Mon 10 Oct 2016
Welcome to Thorgills’ September market insight, which offers a brief synopsis of the sales and lettings markets of West London. The advent of Autumn has brought renewed energy after the summer break and this, coupled with the impending deadline of Christmas, has pushed many home-movers into action.
Many newly built properties have come to the lettings market in Brentford and Ealing over the last few months which has, on occasion, flooded the market in these areas and caused rental prices to fall. In contrast to this, this autumn the West London area as a whole is now suffering a reduction in available stock as many landlords are choosing to renew tenancy agreements with their current tenants rather than list their property to let again. This gives those existing tenants the security of staying in their homes without the stress and logistical challenges associated with moving regularly.
Whilst there are fewer prospective tenants looking to find a home in a narrow selection of properties at the moment, properties that are priced sensibly are going under offer very quickly. Excellent negotiation can get the very best price for a landlord without the usual competition amongst prospective tenants which pushes prices up in busier market conditions. Many landlords are content in accepting slightly lower rents because they are agreeing 24 and 36 month contracts with exceptional tenants which give them a reliable, worry-free income over a longer term.
Having dipped immediately post-Brexit, properties listed for sale across the country have increased in price again but are still only just above the level they were at this time last year. Stock levels have remained constant month on month, reflecting how there will always be a regular turnover of property for sale because people need to move to upsize, downsize or relocate irrespective of the economic climate’s conditions at the time.
Across the UK, the number of sales agreed in September increased 6% on the same time period in 2014. This trend was particularly strong throughout our branches in West London, with a significant increase in buyer registrations and viewings after the summer break. This, in turn, has led to more agreed sales which is excellent news for our sellers.
Over the summer, with solicitors, buyers and sellers away on holiday, the progression of agreed sales was slow. As mortgage interest rates decreased and still show no signs of increasing soon, there was less pressure on buyers to move swiftly with their purchases. However, now that we are approaching the deadline to move in before Christmas, the pace has picked up and we exchanged contracts on more property sales last month than ever before.
Thorgills have weathered the storm of various changes in the property market over the last eight years which gives us the experience to take a pragmatic view and celebrate the net uplift in property values throughout West London during this time. As night follows day, short spells of lower returns on property investment are followed by exciting and lucrative periods of greater incomes for property owners. It is towards these exciting periods that we are focussed. Our ethos of supporting our clients and educating prospective buyers and renters means that we can reduce the emotional impact of the property market’s ebb and flow. Instead we concentrate on helping property owners find excellent tenants and buyers willing to pay the best price in the market.
Average marketing prices for September (based on Zoopla data)
|Sales||1 Bed||2 Bed||3 Bed||4 Bed||5 Bed|
|Chiswick||£439,374 (+1%)||£691,670 (+3%)||£1,049,031(-8%)||£1,545,424 (-2%)||£2,179,691 (+2%)|
|Ealing||£446,807 (-)||£613,872 (-)||£801,490 (-)||£1,050,977 (-)||£1,809,477 (+4%)|
|Isleworth||£295,053 (-4%)||£460,680(+1%)||£596,614 (-)||£802,191 (+1%)||£1,175,529 (+8%)|
|Brentford||£486,408 (+8%)||£632,622 (-1%)||£881,438 (-2%)||£1,009,337 (+1%)||£1,067,500 (-17%)|
|Hammersmith||£566,356 (-2%)||£1,017,778 (-2%)||£1,562,251 (-)||£1,503,753 (-)||£1,620,208 (+3%)|
|Lettings (pcm)||1 Bed||2 Bed||3 Bed||4 Bed||5 Bed|
|Chiswick||£1,626 (+1%)||£2,141 (+3%)||£2,790 (-5%)||£4,144 (-)||£5,680 (+7%)|
|Ealing||£1,272 (-)||£1,846 (-2%)||£2,464 (-5%)||£3,097 (-6%)||£4,383 (-6%)|
|Isleworth||£1,038 (+1%)||£1,406 (-)||£1,866 (+1%)||£2,123 (-5%)||£3,265 (+23%)|
|Brentford||£1,404 (-6%)||£1,972 (-4%)||£2,864 (-2%)||£2,428 (-42%)||£2,933 (-8%)|
|Hammersmith||£1,589 (+4%)||£2,248 (-1%)||£3,058 (-3%)||£4,029 (-)||£3,776 (-1%)|