|Ealing Property Prices Shrug Off Election Worries to Rise Higher|
New records set so far this this year despite 'mansion tax' concerns
The Ealing property market seems to have shrugged off pre-election jitters to remain strong so far this year.
According to the latest figures from the Land Registry, prices in the W5 post code area reached a new all-time high in the first quarter of this year. There were 159 sales in the area at an average price of £679,253 a rise of 16.9% compared with the same period last year.
Having reached a new peak at the end of 2014, prices in the W13 post code area fell marginally from the all-time high but are still 10% up over the last 12 months.
Unlike other parts of London, the possibility of the implementation of the 'mansion tax' seems to have little impact on sentiment with the top end of the market remaining reasonably active. The highest price property sold during the period was an eight bedroom house in Mount Park Crescent which changed hands for £2,515,000 having originally been marketed for £2,700,000. This is the twelfth highest price paid for a home in W5. In W13 the Old Rectory on St. Stephen's Road became the third most expensive property sold in the area costing its new owners £2,480,000.
The Royal Institution of Chartered Surveyors (RICS) UK Residential Market Survey reports that London house prices were back into positive territory in April, after seven months in decline, with short term predictions suggesting further rises.
28% more chartered surveyors saw prices rise in London in April, the first positive reading in the capital after seven negative months in the run up to the election. Price expectations over the next three months are also positive, with 11% more respondents expecting prices to rise further.
New instructions fell sharply with 36% more chartered surveyors seeing a decline, while the capital also saw an increase in buyer enquiries for the first time in a year as both these factors contributed to the pick-up in prices Activity levels over the last month decreased most sharply in London where 21% more respondents reported a fall rather than rise in newly agreed sales
52% more respondents expect prices to rise over the next twelve months in London and the predicted average percentage price rise for houses in the capital over each of the next five years is 5.4%.
Meanwhile, in the lettings sector, supply has been rising steadily in London for three years now but the growth in tenant demand is not far behind. As a result, 39% more chartered surveyors expect rents to rise over the next three months which is the highest reading since the first half of 2011.
Simon Rubinsohn, RICS Chief Economist, said: “It is conceivable that the decisive outcome to the election could encourage a pick-up in instructions to agents and ease some of the recent upward pressure on house prices but it is doubtful that this will be substantive enough to provide anything more than temporary relief. Alongside an increased flow of second hand stock, it is absolutely critical that new government focuses on measures to boost the flow of new build.’’
According to Land Registry figures London as a whole continued to see the highest price rises in the country in March rising by 11.3% to £462,799. This compares to a 5.3% increase for England and Wales which brought the average price up to £178,007. The peak was achieved in November 2007 when the average reached £181,049.
The number of properties sold in England and Wales for over £1 million decreased by 19 per cent to 851 from 1,049 a year earlier. Repossessions in England and Wales decreased by 45 per cent to 590 compared with 1,081 in January 2014
In a forthcoming edition of the Ealingtoday.co.uk newsletter there will be a complete listing of recent property sales in the area.
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May 14, 2015