The Wider Context

9 September 2015, words by Kirsty Lemond

Ealing is well placed to attract investment from traditional and institutional investors.

 

The outlook for Ealing needs to be considered in the context of the wider prime London market.

The sales market

In the run up to the General Election the prime housing market stalled, following the changes in Stamp Duty and the threat of a mansion tax.

Since May, some of the deferred demand from the pre-election period has begun to flow back into the prime London housing market, but the new higher tax rates are being keenly felt by buyers above £1m. This has restricted any significant boost to prices and transaction numbers.

In Ealing, average values are lower than other parts of prime London so the extra Stamp Duty burden is not felt as keenly. This has lead to a slight outperformance in growth so far this year; though on the flip side the mortgage market review will continue to restrict the amount people can borrow and therefore limit house price growth.

Across all prime London, we expect the combination of the higher taxes, increased mortgage regulation and the high levels of available stock built up during the pre-election period will mean that the market remains relatively price sensitive over the rest of 2015 and into 2016.

The rental market

Across prime London, we expect the strengthening London economy and continued expansion of sectors such as technology and telecommunications to underpin demand for prime rental property over the medium term.

In Ealing, the number of private renters is already high and the area is well placed to attract more investment from both traditional and institutional investors.

A potential risk to the sector is if a high level of new build stock is brought to the market simultaneously then this may lead to rents coming under pressure.

 

 
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