Property professional Jamie Lester discusses the Chiswick property market, post 2013 Budget. Is 2013 a good time to move out of London? What next for house prices? Is 2013 a good time to sell in Chiswick?

2. Contents
• About us
• The 2012 Budget -2013 market
• Is 2013 a good time to move out of London?
• House prices in Chiswick
• Market forecast

3. A little about us...

4. All eyes on London

5. London 2012
Overall 2012 was a stimulating year for the London
market, London fast became the most talked about
city of the year - hosting The Olympics and celebrating
the Jubilee (not to mention the masses of celebratory
street parties)! London maintained its cosmopolitan
image and retained the position of property capital of
the world in spite of the tax uncertainties that got in
the way.

6. The budget 2012
The Chancellor whacked up tax rates on prime
properties in May 2012.
We are now eleven months into the new period of
7% stamp duty for transactions over £2 million and
15% if buying the property using a “non-natural
entity” such as an offshore or onshore company.
The mansion tax uncertainties ensured that the top
end of the market slowed down, whereas properties
below the £2 million threshold were being snapped
up with a record amount of applicants per
instruction.

7. The budget 2012
Research shows that transactions on £2 million +
properties had fallen by over 40 % from April to
September 2012 compared to 2011

8. The budget 2012
We have seen a surge of interest for properties over £2m since
the 7% stamp duty has settled and the talk of mansion tax is
unlikely to happen.

9. Funding for Lending
scheme
Lending has remained the most noteworthy
constriction on the housing market activity in
2012 – governments new Funding for Lending
scheme is unlikely to make much difference to
mortgage availability.

10. Chiswick buyers
We have found that the Chiswick market
hasn’t really been affected by lending
restrictions because most of our buyers
are...
The remaining We have seen that
50% are mortgage our average
50% cash deposit size is over
buyers
buyers 50%

11. Generation rent
Generation Rent is a hangover
from the credit crunch, now
borrowers need to have
considerably bigger deposits to
get a mortgage. That’s forcing
many more to rent, and that “Rent rises trap a generation who
increased demand has, in turn, will never afford their own home.
pushed rental prices up to Stagnant wages, increasing rents
record levels. and rising house prices mean
would-be homeowners unable to
save deposit for first property.”
The Guardian

12. Generation rent
The average rent in the capital
has risen by 6% in the past year
by 16% in the past two years
and by a staggering 32% since 2009

13. Generation rent
People with the money to invest in a second property
for a buy-to-let investment are tapping in to the
generation rent market…including parents looking to
get their children on the property ladder.

14. Generation rent
We have seen a
massive increase
in the amount of
parents buying
flats for their
children as an
investment/to get
them on the
property market

15. Buy-to-let
The buy-to-let market
rocketed its way through
2012, with lending up to
11.5% of the total gross
mortgage lending at £16.4bn
(for a total of 136,900 buy-
to-let loans).
That’s 19% higher than it
was in 2011, and its highest level
for four years
Figures from the Council of
Mortgage Lenders (CML)

16. The PCL trickle effect
Chiswick has taken on a
'trickle effect' of prime
central London buyers that
are looking for a similar
lifestyle as prime central but
avoiding the record high
pricing. This Zone 2 theory is
especially popular with
young families, growing
families and buy-to-let
investors looking to cash in
on “generation rent”

17. The PCL Chiswick
effect
London’s west & south-west boroughs are attracting
buyers looking for an alternative to Kensington and
Chelsea
In 2012 39% of Chiswick buyers moved from
Kensington and Chelsea, resulting in a significant
impact on property values in Chiswick
The profile of Chiswick buyers is becoming
increasingly similar to the profile of PCL buyers.
In 2012 60 % of buyers purchasing property in
Chiswick worth £2m plus originated from
overseas…

18. The comparative cheapness of Chiswick, compared
with its higher valued neighbours, remains a
significant factor in attracting buyers to the area.
A property in Chiswick is likely to cost an average of
£700 per sq ft, compared with an average of
£1,800 per sq ft in prime central London.

19. House prices in Chiswick
8-10% rise over the past year
PCL trickle
Zone 2 demand 80% of properties asking price
or above
Safe investment
Av On average 15 buyers per
property
Foreign money selling
time
Young families 2 weeks

20. Trends
Influx of European buyers paying asking
price & above
Buy to let
investors and
Homeowners cashing in on the current parents looking to
supply/demand trend. Cashing in their
home and moving out of the city.
help their children
onto the property
ladder

21. Moving to the country

22. City prices vs. Country
prices
Year Av price terraced Av detached house % difference
house Chiswick South West
Nov 2007 £632, 025 £311,372 50.7% difference
Dec 2012 £885,200 £272,429 69.22% difference

23. City prices vs. Country
prices
5 bedroom semi detached house
£1,999,999

24. City prices vs. Country
prices
6 bedroom
detached with
1 acre land
£1,500,000

25. City prices vs. Country
prices

26. 2013-2014 The future
Despite the general market reports that
there will be little PCL growth in the
capital during 2013, our figures show that
the lack of supply and continued demand
for property from abroad and within the
UK are even stronger. We are expecting an
5% growth in Central and West London.