The North West London Property Market in 2014

An Overview of buying, selling, renting and investing in 2014 from North West London estate agents Sandfords

What's new in property this year?

The property market in 2014 is one that is new to everyone - home movers, investors and property professionals alike. The trough of 2007 is in the past and true to its cyclic nature, the market is buoyant once again. However, the economic climate is unique and it's wise to understand all the facets of the current market to get the home moving advantage. Many initiatives are in place to aid people moving to a home of their own, while others are in place to control the 'heat' of the market, to recoup tax and to boost house building.

Sandfords North West London estate agents present an overview of buying, selling, renting and investing in property this year.

The Government's Help to Buy Initiative

The Government's Help to Buy initiative is probably the most radical introduction. Split into two strands, each is designed to make homeownership more affordable. Help to Buy Mortgage Guarantee Scheme - this is open to all home movers buying any type of property, subject to a few conditions.* An agreement between the Government and selected mortgage lenders has paved the way for a new set of mortgages, available with a deposit of just 5%. The mortgage repayment is the only debt the purchaser has to pay, with the Government providing lenders with financial assurances. The Mortgage Guarantee Scheme is set to run until 2017, although the Bank of England is closely monitoring the initiative and how it affects the housing market. Help to Buy Equity Loan Scheme - most buyers* of brand new homes qualify for the Equity Loan initiative. The home buyer puts forward a 5% deposit and the Government loans the buyer a 20% deposit. The remaining 75% of the purchase price must be funded by a mortgage, and the Government loan will need to be paid back. The Chancellor extended this part of Help to Buy to 2020 in his March 2014 Budget. * To qualify for either part of Help to Buy, the purchase price must be under 600,000; the property must be the only home the buyer owns; the property being purchased should be the primary residence and not let out, and the buyer should expect a mortgage 'stress test' to assess future ability to repay the mortgage/loan.

Increase in stamp duty on homes worth 500,000 or more, bought through companies

The Chancellor's move to claim more stamp duty land tax will affect many buyers of flats and houses for sale in North West London, as the new tax bracket now starts at just 500,000 - well below the average asking price of many properties for sale in North West London. The new tax only applies to property bought through companies but as this is a common practice among international buyers and the wealthiest of UK residents, our North West London estate agents predict many transactions in our catchment areas, like Marylebone, Regent's Park, Hyde Park, Primrose Hill, St John's Wood, Hampstead, Camden and Belsize Park, will be affected.

Build to Rent: Good for a trio of reasons

There should be an increase in property to rent in North West London if the Build to Rent plan gains momentum. The Government has laid down 1 billion worth of loans to be applied for by developers and house builders. It is hoped thousands of homes, specifically for rent in the private and affordable sectors, will be built over the coming years now that finance packages are in place. Build to rent should provide work for builders, ease the shortage of 'to let' properties and hopefully reduce the cost of flats and houses to rent in North West London and beyond.

Change in tenancy agreement length

A recent report into the private rental sector by charity Shelter highlighted the need for more stability among the long-term tenant population. Property to rent in North West London used to be offered on fixed-length tenancies of one year or less. However, this has recently altered due to a change of heart by one leading mortgage lender. Sandfords North London estate agents previously helped landlords secure buy-to-let mortgages with a 12-month tenancy agreement cap. However, the Nationwide is now offering buy-tolet mortgages where landlords can offer tenancies of up to three years. This is great news for tenant families looking for a secure home environment and long-term renters looking to commit to a particular property.

North West London Property for Sale

Want to make 2014 the year you become a homeowner? Here are some of our top featured properties for Sale in North West London:

4 bedroom flat for sale in Neville Court, Abbey Road, St Johns Wood, London, NW8

3 bedroom house for sale in Park Village West, Regents Park, London, NW1

For an updated and complete list of properties for sale in North West London, please visit www. sandfords.com

North West London Property to Rent

Looking for a new rented property? Here are some of our top featured properties to Rent in North West London:

4 bedroom flat to rent in Harley House, Marylebone Road, London, NW1

3 bedroom flat to rent in Baker Street, Marylebone, London, NW1

For an updated and complete list of properties to rent in North West London, please visit www. sandfords.com

Contact Us

If you decide to consider North West London when searching for a property to rent closer to the City, dont hesitate to contact one of our estate agents offices. We specialise in property sales and lettings in North West London and the surrounding areas of Central and West London.

Regents Park Estate Agents 213-215 Gloucester Place London NW1 6BU T +44 (0)20 7723 9988 rpsales@sandfords.com rplettings@sandfords.com

Marylebone Estate Agents 6 Paddington Street London W1U 5QG T +44 (0)20 7224 4994 mvsales@sandfords.com mvlettings@sandfords.com

Primrose Hill Estate Agents 107 Regents Park Road London NW1 8UR T +44 (0)20 7722 7997 phsales@sandfords.com phlettings@sandfords.com