According to the Rightmove House Price Index, this July marked the first time that we have seen a drop in asking price for property in 2011 – except in Ealing. Ealing, along with the London Borough of Brent were the only two London boroughs whose average asking price went up in July 2011. Admittedly, the asking price rise in Ealing was a very incremental amount, but when compared to the drop experienced elsewhere in the capital, it is very notable.
Rightmove recorded a fall of 1.6% (£3,797) in average asking prices for the 108,249 properties marketed on its website within the last month. The fall marks the first time in 6 months that property prices have dropped and reduced the 8.1% rise in prices that was accumulated over the first half of 2011.
Ealing, on the other hand enjoyed a modest 0.1% rise in asking price when compared to the previous month. A modest rise indeed, but when compared to the worst performing borough in London, Haringey, where the average asking price dropped by 1.4%, that very small gain in Ealing prices seems more significant. Even the next best performing borough in London, Newham, experienced a drop of 0.3% in their asking prices.
Ealing homeowners will be happy to know that even when comparing the year on year figures for asking prices, Ealing enjoyed a 1.9% rise on July 2010. When comparing the annual figures across all the London Boroughs, it is obvious that Ealing’s almost 2% rise is no where near Brent’s 10.9% jump in asking prices. However, when considering that less fortunate home owners in Croyden, for instance have seen yet more of their equity disappear, it is reassuring to know that Ealing’s status as “Queen of the Suburbs” is not under threat.
Not surprisingly, most of the top performing boroughs when compared to last year’s figures, tend to be more central areas, such as Westminster or developing areas like Newham or Brent. Ealing however, has always been a dependable area to invest and live in. While the “dependable” label may not have the sexy appeal of “up and coming”, it is certainly becoming more appealing in the current economy when so many things are just not certain.
If you are to do a Google search on “up and coming” areas of London, you will find articles pointing you towards boroughs such as Newham, which according to the Rightmove House Price Index is indeed fairing well a 6.5% rise when compared to July 2010. While Newham is placed in the top 5 performing boroughs in London this month, it has experienced a 0.3% drop in asking price.
And those articles that point you toward “up and coming” areas do caution that there are no assurances when investing in property in these areas. While areas that are seen as the next big thing, are usually a bit cheaper than more well established areas like Ealing, they do carry a larger risk. Will they continue to rise in popularity or will the interest drop off and the prices with them?
Certainly, when you are watching the equity in a property that you have bought in an area reputed to be up and coming dwindle because the predicted popularity and rise in house prices never came to fruition, the attraction of a “dependable” area like Ealing, becomes much more understandable.
In the long term and in this economy, “dependable” is the new watch word.
To find out how much your property in Ealing is worth, call our sales team on 0208 840 6666 to request a free valuation or request your free valuation online. With over 25 years of experience in the borough and many industry award to our credit, Northfields in your dependable agent in a undependable market.