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The north-west London property market

The north-west London property market

A £2.5bn regeneration scheme around Wembley Stadium that will see up to 4,850 new homes built promises to give the already buoyant north-west London property market a further boost. 

Residential property values in Wembley have a current average asking price of around £345,000 but just one Tube stop can make a big difference to values.

It is an eight-minute Tube ride between Wembley Park and Finchley Road on the Metropolitan line. But the average house price differs by £1m.

At Finchley Road, house prices average £1.4m, and at Wembley Park they are £400,000 following a 10% rise in values over the past 18 months.

The weaker Euro and low interest rates have provided the ingredients for foreign buyers to invest in a safer haven, while UK-based buyers view property in north-west London as desirable because of the area’s good schools, excellent transport links and enviable amount of green space.

Demand for rental homes and properties on the market in north-west London continues to outstrip their supply, which means rents and sales prices should continue to rise.

However, the introduction of a 3% stamp duty surcharge for buy-to-let investors on 1 April, coupled with uncertainty about the outcome of the EU referendum in June, saw property values dip slightly in April following a rush to complete transactions in the weeks running up to the start of the month.

But this situation is not likely to be a long-term trend.

Martin Ellis, Halifax’s housing economist, says: “Current market conditions remain very tight as the severe imbalance between supply and demand persists. This situation, combined with low interest rates and rising employment and real earnings, should continue to push house prices up over the coming months.”

And a spokesman for north-west London-based estate and letting agent Paramount Properties adds: ““Price growth in the rental and sales markets is likely to remain robust, as ultra-competitive mortgage rates encourage buyers to take out larger home loans.

“Meanwhile, the recent stalling of the recovery in housebuilding, as well as high moving costs and elevated house price expectations among homeowners, suggest that supply will remain scarce.

“Brexit fears might subdue prime London property prices, but previous bouts of political uncertainty have seldom depressed the whole market.”

 

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