THE SWELL IN PROPERTY DEMAND in prime North West London is continuing as investors look for ‘safe harbours’ to ride out the current financial storm.

In prime residential areas such as Belsize Park, South and West Hampstead we are seeing a rise in both sales and property prices despite the gloomy financial outlook.

The current volatility in the world’s stock markets and the ever present threat of Southern European Countries defaulting on their loans, combined with the impending Public Sector government cuts, has lead to a pretty bleak outlook for the nationwide property market.

However for us, the market could not be more different. In uncertain times large-scale investors often seek the safe harbours provided by gold and cash. For the private investor, property in Prime North West London  is increasingly seen as a ‘safe harbour’. With the cash rich getting little or no return on their money in the bank, property is still promising excellent, inflation proof, long term capital gain, with immediate returns from rising rental incomes.

This influx of new investors has once again increased the level of competition within a market where demand already outstrips supply. This has made other buyers more confident about the long-term sustainability of the local property market. People have become more comfortable with moving within the market. The result has been a reduction in stalemates, where buyers are waiting while sellers struggle to buy which has often meant chains of sales and purchases remained incomplete.

To conclude, we are looking at an exciting property market with more properties to sell, and more buyers keen to purchase. More transactions have been completed; more people are buying
property and more people want to buy property. Prime London is still promising a buoyant future.

TOM GLADWIN                                                                    Managing Director, Parkheath

New landlord Jane West advises on letting the experts sort out the boiler

We had a fantastic five years living in West Hampstead. Great cafes, great shops and superb transport links into town. But when the time came to start a family it was time to move on. We approached Parkheath because we knew they'd been in the area a long time and therefore would have the best local knowledge. Our two-bedroom flat went on the market and before we knew it we had a flow of viewings quickly followed by     a number of offers. But having got to this point in the process, our circumstances changed and unexpectedly we were able to both buy the house in Herts we were after AND keep the flat in West Hampstead. Switching  to Parkheath’s lettings team we were given constructive advice about how best to present the flat before putting it on the market, and then they very quickly matched us with ideal tenants. Having thought we could look after the property ourselves, six months and a broken-down boiler later, we realised that managing a property from  a distance was not as simple as we had thought. Maria, from Property Management, was a star and got the boiler and other bits and pieces sorted. They gave us, and continue to give us, peace of mind.                      Jane West

Belsize Park landlord David Murray on doing your sums before investing in property

Investing in a prime London residential area such as Belsize Park made sense. There’s always a degree of risk in any form of investment, but with property tending to double in value over 7-10 years and with an immediate income stream from rent (rule of thumb is    a return of 125% of the monthly mortgage payment),   it’s ultimately both a short-term and a long-term gain.
I have always gone to Parkheath to find good tenants. They are scrupulous in carrying out all the necessary checks, and they’re quick on changeovers, ensuring that void periods are kept to a minimum. But even with  a trusted agent on hand, any prospective landlord should give themselves a buffer by factoring in the financial implications of a property sitting empty for two months of the year. Being a landlord is a business, whether your portfolio is five flats or a hundred houses, so keep good records and make sure that tenancy agreements and notices are properly drawn up. If, as     I do, you work with an agent that you trust, take advantage of any property management expertise that they can offer.                                                                   David Murray

LEADING UK PROPERTY WEBSITE Rightmove has placed Parkheath 2nd out of 81 agents in the local area for winning instructions over the summer.

Reflecting our commitment to the highest level of service, the Rightmove figures underline Parkheath's success in taking properties to market. Homeowners in NW3 and NW6 who are looking to instruct an agency in the sale of their home should contact Parkheath now in NW3 on 020 7431 1234 and in NW6 on 020 7794 7111 or 020 7625 4567

THE ECONOMIC OUTLOOK has deteriorated recently with politicians finding it difficult to make decisive decisions in the eurozone.

Bank rate looks likely to remain at current levels for at least the next 12 months as growth continues to stagnate, but the troubles in Southern Europe are resulting in LIBOR (London Interbank Offered Rate - the rate used when banks lend to each other) increasing, albeit slowly, resulting in banks hoarding more capital and liquidity reducing.

This could well have an impact on mortgage rates with banks possibly looking to increase the margins they charge, but the good news is that tracker and fixed rates are still at historically low levels, with fixed rates in particular continuing to fall so there are some good deals to be had. It’s also worth bearing in mind innovative ideas, such as tracker-to-fixed-rate products which are becoming increasingly popular. Although the cheapest rates available require deposits of 40%, higher loan-to-value products at 85 and 90% borrowing are becoming cheaper and the market more competitive, so if you have a lower deposit, this can still work for you.

The buy-to-let market is gathering pace, with new lenders entering the market ensuring that there are some excellent deals, with loan-to-values available up to 80%.

There is a great deal of positive news, but given the growing uncertainty, speaking to an independent mortgage consultant should be considered a priority so do please get in contact with us now on 020 7449 6703