October 26, 2018
The Edgware housing market is a fascinating beast and has been particularly interesting since the Credit Crunch of 2008/9 with the subsequent property market crash. There is currently some talk of a ‘property bubble’ nationally as Brexit seems to be the ‘go-to’ excuse for every issue in the Country. Upon saying that, looking at both what we do as an agent, and chatting with my fellow property professionals in Edgware, the market has certainly changed for both buyers and sellers alike (be they Edgware buy to let landlords, Edgware first time buyers or Edgware owner occupiers looking to make the move up the Edgware property ladder).
Edgware house values are 0.3% lower than a year ago, and the rents Edgware tenants have to pay are 0.3% lower than a year ago
When we compare little old Edgware to the national picture, national property values have risen by 0.4% compared to last month and risen by 3.0% compared to a year ago, and this will surprise you even more, as nationally, property values are 19.8% higher than January 2015 (compared to 11.4% higher in the EU in the same time frame).
However, if we look further back…
Since 2006, Edgware house values are 86.3% higher, yet the rents Edgware tenants have had to pay for their Edgware rental property are 32.8% higher
…which sounds a lot, yet UK inflation in those 12 years has been 42%, meaning Edgware tenants are 9.2% better off in ‘real spending power terms’.
Looking at the graph, the rental changes have been much gentler than the roller coaster ride of property values. I particularly want to bring to your attention the dip in Edgware house values (in red) in the years of 2008 and 2009 … yet as Edgware property values started to rise after the summer of 2009, see how Edgware rents dipped 6/12 months later (the yellow bars)…. Fascinating!
So, we have a win for tenants and a win for the homeowners, as they are also happy due to the increase in the value of their Edgware property.
However, maybe an even more interesting point is for the long-term Edgware buy to let landlords. The performance of Edgware rental income vs Edgware house values has seen the resultant yields drop over time (if house prices rise quicker than rents – yields drop).
Whilst, it’s true Edgware landlords have benefited from decent capital growth over the last decade –with the new tax rules for landlords – now more than ever, it’s so important to maximise one’s yields to ensure the long term health of your Edgware buy to let portfolio. More and more I am sitting down with both Edgware landlords of mine and landlords of other agents who might not be trained in these skills – to carry out an MOT style check on their Edgware portfolio, to ensure your investment will meet your future needs of capital growth and income. If you don’t want to miss out on such a MOT check up, drop me a line – what have you got to lose? 30 minutes of time against peace of mind – the choice is yours.
If you are thinking of selling your Edgware home or 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.
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