A number of landlords, first time buyers and investors have
approached me recently, asking about the Teddington property market. With all
these headlines of massive increases in property values in the UK, should we be
worried we are about to have a price crash? We are in the early stages but the
economy is now actually looking a lot healthier and there are signs we are
seeing an actual recovery after several false starts.
I am of the opinion that over the last few years, whilst
mortgages have been a little more difficult to obtain than the last decade of
the 2000’s, this lack of mortgages has produced some pent up demand for
property. Now we appear to be on the other side of the financial crisis and the
banks are more willing to lend which is why sales, prices and first-time buyer
numbers have improved so rapidly. It has been like opening a shaken can of
fizzy pop! You get the initial fizz of activity, and then it flattens. What
we're seeing is a relatively normal market correction, not a quick transition
from a recession to a boom.
Property values in Teddington have risen, on average, by 14.2
% in the last 12 months. When I look at the London as
a whole, prices have risen by 9.2% and nationally by around 8.7%. Compared to
the boom years of 1998 to 2003, when property values increased by 23% in 1998,
12% in 1999, 20.6% in 2000, 11.9% in 2001 11.3% in 2002 and 13.4% in 2003 in
Teddington, I cannot see why some are concerned about an unsustainable price
boom. I believe house prices are rising off a low base and talk of a
housing bubble in relation to the national market is overdone. We are seeing
continued exceptional property price growth in central London
combined with modest gains across other regions and, creating a picture of a
broadening market recovery, I expect prices to continue to rise (steadily) in
the short term.
Speaking to others in Teddington, the issue isn't house price inflation, but a lack of realistically priced properties coming
onto the market for sale; a lack of supply. In the Spring months of 2014, on
average 107 properties per month were coming on to the market for sale in
Teddington, in the last few months of 2014, only 68 properties per month came
on to the market. So should you be buying a property in Teddington? Now is
a good time to buy, provided you accept prices may fall again in a few years.
It depends on how long you plan to own the property (whether
as a home or investment), whether it personally suits you and most importantly
whether you can afford it. Teddington first time buyers preparing to
take the plunge should bear these factors in mind. The biggest issue must be
that buyers ensure they can take the hit of future interest rate rises and therefore,
I ask the first time buyers of Teddington to make sure you'd be happy in your new
home, because you could be stuck there in five years' time.
Landlords tend to buy for the long term, so these
short term movements don’t tend to affect them as much. The lack of supply in
Teddington of new properties coming onto the market indicates people wanting to
buy have to move quickly, and don’t have the luxury of a few weeks to decide to
view the property. However, my findings show that first time buyers and
landlords in Teddington aren't prepared to pay over the odds for a property to
secure it. Maybe, just maybe, the memory of the 2008 price crash has given a
dose of realism to the optimistic Teddington property market?
I am a letting agent first and foremost and pride myself on looking after my landlords homes as if they were my own. If I wouldn't personally have a tenant in one of my properties then I wouldn't put them in yours. I also source properties though and so if you are looking for your next buy to let investment and don't have the time, or are unsure of what you should be buying to make the figures stack up then I can help. Simply drop me an email at rebecca@rebeccasmithpropertyservices.co.uk and I will respond the same day.
Now, here's my picture of the day!
Rebecca Smith
