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April 19, 2024
Isleworth Property Owners have gained an average £15,318 per year in the value of their property since 2001. If you are an Isleworth homeowner or landlord, this article tells you how much each type of Isleworth property has gone up in value and what this means to the Isleworth property market.
As we are now nicely into 2024, it’s certain the Isleworth housing market over the last 18 months has been a little more restrained than 2020, 2021 and early 2022, and I believe that the ‘steady as she goes’ outlook will continue into the rest of 2024 and beyond.
As property ownership is a medium to long-term investment, it is important to see what has happened to Isleworth house prices.
This is important as house prices are a national obsession and tied into the health of the UK economy as a whole. Most of that gain has come from the overall growth in Isleworth property values, while some of it will have been enhanced by extending, modernising, or developing their home.
Taking a look at the different types of property in Isleworth and the profit made by each type, it makes interesting reading:
| Average Price Paid in Isleworth in 2001 | Average Price Paid in Isleworth in 2024 | Total Profit in the Last 23 years for an Isleworth Home | Average Profit Per Year for Each Isleworth Homeowner | Average Annual % Increase in Isleworth Homes | |
| Detached | £331,379 | £2,400,129 | £2,068,750 | £89,946 | 27.1% |
| Semi-Detached | £217,545 | £769,813 | £552,268 | £24,012 | 11.1% |
| Terraced | £185,430 | £581,390 | £395,960 | £17,216 | 9.3% |
| Apartments | £133,029 | £350,918 | £217,889 | £9,473 | 7.2% |
| Overall Average | £181,723 | £534,047 | £352,324 | £15,318 | 8.5% |
However, we can’t forget there has been 79% inflation over those 23 years, which eats into the ‘real’ value (or true spending power of that profit) … so if we take into account inflation since 2001, the true ‘spending power’ of that profit has been lower.
| Total ‘REAL’ Profit After Inflation in Isleworth | ‘Real’ Annual Profit in Isleworth | |
| Detached | £1,151,224 | £50,053 |
| Semi-Detached | £307,328 | £13,362 |
| Terraced | £220,345 | £9,580 |
| Apartments | £121,252 | £5,272 |
| Overall Average | £196,062 | £8,524 |
I wanted to illustrate that despite the 2008/09 Credit Crunch property market crash, which saw Isleworth property values plummet by 15% to 20% over 18 months, homeowners in Isleworth have still fared better over the long term than those renting.
The primary influence on maintaining house price growth in Isleworth over the medium to long term will be the construction of new homes locally and nationally. Although we have yet to get the figures for 2023, government sources indicate that the number of new households is expected to be between 210,000 and 220,000.
Considering the annual need is for 300,000 new households to meet demands arising from factors such as immigration, increased life expectancy, higher divorce rates, and later cohabitation, it’s clear that demand will continue to outstrip supply unless the government heavily invests in building council houses.
What about Isleworth landlords, though?
Even though the number of landlords liquidating their property portfolios has increased in the last couple of years and the number of landlords buying is lower than in the 2000s and 2010s, there is still net growth in the size of the private rented sector each year.
This is all despite facing higher taxes. The simple fact is many Isleworth landlords remain keen on expanding their portfolios in the long term.
The younger generation in Isleworth views renting as a choice that offers flexibility and alternatives that homeownership does not provide. This means that demand for rentals will keep growing, allowing landlords to enjoy rising rents and capital appreciation.
However, Isleworth buy-to-let landlords must adopt more thoughtful strategies to maintain profitable returns from their investments.
Since the 1990s, generating profits from buy-to-let property investments was straightforward. Moving forward, with changes in the tax laws and the balance of power, achieving similar returns will be more effortful. Over the past decade, I’ve observed the evolution of agents from mere rent collectors to strategic portfolio managers.
I, along with a select few agents in Isleworth, am adept at providing comprehensive, strategic 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 19-04-2024