Estate Agents in Southall see better times ahead
The price of homes for sale in Southall dropped slightly earlier in the year, but there are signs the market is turning
There has been a well-documented slump in the housing market throughout 2018 and Southall, like much of Greater London, hasn’t escaped unscathed. The most-up-to-date land registry figures show there were only 50,308 property sales in the whole of the UK in April 2018, down almost 20% on the previous year. If we focus on London alone, there were only 5,272 sales in April, down from 7,120 in 2017, that’s an incredible 26% fewer sales.
Any Estate Agent in Southall can tell you this is a market trend we haven’t escaped. Over the past 12 months, prices for both houses and flats on the market have fallen by an average of 3.59%, that’s around £14,350.
It’s been clear for any Southall-based estate agent this wasn’t your average market dip and there have been a number of factors at play that have culminated in suppressing the property market. The first being the uncertainty around the Brexit negotiations and what kind of deal the UK will have with the rest of the EU come March 2019. The general confusion and perceived lack of planning by the UK Government have made London a less appealing investment for foreign and UK-based investors. These investment ‘jitters’ can have a cooling effect on the surrounding markets of Greater London and the broader South East.
Changes to stamp duty and tax implications for buy-to-let owners, while taking place some time ago, continue to dampen the mood among this strong sector of the market, particularly in Southall. Buy-to-let investors are looking to put their money in other commercial ventures, which may be great news for first-time buyers looking for a bargain but not so good for sellers missing out on these potentially more wealthier buyers.
Another reason for the slight dip could be down to the market simply catching its breath before another rise to come. We’ve seen prices rise in Southall by an average of 38% over the last 5 years and with completion of Crossrail imminent and a number of major developments underway across Ealing, Southall remains a very desirable place to live and invest. So, much like stock prices, property prices never go up in a straight line indefinitely, and this could simply be a slight pause before the market gears up for new highs.
Southall property on the rise?
While it may be premature to say we’ve seen prices at the lowest, it does seem like the drop in prices is slowing, with some property types already posting price increases in the last 3-6 months. While prices are down 3.59% in Southall over the last 12 months as stated above, in the last 6 months, prices have only fallen by 0.87%, in the last 3 months that number decreases further to 0.70%. If we break down the numbers further, we find that in the last 3 months, detached and terraced properties actually rose in value slightly, 0.12% and 0.82%, respectively. So while these numbers are no way indicative that we have bucked the downward trend, they are encouraging as we approach the Autumn months, which tends to see renewed activity in the property market.
SAB Estates: The Southall Estate Agent View
The summer months tend to be a little slower as people prioritise going away and the school holidays over buying or selling property, but we envisage a strong end to the year in Southall and the surrounding areas of Greenford, Northolt, Hayes and West Drayton as people work towards completing home moves before the traditional deadline of Christmas. The market indicators are promising and at SAB Estates we have seen an uptick in enquiries from buyers, sellers as well as those looking to rent in the area.
If you would like to speak to someone about the market in Southall, or you are looking to sell your property, get in touch today on 020 8575 2929.
That’s potentially great news for first-time buyers and investors, but not so good if you’re looking to sell.