Property Price Changes in Hillingdon in 2014

 

PostcodeAreaCurrent Av Property PriceChange Last 12 mthsChange Last 6 mths
UB8Uxbridge£332,3339.9%2.4%
UB7West Drayton£288,9057.9%3.2%
UB10Ickenham/Hillingdon£466,5698.8%1.9%
UB4Hayes/Yeading£290,97710.6%2.1%
UB3Hayes/Harlington£286,83110.0%2.3%
HA4Ruislip£454,7039.7%3.8%

 

Strong House Price Growth in Hillingdon

The growth in Hillingdon property prices has been strong over the last year, varying between an increase of 7.9% in West Drayton to 10.6% in Hayes and Yeading.  I would have expected West Drayton to increase more than Hayes/Yeading (UB4 postcode) because it has less transport links than the rest of Hillingdon.  However it does have a lot of three bed family homes which are affordable and it is the part of the borough closest to more expensive areas further into London.

West Drayton continues to drive interest from Crossrail investors, but materially from Zoopla’s figures not enough to cause out performance of the local market to other areas of Hillingdon.    

Central London prices affect prices in Hillingdon but they do ripple out rather than having an immediate effect.  As prices go up in Central, then demand increases in commuter belts around London.  However as prices have fallen back in London we have not seen this affect local prices.  Although price increases have slowed.  According to Zoopla in Uxbridge we have seen price rises of 10% for the last year, but only 2.4% for the last six months.  I would point out that 2.4% is still more than the full years inflation rate.

Are Hillingdon House Prices Still Increasing?

Land Registry data shows average prices are going up at a higher rate than Zoopla states.  Their figures show the average property in Hillingdon has risen by 5.7% since the end of July to now stand at  £321,074.  It was at £281,860 last December. So a 13.1% increase over a year.

 

Month / YearAverage House PriceChange on Previous Month
Nov 2014£321,0740.5%
Oct 2014£319,4822.0%
Sep 2014£313,3051.0%
Aug 2014£310,0972.2%
Jul 2014£303,3742.0%
Jun 2014£297,3720.6%
May 2014£295,6552.0%
Apr 2014£289,8920.0%
Mar 2013£289,8411.4%

 

What does the future hold?

Nobody knows for certain.  The closest I would get is to say variability over the short term (especially during an election year) and over the long term property price increases remain likely.  Why am I confident about the longer term?

Population growth continues and we are not building enough dwellings to cater for that growth so that can only lead to upwards pressure on house prices. 

What are the Average Yields in Hillingdon? 

 

PostcodeAreaAvg RentAvg Yield
UB8Uxbridge£1,9106.9%
UB7West Drayton£1,1534.8%
UB10Ickenham/Hillingdon£1,7304.4%
UB4Hayes/Yeading£1,1184.6%
UB3Hayes/Harlington£1,2335.2%
HA4Ruislip£2,0965.5%

 

Why is Uxbridge Property Yield So High?

Yields vary by area with an average yield of 4.9% in Hillingdon excluding Uxbridge. 

Why does Uxbridge have sure a high average rent and therefore yield?  Student accommodation at Brunel University inflates the average rent.   There are a large number of shared student properties in the area which rent for £2,000-£3,000pcm depending on the number of rooms.  These properties will tend to be worth more than the average property price and so inflate the figures.

I would expect the yield to be more consistant with the area average with student property removed.