SALE MARKET ACTIVITY
Like in most of London in 2022, Barnet borough saw a rapid house price growth during the first six months of 2022 with a peak in the summer. Property price growth and buying activity began to slow in October. The impact of the cost of living pressures, rising mortgage rates and the end of the Stamp Duty Tax discount began to take effect on households’ finances and demand. Overall, average selling prices in Barnet in October 2022 borough rose by 5.8% since October 2021. Average selling prices in London NW11, Golders Green and Hampstead Garden Suburb, rose by 10% between 2021 and 2022. With base rates now at an unexpected high of 3.5% and likely to rise more to fight inflation, the latest forecasts in 2023 suggest there will only be a partial reversal in rises seen over the past two years. Vendors should still be able to sell during this first 2023 semester for more than in 2021. For example, smaller-sized properties, properties with a good energy performance rating or with an electric car charging point are very much in demand at the moment. A good broadband internet connection is also a requested criteria by buyers and tenants.
How many properties currently for sale
The number of properties for sale over the first months of 2023 will affect how much selling prices will evolve. Supply was at its lowest in September 2022. In comparison, January 2023 sees 36% more houses and 8% more flats listed on the market. More properties on the market mean more choices for buyers and less negotiation power for vendors.
PROPERTY SALE TRANSACTIONS
3 months ago
The end of the stamp duty tax holiday and the interest rate hike caused property sale transactions to drop in October, as most buyers tried to complete before the deadline. Buyer activity remains below average, partly because of the season. Many buyers are now waiting for mortgage rates to stabilise, hoping that selling prices will decrease in the coming months. First-time buyers and buyers replacing their main residence can still benefit from a lower stamp duty tax in 2023, 0% up to £425,000 and 5% for above up to £925,000. First-time buyers’ relief only applies to properties that cost £625,000 or less.
PROPERTY SELLING TIMES
3 months ago
Average selling times over 2021 were 174 days in Golders Green and Hampstead Garden Suburb and properties sold in only 158 days in October 2021. Selling times are expected to lengthen again during the first three months of 2023.
PROPERTY CURRENT AVERAGE ASKING PRICES
We can note that property asking prices in Golders Green and Hampstead Garden Suburb have generally stagnated or gone up during the last 12 months and started to decrease after November. Only semi-detached and 4-bedroom properties have seen their asking prices increase in January 2023. It is likely property owners will have to adjust their price expectations as there is a current larger supply. A larger supply means there is more competition between vendors to attract buyers. Buyers have more alternatives if their offers are refused.
PROPERTY AVERAGE SELLING PRICES
(3 months ago)
The percentages shown above compare one month’s data against another month’s data and don’t reflect a yearly trend. October property selling prices in London NW11 are based on a smaller number of sale transactions and most properties sold were simply smaller or in a lower-price range. Even in this current market atmosphere, property prices in Hampstead Garden Suburb and Golders Green are not going to crash as claimed by many media. It will also depend on if the supply stays high. The Bank of England is expected to increase its base interest rate again in February and mortgage brokers believe that mortgage rates will plateau over the summer before decreasing by Q4.
PROPERTY CURRENT AVERAGE ASKING RENTS
|Median asking rent
|vs. Nov 2022
|vs. Nov 2022
Median asking rent
2022 has known a record low supply of properties to let in London NW11, pushing rents up by up to 25%.
Supply has grown by 10% over the past 3 months but there are still approximately 50% less properties available to rent than in Summer 2021. The median asking rent in Golders Green and Hampstead Garden Suburb has decreased since November 2022 by 3.9%. The median rent for 3-bedrooms properties is the only one to have continued to grow. Demand is still very high but limited by affordability. If more properties to let come onto the market over the next weeks, rents will continue to slowly decrease and return to more affordable levels.
Sources: Home.co.uk, Land Registry
- Belsize Park
- West Hampstead
- Hampstead Garden Suburb
- East Finchley
- And many more neighbourhoods