usual for the lettings market. The market historically picks up considerably after the Easter bank holiday weekend and this year was no different, with a lot of applicants looking to find new suitable homes over the last week and a half. We expect garden flats to be extremely popular over the next few weeks now that the daffodils have appeared and the daylight hours have got longer.

There continues to be a fair amount of properties for tenants to choose from, although good quality, competitively priced one and two bedroom properties are letting in record time. It’s a notable change since March – just one month ago tenants were taking longer to commit to properties, and landlords were finding the market quite competitive.

Despite the ever fluctuating nature of supply and demand locally, rents have increased by approximately 3% compared to this time last year. In some instances rents have increased by much higher than this, but that’s occurring more in Queens Park than in West Hampstead.

Although demand for properties is high, landlords need to continue investing in the properties. Quality of stock is very important and tenants expect a quality finished product to move into. Landlords that deliver this will find excellent tenants who want to treat the property like a home in a very short space of time.

Spencer Lawrence
Lettings Director
Paramount Properties
150 West End Lane
West Hampstead
020 7644 2314

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April 17, 2015
Property of the Month: April

This month’s property from Paramount is a two bedroom flat on Gladys Road, West Hampstead.

Gladys Road, West Hampstead, NW6
£400 pw

The property is a beautiful raised ground floor flat set within a period conversion. The property has wooden flooring throughout, a bright reception room, separate kitchen, tiled bathroom and both bedrooms have fitted storage.

Located in the heart of West Hampstead it’s close to all transport links and popular local shops.

The property is part furnished and is available to rent now.

Admin charge is £120 inc VAT. Inventory is £100. There are no renewal fees if you decide to renew the tenancy.

Paramount | 020 7644 2315
150 West End Lane London NW6 1SD | Email:
http://www.paramount-properties.co.uk/rent/search/details/2-bedroom-property-to-let-in-West-Hampstead-NW6-parrps-PAR150041

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April 8, 2015
West End Lane could soon be clear of agents’ boards

Last February, we reported on local resident Alan Grogan’s campaign to rid West End Lane of the large number of estate agents’ boards that were attached to many properties along the road. Many agents responded swiftly to our article and, within a couple of weeks, had voluntarily removed their boards from buildings. However, quite a few of the signs still remain up more than a year later.

This week, just as Foxtons added to the glut of estate agents on West End Lane, Alan got the news he’d been hoping for. Camden Council has submitted the Regulation 7 Application to ban all estate agents’ boards for the stretch of West End Lane between the tube station north to David’s Deli. This means that barring any major objections, the proposal should pass in the next few months.

Alan said that he is hoping the ban will come into effect “in time for the summer and we’ll have a very, very nice looking high street”.

Two of the signs still on West End Lane that would have to come down if Camden’s proposal is passed

March 21, 2015
Property News: Pre-election uncertainty holding high-end market back

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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March 10, 2015
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

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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March 3, 2015
Property News: West Hampstead tenants’ extra expectations

I’m worried that I’ve started to sound like a broken record. Every two months I write about the rental market for West Hampstead Life, and every two months I say the same thing: demand for rental property in West Hampstead is sky high.

I promise you that this isn’t laziness on my part. Demand for rental properties in West Hampstead continues to grow, especially for one and two bed flats. These flats are regularly on the market for just a matter of days before contracts are signed and a move-in date is set.

Although demand has been continuously high for many years, not everything remains the same though. One thing we have noticed over the past year is that our applicants now have an excellent knowledge of the local rental market. They do their research, they understand how the market operates and aspirational levels are rising too. They’re familiar with the property specifications found in new build developments and they expect this standard of presentation from all rental properties. We regularly feed this information back to our landlords and encourage them to treat their rental property as a business, by injecting regular investment into the property by way of new carpet or a new kitchen if needed.

Demand might be strong but applicants won’t accept a property if it doesn’t match their expectations. In order to let property as quickly as possible so we can avoid void periods, we advise landlords to present the flat to the best of their ability. Presentation is key when attracting tenants, and that includes communal areas as well as the property itself. The entrance of a residential building is equally important, and landlords who own flats in a period conversion should consider joining forces with other owners to smarten up communal areas if necessary.

Feedback from tenants in 2015 highlights that proximity to an underground station is high on most of their wish lists. Properties further than 10 minutes from the tube are slower to let and applicants would rather compromise on square footage if the location is good. It’s always been about an applicant’s lifestyle choices, and proximity to excellent transport links is more important than ever.

As I mentioned earlier, applicants have a better knowledge of the local property market than ever. The internet is key for sharing information and it’s great to see more and more people aware of what is happening in the local market. Perhaps because of this applicants are very sensitive to price, and they are prepared to negotiate to reach an agreement that is acceptable to them. Landlords who are also prepared to negotiate a bit will find their property lets more quickly.

In order to provide the very best service to applicants, tenants and landlords we’ve needed to expand our business. I’m thrilled to welcome two new Lettings Negotiators to the Paramount team, and I look forward to sharing their experience of working in West Hampstead with you over the coming months.

Spencer Lawrence
Lettings Director
Paramount Properties
150 West End Lane
West Hampstead
020 7644 2314

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February 10, 2015