Starting in June, West London seems to come alive with community events. And just as the locals come out to events like Party in the Park in Pitshanger, Northfield Avenue Summer Fun Day or the Ealing Summer Festival, the sun seems to bring out more house-hunters.
Those house-hunters will find that the landscape of the Ealing property market is just as hot as the summer weather! In Ealing there have been incredible records set for house prices in the first half of the year.
Data released this month by property portal Rightmove has shown that asking prices in Ealing have gone up by 4.6% since last month alone and the year on year price growth has reached a staggering 21.6% yearly change. The average asking price in Ealing in May 2014 was £604,613.
The Land Registry which charts actual sales prices achieved, revealed earlier this month that the West Ealing area has reached a new all-time high with the average price of a home in the W13 postcode reaching £558,026 – up by 20.4% from the same period last year.
In W5 the overall average has fallen slightly from the high prices seen at the end of 2013 but when you compare the first 3 months of 2014 with the same months the year before, the W5 area has seen a 14.7% rise in prices, with the average home coming in at £581,074.
When you compare asking prices against the actual sale prices achieved in those same three months from January to March 2014, W5 homes achieved 96.11% of the asking price on average while W13 homes achieved 92.29% of the average overall Ealing asking price.
At Northfields we’ve been able to achieve sale prices well over the asking price ranging from 2% in Fowlers Walk in the Brentham Garden Estate in Pitshanger to more than 35% of the asking price in Grange Road in W5.
Volumes of sales were also higher in the first part of the year, with figures recently released by the Land Registry showing that the number of completed house sales in England & Wales increased by 46% to 63,123 compared with 43,373 in January 2013.
One major change we’ve spotted at Northfields shows a marked departure for the development of new homes in West London and Ealing in particular. During the credit crunch, many developers in the area were concentrating on creating high end, single family dwellings, like this five bedroom home in North Avenue, Ealing. Now we’ve seen surge in developers focussing on the market for 1-2 bedroom flats.
The emphasis has been on high specification homes with luxury features like iPad interfaces providing central music entertainment and remote heating systems that control the entire home. These highly interactive home solutions will be available off the shelf in years to come but are available in your home today with new home developer Uplift – an innovative company that we are working with to sell distinctive homes like the collection of new build 1-2 bedroom apartments we are currently selling in Grange Road. The demand for homes that are so ahead of the curve is such that we are currently achieving £900 a square foot for two bedroom properties and £950 for one bedroom homes.
In April, the number of new mortgages being approved fell to 42,173, from 45,045 in March, according to the British Bankers’ Association (BBA). Interestingly, the total amount of money lent out to home-owners – rose to £12.2bn in April, the highest since August 2008.
Results from the New Council of Mortgage Lenders (CML) have shown that buy-to-let mortgages are up 46% on this time last year, showing positive year on year growth in the buy-to-let sector. This is a good indication that confidence amongst investors continues to be strong with many trying to increase the size of their portfolios and take advantage of low interest rates.
While the Mortgage Market Review (MMR) affordability rules are pushing up the cost of fixed rate loans and making applying for finance a more testing experience, Mark Carney declared earlier this month that “interest rates are likely to remain low for some time” so borrowers should not panic.
I’d strongly recommend that it is now more important than ever to have an independent, whole of market mortgage broker on your side who understands the new regulations and can help guide you through the new lending requirements so you have the strongest chance of securing a mortgage.
We have seen a 23% increase in the number of new tenants registering, indicating increased competition in the London lettings market as we head towards the traditionally busy summer period. We are also finding that tenants are choosing to stay put and opting to renew their current contract instead of moving on.
On the Property Tribes forum for landlords, Vanessa Warwick recently shared her insights into investing in property in London. Citing the nearly £1million that will be spent improving 10 local shopping parades in the area, this landlord and property expert chose Ealing as a “borough to watch”. Acton and Perivale made her list of the top 20 most affordable areas for better yield, as did another West London area where we have an office – Shepherd’s Bush.
We’re seeing increasing levels of demand for higher quality properties in Ealing and West London. As tenants demand higher quality property and longer tenancies, we’re now focusing on providing the best marketing in West London to compliment the high quality of the properties themselves. Over the years we’ve consistently won awards for our innovation in the lettings market and we’re not resting on our laurels now. We’re recently changed our software to allow us to offer more interactive marketing, with the highest quality marketing that you’ve come to expect when selling property through us. We predict that we’ll be setting the trend for what landlords should be expecting from their lettings agents in the future.
If you have any questions about the property market in Ealing or West London feel free to give us a call on 0208 740 6622 or request your valuation online. Even if you’re not ready to sell or let yet, we’d be happy to give you an up-to-date valuation of your property so you know exactly how the West London market will affect you.