RECENT NEWS OF yet another drop in the national average house price figures and claims that prices may well drop by a further 10% have the economic doom-mongers rubbing their hands with joy.

‘Don’t buy now, you could save thousands’ is the reported advice.

And this may well be useful guidance for those living in many areas of the United Kingdom; however it could not be further from the case in the prime areas of North West London in which Parkheath specialize. As with many things, one prescription doesn’t suit all.

If you want expert advice, surely you talk to an expert in the specific area you want to know about. You wouldn’t consult an orthopaedic surgeon if you had a problem with your kidneys. So national figures and predictions should also be taken as such. You need to look much closer to home for useful advice on the area you want to live in.

Parkheath would advise you that the property market in Belsize Park, South Hampstead and West Hampstead is busier than ever. An increase in the number of properties coming to the market has been outstripped by an even greater number of buyers registering with our offices. These buyers are more often than not in fantastic buying positions. With large deposits and low ‘Loan to Value’ mortgages or even entirely cash purchasers, issues with the constricted finance market are largely overcome. Investors looking for greater returns than those given by the banks or stock market are also underpinning the market.

As a result, we are busier than ever. We are seeing prices at 15% higher than the ‘peak’ of 2007. On most sales, we are receiving multiple bids as savvy buyers see through the negativity portrayed by the media. So, if you are unsure about the market, swayed by stories you have read, please don’t be. If you wait for five years to save the 10%, as many ‘experts’ are quoting, I think it likely that the property you wish to purchase in Parkheath’s prime areas will be 30% more expensive than it is today.

Tom Gladwin
Managing Director, Parkheath

BUYING OR SELLING a home can be a much simpler process if you follow certain key 'rules'. Avoid any potential pitfalls by taking a moment to read our recommended tips if you are thinking of buying or selling a property in the current market.

BUYING

Be the best buyer you can                                                 It's a competitive market, so line up your finances well in advance, and aim to be flexible with completion dates.

Know your agents                                                              Stay in touch so they remember you and make you their first call when a new property comes to market.

 Know your market                                                              Check the internet to see what has sold and what hasn’t sold, so that you can make informed decisions.

 Prepare your team                                                        Make sure that your advisory team is ready: a solicitor, a broker for mortgage advice, and a local surveyor

Buy as soon as you can                                                   The market in prime London areas is bucking the national trend and increasing rapidly. We believe that the recent predictions of a 30% rise in the next 5 years are conservative, but on these figures if it takes you a year to find a property worth £750,000, it will actually cost you close to £800,000.

SELLING

Choose the right agent                                                       Consider who will market your property the best, and check out the agent's sales track record in your area

First impressions count                                                       De-clutter, clean the windows and fix minor flaws - make your home look like it has been well maintained

 Help the agent to do their job                                           Keep the house tidy, try to be flexible with viewing times and let the agent deal with buyer's concerns if any

Get feedback                                                                     Make sure you choose an agent who gives you feedback post-viewing, and act on it where you can

This is an edited version of an article by Tom Gladwin, Managing Director, Parkheath in the June 2011 issue of Fabric magazine. For the full article, click here www.fabricproperty.com/fabric-magazine

OPENING IN SEPTEMBER, the arrival of the new French school in Holmes Road NW5 on the site of the former Westminster Kingsway College (see below), has brought a rush of enquiries for sales and rental properties in Belsize Park, as French families seek homes in a desirable residential area within easy reach of the new school.

Contact us now on 020 7431 1234 if you have a property to rent or sell, or drop in and see us in our office at 208 Haverstock Hill NW3

DUE TO THE SUCCESS and growth of our professional Property Management department we are expanding and dedicating an entire office to deal with landlord demand for our property management services.

The new office will be situated at 155 Haverstock Hill NW3, and will allow us to increase the level of service we offer to our clients. More details can be found on the Parkheath website www.parkheath.com

THE MONETARY POLICY COMMITTEE (MPC) has, as expected, kept interest rates at 0.5% for the 27th month in a row, citing that the inflationary factors in the market cannot be influenced and are of a temporary nature. With inflation expected to increase to over 5% in the short term the Bank will no doubt come under increasing pressure to increase interest rates during the remainder of the year, with opinion still split on when rates will increase.

Despite the apparent allure of supermarket bargains, a typical basket of fresh produce – including bread, meat and vegetables – now costs 4.9% more than it did in 2010. And it is rising at its fastest rate in almost two years. Scottish Power also signalled this week what is expected to the first in a fresh wave of domestic-energy price rises as it announced that its average gas tariff would increase by 19% from august, with electricity also up 10%.

The rate futures market is not pricing in an increase until March/April 2012 – the British Chamber of Commerce expects interest rates to start rising from August and to be at 2.75% by the end of 2012. On the other hand, the Ernst & Young Item Club still take the view that the bank rate could remain at the current 0.5% level, certainly until the end of 2011 and possibly throughout 2012 due to the overall weakness of the UK economy.

This all has led to fixed rate mortgages coming down, and competitive pricing across the entire market.

For professional mortgate advice from independent experts contact us now on 020 7317 7311

Colin Payne                                                       CHAPELGATE ASSOCIATES