Welcome to Thorgills’ November market insight, offering a brief synopsis of the sales and lettings markets of West London. As Christmas approaches and we reflect on a difficult year in the housing market there is still time to move and secure a property before the new year.
As we reflect on the year's market activity, 2016 has certainly been eventful for property owners and estate agency professionals! With an increase in the stamp duty rate for owners of additional homes, the instability preceding the EU referendum and then the uncertainty after what was for many a surprise referendum result, everyone with a financial interest in property has felt the impact this year, but in ways we couldn't necessarily have predicted.
In contrast to what was expected by many earlier in the year, over the last few months we have seen an increase in sales stock coming to the market. This is no doubt partly due to the fact that whilst some people may have been in a position to delay their move by a few months, Brexit was not going to stop them moving house. A change of job location, an increase in family size or a need to release equity are all very necessary reasons to move house, and these motivations have kept the sales market moving during this challenging period. Buyers whose circumstances are less time-sensitive are still uncertain on whether now is the right time to commit and as such they are not ready to take the plunge and buy or sell.
Interestingly, what we have seen is that properties which represent good value for money, such as a flat being sold by someone keen to move quickly or a house with tired decor and extension potential, are going under offer much more swiftly than anything marketed at a slightly ambitious price. With healthy competition between sellers, it is those with well-priced property who will sell and move, meanwhile those with more optimistic prices may find themselves remaining on the sales market through into the new year.
Unlike in previous years, many landlords decided to reduce the lettings price of their properties in November in a bid to stimulate interest amongst prospective tenants. In the past properties may have remained on the market throughout the winter. However, with the economic uncertainty at the moment, landlords would rather take a little less for their property in order to have the peace of mind that their property is let out long term.
Like last month, some tenants seem to be choosing to renew their current tenancies rather than vacate and find somewhere else. This is very useful for landlords of currently vacant properties as it means there is reduced supply of competing lettings properties. This means that prospective tenants must make quick decisions with regard to their next home and as long as a property is advertised at a reasonable price, it is likely to be snapped up by someone eager to move in before Christmas.
Over the festive season, friends decide to pool their resources and buy an investment property together, young families realise that their houses are bursting at the seams and are just too small, and older couples make the difficult decision to sell or let our their long-standing home in order to move somewhere smaller. The enforced downtime of the Christmas and New Year break encourages homeowners and home seekers to weigh up their options and make any necessary positive action to change their living arrangements.
Average marketing prices for November (based on Zoopla data)
|Sales||1 Bed||2 Bed||3 Bed||4 Bed||5 Bed|
|Chiswick||£544,712 (+5%)||£678,190 (+2%)||£1,126,639 (-)||£1,571,294 (-2%)||£2,053,032 (-6%)|
|Ealing||£468,101 (+2%)||£613,700 (-)||£786,217 (-)||£1,050,735 (-5%)||£1,930,332 (+1%)|
|Isleworth||£295,352 (+1%)||£469,525 (-)||£557,699 (-3%)||£737,386 (-3%)||£1,175,584 (-6%)|
|Brentford||£477,700 (-)||£612,248 (+2%)||£843,844 (-)||£1,045,966 (+7%)||N/A|
|Hammersmith||£631,297 (+3%)||£1,011,682 (+1%)||£1,578,546 (-2%)||£1,534,768 (+2%)||£2,466,985 (+26%)|
|Lettings (pcm)||1 Bed||2 Bed||3 Bed||4 Bed||5 Bed|
|Chiswick||£1,581 (+1%)||£2,217 (+2%)||£2,891 (+3%)||£3,984 (+4%)||£4,833 (-7%)|
|Ealing||£1,352 (+2%)||£1,864 (-)||£2,413 (-3%)||£2,905 (-1%)||£4,453 (+2)|
|Isleworth||£1,038 (+1%)||£1,412 (+2%)||£1,818 (-)||£2,279 (+9%)||£3,768 (+9%)|
|Brentford||£1,447 (+3%)||£1,960 (+1%)||£3,171 (+2%)||£2,308 (+1%)||£2,931 (-)|
|Hammersmith||£1,606 (-2%)||£2,312 (+3)||£3,338 (+1%)||£4,969 (+3%)||£5,812 (+30%)|