Chiswick Property Market Update - February 2023

Chiswick Estate Agent, Horton and Garton consider the latest local market data and the outlook for the month ahead (Ad)

With some reports showing that W4 property prices have increased by over a quarter in a year and others predicting a 10% fall in values, Chiswick homeowners can be forgiven for feeling a certain level of unsurety about the outlook for the local property market.

Chiswick property prices

There’s a lot of commentary in the press, and Chiswick in particular has been singled out recently as the ‘only area of London where house prices rose by more than a quarter in the year’; the news article from mid-January used latest Land Registry data to highlight that there had been a 27% increase in prices in the W4 postcode YoY. However, it’s important to realise that Land Registry data is a few months behind, this data is true of the year September 2021 – September 2022 prior to the spike in borrowing costs which caused significant disruption in the market.

The Chiswick housing market continues to have a shortage of certain types of properties available for sale compared to the number of buyers seeking homes. This said, given the current climate, buyers are unwilling to overpay for properties.

A more recent report from private bank Coutts focusing on property over £1million in value, found there had been a net fall of 2% in prices across the prime markets in Chiswick and Hammersmith over the past 12 months.

In the same research, Coutts found that 34.7% of all prime London homes listed on the market had experienced a price reduction and on average buyers had been able to negotiate a 7.7% reduction from the listing price.

In terms of property prices in Chiswick, our key message to vendors and buyers is to be realistic. The market is not weighted in favour of either party but requires a fair approach.

What does this mean for the W4 property market?

Undeniably there has been a slight adjustment in the local W4 property market with the sharp rise in interest rates having impact throughout the latter stages of 2022. The large price increases witnessed in certain parts of the West London market over the past few years have been fuelled by an under-supplied house market.

Motivated buyers are back out looking for homes in Chiswick in far greater numbers. Sellers, seeking to make plans to move without pressure, are opting to sell discreetly off-market and in January we have seen several properties achieve full and fair prices within weeks of becoming available away from the open market.

The Bank of England has now raised the base rate further to 4.0% but have predicted a much less bleak outlook than previously feared.

What does the base rate rise mean to borrowers who are not on a fixed rate mortgage? According to TotallyMoney, the 0.5% hike will add £52 a month to an average mortgage. This figure is based on the average UK property costing £270,708 with a 75% loan-to-value and a mortgage with a 25-year term.

Mortgage rates have fallen considerably in recent months given the competition in the mortgage market those borrowing might encounter more favourable rates now despite the base rate rising.

Moving home in 2023

There continues to be a shortage of larger houses, particularly homes in excellent condition where buyers can move in without having to carry out any works.

Chiswick continues to be one of the most desirable places to live in London meaning demand for property to buy or rent continues to be strong.

To discuss your plans to sell or let property in W4 get in touch with our local team, without obligation.

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February 3, 2023