Local W4 market information for homeowners, Landlords & Investors.

Month: November 2016

Chiswick Housing Crisis? Only 5.4% of Chiswick Homes Are For Sale

The Chiswick Property Market continues to disregard the end of the world prophecies of a post Brexit fallout with a return to business as usual after the summer break.

 

The challenge every Chiswick property buyer has faced over the last few years is a lack of choice – there simply hasn’t been much to choose from when buying (be it for investment or owner occupation). Levels are still well down on what would be considered healthy levels from earlier in this decade, as there is still a substantial demand/supply imbalance. Until we start to see consistent and steady increases in properties coming on to the market in Chiswick, the market is likely to see upward pressure on property values continue.

 

However, there may be hope for first time buyers, with homeowners looking to move upmarket and buy to let landlords looking for their next investment, the Chiswick property supply crisis just might be starting to ease, as the number of new properties coming onto the market in Chiswick has increased.

 

For example, last month W4 saw 203 new properties coming on to the market, not bad when you consider in the last year the figure has been as low as the 110’s. With the average Chiswick property value hitting a record high, reaching almost £1,104,200 according to my research, this shortage of properties on the market over the last two years has contributed to this ‘fuller’ average property figure, but there is a glimmer of hope that the Chiswick’s supply crisis may be starting to ease.

 

As I write this article, 5.4% of Chiswick properties are up for sale. In terms of actual chimney pots, that equates to 885 properties on the market in Chiswick (within 1 miles of the centre of Chiswick) – which, when compared to only a year ago when that figure stood at 673, is a serious increase in the number of properties available to buy. Split down into the type of property, it makes even more fascinating reading…

  • Detached Properties in Chiswick – 56 on the market a year ago compared to 30 on the market now – a decrease of 46%
  • Semi Detached Properties in Chiswick – 55 on the market a year ago compared to 75 on the market now – an increase of 36%
  • Terraced Properties in Chiswick – 91 on the market a year ago compared to 150 on the market now – an increase of 65%
  • Flats / Apartments Properties in Chiswick – 410 on the market a year ago compared to 551 on the market now – an increase of 34%

 

With realistically priced properties flying off the shelves and this increase in new properties (especially semis and terraces), this is evidence of strength in the Chiswick housing market that many didn’t expect. Many believed that the Chiswick property market wasn’t going to be strong enough post Brexit – as what was a sellers’ market before the Brexit vote and Buyers’ market in the early months after it, may now be somewhere in between and the market might just be coming back into balance.

 

However, all this will mean property values won’t continue to grow at the same extent they have been over the last 12 to 18 months, and in some months (especially on the run up to Christmas and early in the New Year), values might dip slightly. This won’t be down to Brexit but a re-balancing of the Chiswick Property Market – which is good news for everyone.

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Private Renting set to grow by 2,400 Chiswick households by 2025

I was having a most interesting chat the other day with a Chiswick landlord in Rhythm & Brews Cafe over a warm beverage looking at some properties. As I am sure you are aware, I am always happy to cast my eye over any potential buy to let purchase in Chiswick, be that you emailing me a Rightmove link, a brochure in the post or even treading the carpet and seeing it together. I don’t charge for that, and you don’t even need to be a client of mine. We got talking about the Chiswick Property Market and this landlord brought up the subject of a report he had read from the Royal Institution of Chartered Surveyors (RICS) and PricewaterhouseCoopers (PwC) that stated almost 1.8m new rental homes are needed by 2025 to keep up with current demand from tenants. He wanted to know what this meant for Chiswick.

Well my blog reading friends, some commentators said last Winter that buy to let was about to die, what with the new stamp duty changes and how mortgage tax relief will be calculated. Others even said 500,000 rental properties would flood the market nationally in the 12 months after the new Stamp Duty rules came into force on the 1st April 2016 as landlords left the rental market. Well, all I can say is, I wish all the landlords of those half a million properties would hurry up and put them on the market – because I have plenty of other potential landlords wanting to buy them!

Back to the matter in hand.. if the RICS and PwC are indeed correct, what does this mean for Chiswick? The fact is, as a country, we are facing a precarious rental shortage and need to get Chiswick building in a way that benefits a cross-section of Chiswick society, not just the fortunate few. I call on the Prime Minister to drop the higher stamp duty tax on buy to let purchases to ease the pressure on the rental market.

Of the 19,700 households in Chiswick, currently 12,500 tenants live in 5,600 private rented properties. If we apportion those 1.8m households equally around the Country, that means in nine years’ time, the number of rental properties in Chiswick needs to rise by 2,400 (i.e. 42.8%) .. taking the total number of rented properties in the city to 8,000.

That means Chiswick landlords need to buy around 300 properties a year between now and 2025 to meet that demand – because according to my calculations, an additional 5,400 people will want to live in all those ‘additional’ Chiswick rental properties – so why is the government penalising landlords?

Thankfully the new housing minister Gavin Barwell detached Teresa May’s new administration from the Cameron/Osborne laser-like focus of just home ownership to solve our housing issues, saying “we need to build more homes for every single type of person needing a home and not focus on one single tenure”. The private rented sector became a stooge under David Cameron’s watch and still, with increasingly unaffordable Chiswick house prices, the majority of new Chiswick households will be relying on the rental sector in the future to house them. I can only say Westminster must put in place the measures that will allow the rental sector to flourish. Any restrictions on the supply of rental property will push up rents (bad news for tenants), thus side-lining those members of Chiswick society who are already struggling. Let’s hope this new Government continues to see the contribution landlords give to the country as a whole.

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