Local property market information for the serious investor

Month: April 2018

Edgware Property Market – Which Houses are Actually Selling?

Beast from the East, Russia, Facebook, Brexit, Trump, House prices up, House prices down … the Press is full of column inches on Brit’s favourite subjects of politics, scandal, weather and not forgetting (and I appreciate the irony of this!) the property market. As an agent belonging a national group of letting and estate agents, talking to my fellow property professionals from around the UK, the one thing that is immediately apparent is the UK does not have one property market. It is a hodgepodge patchwork (almost like a fly’s eye) of lots of small property markets all performing in different ways.

… And that made me think … is there just one Edgware Property Market or many?

I like to keep an eye on the property market in Edgware on a daily basis because it enables me to give the best advice and opinion on what (or not) to buy in Edgware, be that a buy-to-let property for a Edgware landlord or an owner occupier house for a home owner.  So, I thought, how could I scientifically split the Edgware housing market into segments, so I could see which part of the market was performing the best and the worst.

I decided the best way was to split the Edgware property market into four equal size price bands (into terms of households for sale). Each price band would have around 25% of the property in Edgware, from the lowest in value (the Lowest Quartile or 25%) all the way through to the highest 25% in terms of value, the Upper Quartile.  Looking at the market, I have calculated that these are the price bands in Edgware are as follows:

  • Lowest Quartile (lowest 25% in terms of value) … Up to £400,000
  • Lower/Middle Quartile (25% to 50% Quartile in terms of value) … £400,000 to £550,000
  • Middle/Upper Quartile (50% to 75% Quartile in terms of value) … £550,000 to £700,000
  • Upper Quartile (highest 25% in terms of value) … £700,000 Upwards

So, having split the Edgware Property Market approximately into four equal sizes, the results in terms what price band has sold (subject to contract or stc) the most is quite enlightening –

Edgware  Available Sold STC % Sold
Up to £400,000 63 29 31.5%
£400,000 to £550,000 47 34 42.0%
£550,000 to £700,000 55 21 27.6%
£700,000 Upwards 48 20 29.4%

 

The best performing price range in Edgware is the middle market. As I would expect, the upper half (the top 50%) is finding things toughest. Interestingly for Edgware landlords, the lower market isn’t selling much more, so maybe there could be some bargains out there for buy to let investment? Even though the number of first time buyers did increase in 2017, it was from a low base and the vast majority of 20 something’s cannot buy, so need a roof over their head (hence the need to rent somewhere).

It is a fact that British (and Edgware’s) housing markets have ridden the storms of Oil crisis in the 1970’s, the 1980’s depression, Black Monday in the 1990’s, and latterly the Credit Crunch together with the various house price crashes of 1973, 1987 and 2008. No matter what happens to us Brexit or anything else … unless the Government starts to build hundreds of thousands extra houses each year, demand will always outstrip supply … so maybe a time for Edgware landlord investors to bag a bargain?

Want to know where those Edgware buy to let bargains are?  Follow my Edgware Property Blog or drop me an email because irrespective of which agent you use, myself or any of the other excellent agents in Edgware, many local landlords ask me my thoughts, opinion and advice on what (and not) to buy locally … and I wouldn’t want you to miss out on those thoughts … would you?

If you are a landlord or thinking of becoming one for the first time, and you want to read more articles like this about the Edgware Property Market together with regular postings on what I consider the best buy to let deals in Edgware, out of the many of properties on the market, irrespective of which agent is selling it, then feel free to get in touch! Email me at Steve@benjaminstevens.co.uk

If you are in the area feel free to pop into the office we are based at 194 Station Road Edgware Middlesex HA8 7AT– the kettle is always on.

Don’t forget to visit the links below to view back dated deals and Edgware Property News.

Blog – http://www.benjaminstevens.co.uk/edgware-property-blog

Facebook – https://www.facebook.com/BenjaminStevensEstateAgents

Twitter – https://twitter.com/BenjamStevensEA

Website – http://www.benjaminstevens.co.uk

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8% More Edgware Home Owners Wanting to Move Than 12 Months Ago

As I have mentioned a number times in my local property market blog, with not enough new-build properties being built in Edgware and the surrounding area to keep up with demand for homes to live in (be that tenants or homebuyers), it’s good to know more Edgware home sellers are putting their properties on to the market than a year ago.

At the start of 2007 there were 572 properties for sale in Edgware but by June 2008, when the credit crunch was really beginning to bite, that number had risen to 826 properties on the market at a time when demand was at an all-time low, thus creating an imbalance in the local property market.

Basic economics dictates that if there is too much supply of something and demand is poor (which it was in the Credit Crunch years of 2008/9) … prices will drop. In fact, house prices dropped between 15% and 20% depending on the type of Edgware property between the end of 2007 and Spring 2009.

However, over the last five years, we have seen a steady decrease in supply of properties coming onto the market for sale and steady demand, meaning Edgware property prices have remained robust.  A stable housing market is one of the foundations of a successful British economy, as it’s all about getting the healthy balance of buyer demand with a good supply of properties. Nevertheless, if you had asked me a couple of years ago, I would have said we were beginning to see there was in fact NOT enough properties coming on to the market for sale … meaning in certain sectors of the Edgware property market, house prices were overheating because of this lack of supply.

