|Ealing Property Market Returns to Victorian Values|
Demand for century old homes holding up better than brand new units
The latest property sales information for the Ealing suggests that buyers are shunning newly built luxury apartments in the centre of town and sticking with old style Victorian and Edwardian homes.
The average price in the W5 post code area has taken a tumble, down by 12.8% in the first quarter compared to the peaks seen last year. A closer look shows that the fall in the overall average can be attributed to a drop in the price and turnover of flats in the central Ealing area particularly newly completed ones. Sales of flats are down by 70% compared with the same period last year. Although there may be more transactions to be reported which will reduce the extent of the fall, the decline in sales is clearly dramatic.
Ray Upcraft a partner at independent local estate agent Russell Collins says, "It does seem that the traditional, in particular Victorian properties seem to be selling faster than the new builds.
"Also the buy to let market has pretty much ground to a halt since Brexit, April 1st last year and the extra 3% stamp duty/changes in tax rulings which really effects the new build market."
Terraced houses built of bricks continue to be popular and they have actually seen a rise in price so far this year both in W5 and the West Ealing area. With a lower proportion of new build properties the W13 area has seen prices rise to a new record high. The average in West Ealing (W13) is currently above the level in W5.
Ray adds, "There are too many new builds hitting the market at the same time and often when that happens, people buy the cheapest/best value ones, not the nicest with best views etc.
Despite the current political uncertainty there appears to be continued demand for larger properties in the area. A seven bedroom house in Hamilton Road sold for just under three million pounds and a large detached house on Montpelier Road which is currently divided into flats went for £2,775,000.
Simon Rubinsohn, RICS Chief Economist sees the lettings market as being stronger than the sales side. He said, "It is noticeable that the amount of new rental instructions coming through to agents is continuing to edge lower, which is not altogether surprising given the changing landscape for buy-to-let investors. One consequence of this is that rents are expected to continue rising not just in the near term but also further out and at a faster pace than house prices."
During March 2017 London was the worst performing region of the country according to the Land Registry with prices falling by 1.5% from the previous month to £471,742. Over the course of the last twelve months prices have risen by 1.5%.
For England as a whole prices are up by 4.4% in the year to March rising to an average of £232,530.
The number of completed house sales in London in January, the latest month for which figures are available, fell by 26.3% to 5,968 compared with 8,093 in January 2016.
Source: Land Registry
May 22, 2017