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July 21, 2025
As we are now half way through 2025, it’s certain the Isleworth housing market has been more restrained than the post pandemic 24 months of the summer of 2020 through to July/August of 2022, and I believe that the ‘steady as she goes’ outlook will continue into the rest of 2025 and beyond.
As I always say in my Isleworth property market updates, home ownership is a medium to long-term investment, so I feel it’s always important to measure what has happened to Isleworth house prices over those medium to long terms.
This is significant as house prices are a national fascination and sub-consciously tied into the perceived health of the UK economy. Most of that 127% gain has come from the overall growth in all Isleworth property values, while some of it will have come about by modernising, extending or developing their Isleworth home.
Analysing the different types of property in Isleworth and the profit made by each type, it makes interesting reading:
However, we can’t forget there has been 77% inflation over those 20 years, which eats into the ‘real’ value (or true spending power of that profit) … so if we consider inflation since 2005, the true ‘spending power’ of that profit has been lower.
I wanted to show you that despite the 2008/09 Credit Crunch property market crash, which saw Isleworth property values plummet by 16% to 19% over 18 months, Isleworth homeowners have still fared better over the long term than those renting.
The main influence on maintaining house price growth in Isleworth over the medium to long term will be the construction of new homes (on the supply side) and employment and interest rates (on the demand side). Although we have yet to get the official figures for 2024, independent sources indicate that the number of new households is expected to be around 217,900. Bearing in mind the annual need is for 300,000 new UK households – to meet demands arising from factors such as increased life expectancy, immigration, and later cohabitation – it’s clear that demand will continue to exceed supply unless the government heavily builds council houses.
What about Isleworth landlords, though?
Even though the quantity of landlords selling up their rental portfolios has increased in the last couple of years and the number of landlords purchasing buy-to-let properties is lower than in the last couple of decades, there is still margin net growth in the size of the private rented sector each year. This is all notwithstanding landlords facing higher taxes. The fact is many Isleworth landlords continue to be keen on expanding their rental portfolios in the medium to long term.
Many of the 20 and 30 something’s of Isleworth view renting as a choice that offers flexibility and options that homeownership does not provide. This means that demand for rentals will keep rising, allowing landlords to enjoy capital appreciation and rising rents. However, Isleworth buy-to-let landlords must accept more considerate strategies to maintain profitable returns from their investments.
Up until 2017, generating profits from buy-to-let property investments was like falling off a log. Since then, with changes in legislation and taxation, the balance of power, achieving similar returns will be more effortful. Over the past 8 years, I have observed the evolution of agents from mere rent collectors to tactical rental portfolio managers. I, along with a select number of agents in Isleworth, am skilful at providing strategic and comprehensive portfolio leadership. This service offers a structured overview of your investment goals across short, medium and long-term horizons, focusing on your expected returns, yields and capital growth. If you seek such advice, feel free to contact your current agent or me directly at no cost or obligation.
By Pavan Chaudhary – 21-07-2025