So, it is pleasing to note, looking at the recent numbers …

There are 8% more properties for sale in Edgware today than a year ago

There were 357 properties for sale 12 months ago, and today that stands at 385. It doesn’t sound a lot, yet this is a small step in the right direction to a more stable property market.

Even better news, since the Chancellor announced the stamp duty rule changes for first time buyers (FTB), my fellow agents in Edgware say that the number of FTB’s registering on the majority of agent’s books has increased year on year. That has still to follow through into more FTB’s buying their first home, however, with the heightened levels of confidence being demonstrated by both Edgware house sellers and potential house buyers, I do foresee the Edgware Property Market will show steady yet sustained improvement during the first half of 2018.

What does this mean for Edgware landlords or those considering dipping their toe into the buy to let market for the first time? Landlords will need to keep improving their properties to ensure they get the best tenants. It is true that demand amongst FTB’s is increasing, albeit from a low base. Even with the new landlord tax rules, buy to let in Edgware still looks a good investment, providing Edgware landlords with a good income at a time of low interest rates and a roller coaster stock market.

If you are thinking of investing in bricks and mortar in Edgware, it is important to do things correctly as making money won’t be as easy as it has been over the last twenty years.  With a greater number of properties on the market .. comes greater choice. Don’t buy the first thing you see, buy with your head as well as your heart … and don’t forget the first rule of Buy To Let Investment …..

I will tell you that 1st rule in a couple of weeks!

If you are a landlord or thinking of becoming one for the first time, and you want to read more articles like this about the Edgware Property Market together with regular postings on what I consider the best buy to let deals in Edgware, out of the many of properties on the market, irrespective of which agent is selling it, then feel free to get in touch! Email me at Steve@benjaminstevens.co.uk

If you are in the area feel free to pop into the office we are based at 194 Station Road Edgware Middlesex HA8 7AT– the kettle is always on.

Don’t forget to visit the links below to view back dated deals and Edgware Property News.

Blog – http://www.benjaminstevens.co.uk/edgware-property-blog

Facebook – https://www.facebook.com/BenjaminStevensEstateAgents

Twitter – https://twitter.com/BenjamStevensEA

Website – http://www.benjaminstevens.co.uk

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Edgware Property Market Worth More Than Land Securities Group

The value of all the homes in Edgware (HA8 to be precise) has risen by more than 287% in the past two decades, to £7.999bn, meaning its worth more than the stock listed company Land Securities Group, which is worth £7.334bn.

Those Edgware homeowners and Buy-to-Let landlords who bought their homes twenty or more years ago have come out on top, adding thousands and thousands of pounds to the value of their own Edgware homes as the younger generation in Edgware continue to be priced out of the market.  This is even more remarkable because, in those twenty years, we had the years of 2008 and 2009 following the global financial crisis, where we saw a short term drop in Edgware house prices of between 15% and 20% (depending on the type of property). And although there have been a number of consecutive years of growth in property values recently in Edgware it hasn’t been anywhere near the levels seen in the early 2000’s.

Twenty years ago, the total value of Edgware property was worth £2.062bn. Over those twenty years, total property values have increased by £5.937bn, meaning today, the total value of all the properties in Edgware is worth £7.999bn. Even more remarkable, when you consider the FTSE100 has only risen by 40.84% in the same time frame. Also, when I compared it with inflation, i.e. the UK Retail Price Index, inflation had risen by 72.2% during the same twenty years.

So, what does this all mean for Edgware?  Well as we enter the unchartered waters of 2018 and beyond, even though property values are already declining in certain parts of the previously over cooked central London property market, the outlook in Edgware remains relatively good as over the last five years, the local property market has been a lot more sensible than central London’s.

Edgware house values will remain resilient for several reasons. Firstly, demand for rental property remains strong with persistent immigration and population growth.  Secondly, with 0.25% interest rates, borrowing has never been so cheap and finally, the simple lack of new house building in Edgware. Not even keeping up with current demand, let alone eating into years and years of under investment mean only one thing – yes it might be a bumpy ride over the next 12 to 24 months but, in the medium term, property ownership and property investment in Edgware has and always will, out ride out the storm.

In the coming weeks, I will look in greater detail at my thoughts for the 2018 Edgware Property Market. As always, all my articles can be found at the Edgware Property Market Blog

If you are a landlord or thinking of becoming one for the first time, and you want to read more articles like this about the Edgware Property Market together with regular postings on what I consider the best buy to let deals in Edgware, out of the many of properties on the market, irrespective of which agent is selling it, then feel free to get in touch! Email me at Steve@benjaminstevens.co.uk

If you are in the area feel free to pop into the office we are based at 194 Station Road Edgware Middlesex HA8 7AT– the kettle is always on.

Don’t forget to visit the links below to view back dated deals and Edgware Property News.

Blog – http://www.benjaminstevens.co.uk/edgware-property-blog

Facebook – https://www.facebook.com/BenjaminStevensEstateAgents

Twitter – https://twitter.com/BenjamStevensEA

Website – http://www.benjaminstevens.co.uk

Continue Reading