Chiswick Estate Agent Issues Buy Call To Investors
Andrew Nunn believes that current yields are too attractive to miss
Andrew Nunn reports accute shortage of properties looking for tenants in W4
The lettings team at leading independent Chiswick estate agents, Andrew Nunn and Associates, believes that now is the time for investors to be looking to acquire in the W4 area.
Mateo Asminian and Katherine McDowall consider that the market is emerging from a challenging period with capital values holding up well and rents on the increase.
They say, "Times like these make us firm believers that, no matter how big or dark the cloud, there is always a silver lining…
"Over the last few years, London landlords have faced a number of challenges in the property market, from Brexit and increased tax changes to the pandemic causing a mass exodus of space-seeking tenants from the city and rents taking a hit.
"The past few months, however, have seen levels of demand skyrocket as offices have re-opened and the increasing ease of travel has allowed a release of pent-up demand – and this may only be the beginning of this trend."
Early indications for the year so far appear to be encouraging with Zoopla reporting that UK rental demand was up 76% in January compared with similar periods between 2018-2021.
This is put down to a lack of stock which is particularly acute in Chiswick. The Andrew Nunn team say there are currently only 100 properties seeking a new tenant in the W4 post code area compared to the more normal levels of 450.
Zoopla have reported London rents increasing by 10.3% year-on-year and reportedly the rises in W4 have been even higher.
This has boosted yields and Andrew Nunn currently have a number of properties listed which they believe should appeal to investors. A flat at St Catherine's Court is on the market for £550,000 and would currently be rented out for £1900 per month which would bring a respectable gross return of 4% However, the estate agent believes that with some improvement work the property could be rented out for £2300 giving a yield of 5% not including the cost of the improvements.
Green Apartments on Chiswick High Road have a sales asking price of £685,000 which would give and investor a gross yield of 4.7% assuming monthly rental income of £2700.
A property on Church Path is being sold for £675,000 which on current estimated rent would yield 4.4%
A flat on Grange Road in Gunnersbury is being offered for £379,950 with a monthly rental income of £1250pcm giving a gross rental yield of 3.9%
These yields are calculated against current asking prices.
The sales market remains two tiered in the view of Andrew Nunn. They say demand for 3+ bedroom, family houses remains robust, withstanding the end of the Stamp Duty Holiday incentive and the more recent impact of rising interest rates, and many are selling at premium prices as a result of multiple bids.
The flat market, on the other hand, will need some patience in its recovery in their view. The strict travel restrictions and the Furlough scheme (and its conclusion) meant a large chunk of first-time buyers and pied-a-terre seekers have been opting against the first/next step on the property ladder. Given these buyers combined account for almost two thirds of flat sales across the board, it is no surprise that there are three times as many flats than houses on the market in W4, and their prices have seen a double digit decline average since the start of the pandemic.
Andrew Nunn reports that garden flats remain strong in demand and sturdy on price, but many of those without outside space depreciated back to their 2014/15 values at the height of the pandemic.
The estate agents says, "This market has shown some signs of improvement since the turn of the year. Buyer registrations for 1&2-bedroom flats are up some 7% year-on-year, and this growth will inevitably improve further in the short term – maybe as early as the second half of this year – as Covid’s impact wanes and we slowly but surely resume our ‘normal’ lives.
"The message is clear: investors, now is the time to buy. The contradicting trends of the lettings and sales markets specifically for flats (which comprise approximately 80% of all rental properties in W4) means yields are at their strongest since the credit crunch in 2008! Buy-to-let mortgages can currently be fixed for as little as 1.09% for 2 years and 1.64% for 5 years. This opportunity might never come around again…"
For further information you can contact Mateo Asminian on 020 8995 1500 or mateo@andrewnunnassociates.co.uk and Katherine McDowall on 020 8995 1600 or katherine@andrewnunnassociates.co.uk.
Like Reading Articles Like This? Help Us Produce More This site remains committed to providing local community news and public interest journalism. Articles such as the one above are integral to what we do. We aim to feature as much as possible on local societies, charities based in the area, fundraising efforts by residents, community-based initiatives and even helping people find missing pets. We've always done that and won't be changing, in fact we'd like to do more. However, the readership that these stories generates is often below that needed to cover the cost of producing them. Our financial resources are limited and the local media environment is intensely competitive so there is a constraint on what we can do. We are therefore asking our readers to consider offering financial support to these efforts. Any money given will help support community and public interest news and the expansion of our coverage in this area. A suggested monthly payment is £8 but we would be grateful for any amount for instance if you think this site offers the equivalent value of a subscription to a daily printed newspaper you may wish to consider £20 per month. If neither of these amounts is suitable for you then contact info@neighbournet.com and we can set up an alternative. All payments are made through a secure web site. One-off donations are also appreciated. Choose The Amount You Wish To Contribute. If you do support us in this way we'd be interested to hear what kind of articles you would like to see more of on the site – send your suggestions to the editor. For businesses we offer the chance to be a corporate sponsor of community content on the site. For £30 plus VAT per month you will be the designated sponsor of at least one article a month with your logo appearing if supplied. If there is a specific community group or initiative you'd like to support we can make sure your sponsorship is featured on related content for a one off payment of £50 plus VAT. All payments are made through a secure web site. |
March 12, 2020