Property Update - East Dulwich Property Market 2014 Review
A number of landlords, who own property in East Dulwich, have made contact with me recently asking for my thoughts on the future of the property market in East Dulwich. I always like to talk about the East Dulwich property market, and in future articles intend to share with you my thoughts on the local property market, its history of rents, property values, tenant demand and yields; all important matters for a landlord, but today I wish to discuss what has happened in the last 12 months
According to recent data from December, property values in East Dulwich ended the year 13.4% higher than the start of the year. It should be no great surprise to hear that East Dulwich property values are starting slow up as we go into the New Year. Property values in the town were growing up to an impressive 2.7% per month in the Summer just gone, but in the last few months, they slowed down considerably, rising barely over 0.3% a month.
The reality is we have had a year and a half of decent market conditions in East Dulwich, but now all that pent up demand is starting to fade. The big question moving forward is whether the East Dulwich market will now be held back by affordability and restricted mortgage lending, and what long term impact this will have on the East Dulwich property market.
Looking at the London as a whole, because we can’t look at East Dulwich in just its little own bubble, the recent rapid rise in house values in London as a whole in the early part of the year, along with earnings growth that remain below inflation and the possibility of an interest rate rise over the coming months, appear to have tempered housing demand. This weakening in demand has led to a modest easing in both property price growth and sales. Some homeowners are now tempering their asking prices and being a lot more realistic to attract the buyers. A moderation in growth looks likely into next year as supply and demand become increasingly better balanced.
Now with the General Election on the horizon, whichever Government takes power, they, along with the Bank of England, have a thorny job to do in balancing the expected rise in interest rates with the continued resurgence of the housing market, to ensure the property market doesn’t drop and drag down the economic recovery forcing people into selling their property at a loss.
However, back to East Dulwich, long term property values which track peaks and troughs are more helpful to landlord investors. The questions I seem to be asked on an almost daily basis by landlords are:-
- “Should I sell my property in East Dulwich, or even buy another?”
- “Is the time right to buy another buy to let property in East Dulwich and if not East Dulwich, where?”
- “Are there any property bargains out there in East Dulwich?”
Many other East Dulwich landlords, both who are with us and many who are with other East Dulwich letting agents, like to pop in for a coffee to discuss the East Dulwich property market, how East Dulwich compares other areas of South London such as Crystal Palace or Balham, and hopefully answer the three questions above. I don’t bite, I don’t do hard sell, I will just give you my honest and straight talking opinion.