Greenwich's Housing Market: An in-depth analysis of where Greenwich people are moving.
Despite the national headlines of gloom, Greenwich's property market displays a surprising resilience, with an influx of first-time buyers and ample opportunities for savvy investors. Dive into an in-depth analysis to uncover where Greenwich residents are moving, and why this market remains a beacon of hope amid challenging times.
The consensus among economists and the wider public is clear: the remarkable ascent of Greenwich's property prices over the previous twelve years has reached its peak and is now starting to drift downwards.
Major national publications splash headlines filled with pessimism about the UK housing market, citing issues such as buyer affordability caused by challenges with average salary growth not keeping up with inflation, higher interest rates also hitting buyer affordability, and the hangover of the pandemic making recruiting people hard work. However, these gloomy projections don't seem to resonate with the fact that Greenwich's property market activity in the past year closely mirrors that of 2017/18/19.
This divergence might hint at the age-old notion:
'bad news sells newspapers'.
To provide a clearer picture, let's delve deeper into Greenwich's property market nuances, focusing on the demographics of movers and their motivations.
During the past year most of the property sales in Greenwich were flats, selling for an average price of £541,920. Terraced properties sold for an average of £898,220, with semi-detached properties fetching £1,190,450.
A closer look at Greenwich's homeowner sector in the last 12 months of housing data reveals the following...
· 576 Greenwich households moved within the same ownership sector, implying they sold their home to purchase another.
· 136 Greenwich households ended and exited home ownership (i.e., moved in with family, moved to a care home or sadly passed away).
· 145 Greenwich households shifted from owning to private renting.
· 13 Greenwich households moved from home ownership to social housing (i.e., Council Housing or Housing Association).
· 306 Greenwich households shifted from private renting to homeownership.
· 311 new Greenwich homeowner households emerged, transitioning from residing with family or friends to buying their first property without experiencing the private rental sector.
Despite the relentless doom and gloom portrayed in the media about the property market, it's heartening to witness a robust influx of Greenwich first-time buyers securing their own homes.
Remarkably, 311 of these newcomers have moved from family or friends into homeownership, showcasing the enduring spirit of people wanting to buy their home. Additionally, 306 households have transitioned from the private rented sector, demonstrating a genuine aspiration among tenants to achieve homeownership.
This trend underscores the resilience and adaptability of aspiring homeowners amidst challenging times.
But what does this data spell out for Greenwich's buy-to-let landlords?
On the surface, with 306 households moving from private rentals to homeownership and 145 moving the other way, there seems to be a slight contraction in the private sector.
Yet, what I don’t mention is the number of new rental households. I do not have the Greenwich statistics for those yet, but we can look to the national statistics.
Whilst the number of British landlords, according to capital gains tax receipts, selling up has increased by around 45% in the last year compared to pre-pandemic levels, the number of landlords buying buy-to-let is only 19% down.
There are new rental properties being created, whilst at lower than previous years, it is still growing nationally by 177,000 households a year.
So where are the opportunities for Greenwich landlords?
A golden opportunity for Greenwich's property investors lies in the 136 properties that went up for sale last year due to owners passing.
Often, these homes, maintained over several decades by older owners, feature high-capital improvements like double-glazing or central heating. However, they might lack contemporary aesthetics, having outdated decor or out-of-style fixtures from the 1980s.
Such properties often come at lower prices because many buyers overlook their potential due to dated appearances. A smart investment in renovations could lead to handsome profits on resale.
It's imperative to put things in perspective. Regardless of global events - whether it's post Brexit, post Pandemic, potential political shifts in the US or China, interest rates or stock market dynamics - Greenwich's property market remains robust in the mid to long-term framework.
Even as we witness minor value corrections in the upcoming 12 to 18 months, history has shown that property prices bounce back, often with greater momentum.
This underscores the timeless advice to those venturing into the property market, be it first-time buyers, landlords, or homeowners: property is a marathon, not a sprint.
Commitment to the long haul invariably yields rewards, a philosophy that can be applied universally don’t you think?