In the current property market, the truth is that prices in West Hampstead and our surrounding areas are more stagnant than previous years, and in some places are even falling a little. This is a general statement, and in some areas we're actually seeing the opposite, but there's a positive takeaway here for people wanting to upsize.
That is: the gap to the next size up in property is getting smaller. For example, even if your property on the market for £600K sells for 5% less (20K), a £1.2m property will see a 40K reduction, so buyers who have been planning to upsize will see the benefit at the upper end.
Fortunately, mortgage rates are on their way down from the 6% range they reached following the mini-budget in September last year. In fact, HSBC recently released a 5-year fixed-rate mortgage priced at 3.99% with a 40% deposit.
This is the first time a mortgage of this type has been priced under 4% since that fateful announcement. Of course, a large deposit isn't realistic for everyone, but this is a good indication of where mortgage products are heading.
Chief executive of Propertymark Nathan Emerson recently said “Buyers are entering a less competitive market with competition dropping by over a third, which works well in their favour, but for sellers, house prices are still higher than this time last year, meaning they will see a comfortable gain when looking to move.”
And as mortgage advisor Elliot Nathan explains in this video, lenders will be feeling the pressure to bring in more business.
Our seasoned consultant Lionel also comments that smaller properties may find their market too as people are working from home less.
For buy-to-let investors, decreasing mortgage rates and increasing rents make the investment more attractive again. While it's true there have been changes to landlord tax deductions, many people don't realise there's still a long list of costs that can be deducted (you can find that list here). Yields currently hover around 4%, while the cost of your mortgage is covered by the rental income.
If you've been wanting find your next home but aren't sure about the timing to sell or buy - get in contact today. Our team is on the ground and can see what's really going on in each of our local areas.
Whether you're in West Hampstead, Belsize Park, Swiss Cottage, Maida Vale, Willesden, Queen's Park, Kensal Rise or any of the surrounding areas, we have detailed market information to share with you!