What’s really happening in the Chiswick property market?

Ad - Chiswick Estate Agents Horton and Garton consider the effect of the upcoming budget

The upcoming Autumn Budget has introduced an element of uncertainty into the UK property market, with potential changes to Capital Gains Tax (CGT) and Stamp Duty being watched closely.

There is speculation that property owners, particularly investors and second homeowners, could face increased CGT rates. Stamp Duty Land Tax (SDLT) could also be adjusted with higher Stamp Duty surcharges potentially put in place for high-value properties and second homes. However, first-time buyers may benefit from further relief, which could drive demand in the lower price brackets ​.

Further changes might specifically affect landlords, with potential restrictions on tax reliefs for rental income and higher surcharges on buy-to-let properties ​. Though there is also implication that energy efficiency improvements may offer some tax incentives for landlords investing in greener properties.

Horton and Garton provide regular updates on the latest government announcements on our blog and in our regular newsletter which you can subscribe to on our website.

As to the current local property market climate, here’s what’s happening in Chiswick, and what it means for those looking to buy or sell in the coming months.

Resilience amid uncertainty

Over 490 transactions have been completed in Chiswick in the past 12 months, showing the area’s consistent popularity despite wider shifts in politics and the economic landscape. While buyer caution has surfaced ahead of the Budget, the market remains stable, with average sale prices ranging between £814,000 and £884,000. Prime properties in Chiswick continue to perform well, with the highest recorded sale reaching £4.3 million.

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According to Nationwide, the UK saw its fastest annual house price growth in two years in September, at 3.2%, and Halifax reported a similar upward trend. These figures are reflected in the Chiswick market, reinforcing the strength of West London’s appeal. The Bank of England’s recent decision to keep interest rates at 5%, with further cuts anticipated, is expected to boost activity as we approach the end of the year, potentially benefiting buyers who move quickly to take advantage of falling mortgage rates.

Some mortgage rates for five-year fixed products have already dropped to 4.3%, down from 5.2% a year ago, signalling favourable conditions for both buyers and sellers – now could be ideal to move in advance of what could be a flurry in the not-too-distant future.

High demand, limited supply

Chiswick’s rental market remains strong, with tenant demand remaining robust, particularly for family homes, where competition continues to outstrip supply.

Average monthly rents in London have now reached a record £2,694, up 2.5% from last year, as Rightmove reports. Rising regulatory costs and concerns about inheritance tax (IHT) and Capital Gains Tax (CGT) have led some landlords to reconsider their portfolios, with many opting to leave the market. Rightmove has called for tax relief to support landlords in investing in energy-efficient upgrades to meet new EPC regulations.

For an update on the wider local market, read the West London Property News article on our website.

What’s Next?

With interest rates set to decline further and potential Budget announcements on the horizon, now is the time for both buyers and sellers to assess their options. For those considering a move, acting before the market gains further momentum could be advantageous.

For those considering their next steps, whether in sales or lettings, the Horton and Garton team is available for consultation to provide expert advice tailored to your property needs. Contact Us.

And don’t forget to join us at the W4 Chiswick Ceramics Fair on November 23rd—a perfect opportunity to engage with the community and explore local talent.

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October 18, 2024