North West London Property Market Update
North West London estate agents TK International uses the end of 2016’s first quarter to assess the local property market, with information that might help buyers, sellers, landlords and tenants plan their next property move.
Property for sale in North West London
According to Rightmove, most of the sales in North West London last year were flats, which on average sold for £588,573. Interestingly, the first quarter of 2016 came to a close with news from Halifax that flats are now more expensive to buy than semi-detached properties, with a value rise of 57% since 2008 (compared to a 34% rise for semi-detached homes).
Looking at London with a more bird’s eye view, North West London remains a cheaper place to buy property (£686,571) than West London (£1,114,537) and Central London (£1,307,294), and is on a par with prices seen in North London. While house prices in many Central London areas have taken a dip, values in North West London were 4% up on the year before and 14% up on 2013, when they averaged £604,908.
The table below shows Rightmove’s average sale prices for North West London property:-
Area Average sale prices
Primrose Hill £1,497,472
Hampstead £1,337,825
West Hampstead £777,619
Belsize Park £1,184,675
Swiss Cottage £1,223,166
South Hampstead £853,002
A recently commissioned survey by Rightmove found there is a serious lack of homes for sale in the wider market, which has pushed prices up. While Rightmove’s Miles Shipside says there are ‘insufficient numbers of newly listed properties in many parts of the country to meet demand’, TK International is not finding a lack of properties a problem.
There are a number of stunning properties across the board in North West London. At the premium end, for example, is a spectacular newly built five-bedroom house priced at £9,950,000 in Redington Road, Hampstead, complete with cinema room, gymnasium and an indoor leisure complex including a swimming pool, spa and sauna. For a more entry level choice, TK International is selling a bright and airy newly refurbished one-bedroom flat within a Victorian building in East Heath Road, Hampstead for £550,000.
Property to rent in North West London
According to February’s Homelet Rental Index, average rental values in London still remain resilient at £1,521 per calendar month (pcm), which is 104% higher than the rest of the UK at £744. This follows increases for the two previous years - February 2015 at 99% and February 2014 at 89%. Yields across North West London are in the region of 3%, according to findproperly.co.uk, although returns will depend on a landlord’s individual circumstances, the type of property that is being offered and the demand in the local area.
The future of the buy-to-let sector in North West London will be shaped over the coming months by the new second home stamp duty level; the new buy-to-let lending restrictions proposed in March by the Prudential Regulation Authority, and a duo of tax relief changes pertaining to mortgage interest and wear and tear allowances.
For tenants, TK International has a wide range of properties to rent in North West London. At the top end of the market, tenants can expect to pay in the region of £26,000 pcm for a five-bedroom family home, while a well presented two double room penthouse apartment may be secured for around £2,817 pcm.
Daniel Epstein, one of the Partners at TK International, comments: “Demand in North West London among both buyers and tenants remains very strong, especially with home movers looking outside of traditional prime London areas such as Knightsbridge, Mayfair and Hyde Park. We’re also tracking the Build to Rent programme that could see a swathe of brand new properties exclusively for private rent flood the London lettings market. It will be interesting to see how private landlords respond to this.”
If you would like to discuss your next property move, please contact TK International today.
