Agents report quick pick up in activity after lockdown eased


There were some sales of new build units in Myers Cour Reynard Mills

Local estate agents are reporting a positive tone to the Brentford market since the government allowed them to do business again in May.

Pent up demand seems to have led to a quick recovery in activity and there are hopes that this may be sustained and the grimmer predictions for house sales will not be realised.

Daniel Madden, Managing Director of Thorgills said, “In the six weeks since the property market re-opened for business, we have noted a refreshingly positive tone throughout the Brentford market. The anticipated bottleneck of buyers and tenants that were actively looking to move home pre-lockdown, presented themselves with tenacity and vigour immediately following the market re-opening, and we’re very pleased to report a significant number of sales and new tenancies were agreed.

“Perhaps contrary to national media predictions, market activity remains buoyant, with buyer and tenant enquiries still high and the volume of properties coming to the market continuing to grow. The supply and demand balance remains delicate however, with both buyers and tenants acutely aware of the opportunity that Covid-19 presents, in regards to negotiating on price. That said, properties priced correctly are receiving bids above their asking price and only last week a sale was agreed on a property valued at £1.325M, which had been on the market for a considerable period of time.”

Another local agent commented, “The relief is that the renewed activity is not down to Covid-19 fatalities or couples who could no longer live in the same house after falling out over lockdown. Demand is coming from people who have been reflecting on the importance of your home in a difficult time and they are buying to gain an increased sense of security rather than acquire an appreciating asset. For this reason I think we can conclude this surge of interest is, to a degree, sustainable and not just a brief flurry of pent up demand”

According to the Land Registry there were 31 sales of properties in Brentford in the TW8 postcode area prior to lockdown at an average price of £420,859. These included some sales of new build units in Myers Court in the Reynard Mills development.

Daniel Madden commented, “Lockdown has also caused some unintended consequences; lots of us are considering upsizing, some are separating, many have a new found appreciation for outside space, and a home-work space has become something of a necessity for many movers. All in all, it’s generating greater market activity then we have seen in a couple of years. Certainly 2020 began strongly, post general election, with a couple of years’ worth of pent-up demand, based on Brexit uncertainty, finally entering the market and moving forward with their lives. It would seem that the demand has returned, if not for the long term, certainly for the short.

“The true test will come in the Autumn, as the nation returns to work from furloughed leave, or in many cases it doesn’t. The economy will no doubt feel the strain and lending criteria will naturally tighten, potentially reducing the number of first time buyers entering the market. If this happens then conditions could become tough, not to mention the risk of a second wave. We remain optimistic that the market will continue to perform well annually, but the winter may well see a slight dip before another bounce in the Spring.”

Where do I live? Brentford TW8 postcodes are divided into three sectors, TW8 0xx, TW8 8xx and TW8 9xx. Broadly speaking, TW8 0xx covers areas east of Boston Manor Road, TW8 8xx goes west of Boston Manor Road, whilst TW8 9xx covers the areas to the north of the A4.

Source: Land Registry

According to the Land Registry’s House Price Index, London was the best performing region of the country seeing a 4.7% rise in prices up to the end of March 2020. This brought the average price in the capital to £485,794. The rise for England was of 2.2% bringing the average property value to £248,271.

The Nationwide’s House Price Index showed a similar picture with a 3.7% annual growth rate for prices up until the end of April, the fastest since February 2017.

Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said, “In the opening months of 2020, before the pandemic struck the UK, the housing market had been steadily gathering momentum. Activity levels and price growth were edging up thanks to continued robust labour market conditions, low borrowing costs and a more stable political backdrop following the general election.

“But housing market activity is now grinding to a halt as a result of the measures implemented to control the spread of the virus, and where the government has recommended not entering into housing transactions during this period.”

He added that while the low level of transaction might mean it is difficult to calculate the index in the short term, “the raft of policies adopted to support the economy, including to protect businesses and jobs, to support peoples’ incomes and keep borrowing costs down, should set the stage for a rebound once the shock passes, and help limit long-term damage to the economy. “

Regular updates on the local property market are published in the weekly BrentfordTW8.com newsletter.

June 26, 2020