On Sunday I wrote about the recent increases we have seen in the area over the summer.
Property prices in Hillingdon have risen by 16.5% on the last year to an average of £416,077 now. England’s prices have also risen but by less, 9.2% and London is a major contributor being on average up 12.1%. It is worth pointing out that nationally an increase of 9.2% is very respectable.
With these increases you can see the buying power of owners in Hillingdon (and London) is very strong compared to those outside the South East especially. In effect if you sell up and move away from London your house buys more and more, moving into London from the rest of the and you can afford less and less.
Over the long term this seems a good reason to stay invested in the property market inside the M25 if you have that option (and I appreciate not everyone does).
Purchasing Parity : If you sold your Hillingdon house how far would it go towards buying a house in another part of the country over the years?
To explain the table the price of an average property in Dorset was £63,325 and in Hillingdon it was £75,000 so your Hillingdon property would have bought you 1.2 houses and it can now buy you 1.5 houses. A bigger house or more money in the bank towards generating an income perhaps.
Pricing parity changes over time, so we see in 2000 in Norfolk and Wales your Hillingdon property would have bought you more than it did in 2005 when prices across the country caught up. It is highly likely to change in the future. But how? If I knew that….
This parity also leads to prices going up in Hillingdon. In 2015 Hillingdon was looking cheap compared to the rest of London. Perhaps one of the reasons why prices in Uxbridge, West Drayton and Hayes have increased over the London average last year. The anticipation of future price increase due to Crossrail bringing us closer to the capital may be another.
The next question is of course what impact will the expansion at Heathrow be on the local property market?
Hope you found this latest update interesting. If you want to talk about the local market and lettings please feel free to get in touch!