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Our CEO Richard Palfreeman’s Insider Views of the Property Market November 2013

15 Nov 2013

The clocks have gone back, Halloween has been and gone and the firework displays have taken place. Jessie J switched on the lights in Oxford Street last Saturday and the mince pies are in the supermarkets which can only mean one thing; Christmas is fast approaching.

Read all about it: what the media had to say about the property market this November

The shape of the property market has rarely been out of the headlines over the last few months as the Government starts preparing the ground for the General Election within the next two years. The early launch of Help to Buy 2 on 8 October; the Royal Institution of Chartered Surveyors (RICS) calling for an annual 5% cap on house price rises; reports of the Government introducing Capital Gains Tax on overseas buyers in the Autumn Statement and yet more whisperings about mansion tax, have resulted in abundant coverage within the media.

The property market in Ealing

The property market in Ealing is busier than ever with the highest turnover of sales in the last 6 years.

According to latest figures from the Land Registry (from Jul-Sep) in the W5 postcode, 214 exchanged hands – an increase of 50% in the same period last year. Terraced houses here are now averaging at £646,136.

Shortage of property available for sale in London

At present there is a considerable shortage of available property at all ends of the London property market‎ and not enough new property is being built to meet demand. This has led to some staggering prices being achieved with many records being set. While demand stays high and overseas purchasers remain committed to London as a place to invest, then property prices will continue to rise in the same way that we have seen over the past few years.

Our recently opened Ealing Broadway Sales office has recently sold a property in Grange Road, Ealing which received multiple offers and achieved a staggering 17% over the asking price.

Grange road sold by Northfields as Ealing Property market heats up
This property in Grange Road, Ealing was recently sold by our Ealing Broadway office for 17% over the asking price

Is it a good time to make a move out of London?

Savvy property owners, who are considering a move to the country, should seize the chance and take advantage of much higher demand for properties which are achieving record prices, whilst there is still considerable value to be found outside the M25.

What effect will the Help to Buy Scheme have on the property market?

Help to Buy 2 is a necessary scheme for those able to afford to repay a mortgage but without a large enough deposit, and should further stimulate the market. In fact recent reports show that mortgage lending is now at its highest level since before the financial crisis and ‘second steppers’ are house hunting, confident there will be a buyer for their first property.

One aspect that needs to be understood is that lenders do charge much higher interest rates on 95% loans than on 75% loans and so, even if the new scheme enables someone to purchase, the cost of doing so could be significantly increased. This factor may help reduce fears of a housing bubble being created.

What is happening with the rental market in West London?

With the festive period looming we are busy helping tenants find a new property before the start of the festive period.  Applicants have high expectations and correct pricing, good transport links and good specification and presentation has been the key to attracting the best tenants this year. Applicants are taking their time when making a decision on where to rent and sometimes the landlord needs to meet them part way and be flexible to ensure their property lets quickly and to avoid any void periods.

Want to make a move before 2013 is over?

With just over 6 weeks to Christmas, there’s still time to make a difference to how your year ends and if moving is on your 2013 to-do list, then please call us now on 020 8740 6622 or email us at [email protected] – our friendly staff will help you every step of the way.

The small things, such as talking to our clients regularly, providing feedback for every viewing and quickly returning telephone calls and replying to emails ensure we set ourselves apart from our competitors.  And the excellent prices we achieve speak for themselves.

Enjoy the rest of November and I look forward to speaking with you soon.  Remember that I’m available on Twitter to offer you free advice, just tweet your question to @northfields

Richard Palfreeman