Affordable Luxury Living in West London, a new report on the trends in Ealing’s property market published by Dataloft, the research intelligence group, commissioned by Galliard Homes reveals how the transformation of Ealing’s residential property market is redefining the neighbourhood, elevating the supply of new homes, which are supported by government policies such as Help to Buy, cementing the growth in property prices in the area, developing the appeal to foreign investors due to currency rates and increasing the opportunity to buy new-build properties in outer London.
Ealing, which is 21,44 square miles in size, has a population of around 342,700 people and is London’s third largest in population. As part of the growth of London in the 20th century, Ealing significantly expanded and increased in population, becoming a municipal borough in 1901. The borough has formed part of Greater London since 1965.
Since 1965, Ealing now forms a significant commercial and retail centre with a developed night-time economy. Ealing became known as the ‘Queen of the Suburbs’ due to its greenery and its location half way between city and country.
Identified as a major metropolitan centre in the London Plan, Ealing has vast regeneration plans, and is thriving off its transformation into a metropolitan centre.
As the report highlights, Ealing’s Hanger Lane is renowned for its superb connectivity to central London, Ealing Broadway and Heathrow, and is now redefining its residential market, as offices make way for high specification apartment schemes. High quality homes are emerging that are genuinely affordable for west London.
Now, leading London property developer Galliard Homes are taking part in the regeneration of Ealing’s property market, with the redevelopment of the former River Island headquarters on Hanger Lane into Westgate House, a development of 330 studio, one and two bedroom apartments and penthouses complete with modern luxury lifestyle amenities.
First launched in October 2017, Galliard Homes have sold just over 220 of the 330 apartments. . The apartments sold to date have been purchased by a range of buyers including UK buyers, both owner-occupiers and investors, with many being sold to first time buyers and young buyers purchasing with the help of their family
This new report reveals that as part of the redefinition of the neighbourhood, large office blocks are being converted into residential use in the Hanger Lane locality, providing opportunities for those seeking a new home in west London. Perfectly situated for the world-class shopping and theatre offered by the West End.
This number of new homes currently being built around Hanger Lane station will shape a new kind of neighbourhood, the report highlights. With this proposition being supported by the already high accessibility of Ealing, the crossrail opening in 2020 and the scheduled arrival of HS2 to nearby stations will add to these levels of connectivity.
The report states that new homes in the local area of W5 have played a more significant role in overall sales volumes in recent years. Just one in ten sales over the last five years in W5 being new build, compared to just 5% in the ten years prior to the 2008 financial turndown.
Highlighted in the report, the changes taking place reflect the borough’s commitment to deliver 2,500 homes by 2020, supported by central government policies such as Help to Buy. As of October 2018, £5bn worth of developments were underway across the borough, emphasising the demand for the new supply of homes.
In addition to Westgate House, there are small schemes in the pipeline in the local area, which will create the critical mass of new homes, and will in turn help transform the neighbourhood.
The report also emphasises the strong performance of growth in house prices across Ealing. Ealing has outperformed competing boroughs closer to central London over the past five years, with a 37% growth compared to 8% in Hammersmith and Fulham, 10% in Kensington and Chelsea, and 17% in the City of Westminster.
Also highlighted in the report, is the capacity for new homes to be built in Ealing. With the focus on new home delivery in London concentrated on central locations, opportunities to buy new build in outer London have been limited. With Ealing having just 10% of new builds, in comparison to 15% in Greater London and 23% in inner London, emphasis is put on the borough to build new homes, which in turn will provide new housing opportunities for people who want to purchase in outer London.
The report asserts how the apartments at Westgate House will appeal to investors, as the studio, one and two-bedroom homes will be attractive to young professional single couples. The average rental value in W5 is £1,338 per month, although premiums could be expected for a brand-new apartment in Westgate House, with extensive on-site facilities.
As the UK’s exit from the EU continues to be negotiated, this continues to have an impact on the value of sterling, which leads to discounts of up to 12% for overseas investors.
The research divulges the extent of how favourable exchange rates currently are for international buyers. Since the EU referendum on the 23 June 2016 the value of sterling has dropped 11.6% against the Euro, 12.2% against the US Dollar 11.4% against the Hong Kong Dollar, 10.3% against the Singapore Dollar, 7.1% against the Chinese Yuan, and 8.1% against the Japanese Yen. These currency rates highlight the prime opportunity for overseas investment, as purchasers can effectively benefit from a discounted price.
The report reveals that when buying in Euros, the investor could save over €363,000, which is the equivalent of a 12.2% discount on the purchase price; when buying in US Dollar, the investor could save over $415,000, which is the equivalent of a 11.6% discount on the purchase price; when buying in the Hong Kong Dollar, the investor could save over HK$3,257,000, which is the equivalent of a 10.3% discount on the purchase price; when buying in the Singapore Dollar, the investor could save over S$59,600, which is the equivalent of a 10.6% discount on the purchase price; when buying in Chinese Yuan, the investor could save over ¥2,793,800, which is the equivalent of a 6.0% discount on the purchase price, and lastly, when buying in Japanese Yen, the investor could save over JP¥45,388,100, which is the equivalent of a 7.9% discount on the purchase price.
These figures highlight that investors buying overseas in Westgate House would save vast amounts on a brand-new apartment due to the on-going negotiations on the UK’s exit from the EU, proving now would be the ideal time to invest, proven by these figures.
The report also exhibits the availability of using the Help to Buy scheme when buying at Westgate House. The Help to Buy scheme, which was recently extended by the government, offers loads of up to 40% of a new build home in London, with no loan fees for the first five years. Westgate House apartments, which are up to £600,000, are eligible for this scheme, which provides an excellent opportunity to step onto the housing ladder. With studio apartments at Westgate House starting from just £299,000, a first-time buyer could move in with a deposit of £14,950.
Dataloft compared Westgate House to the top 15 locations, based on volumes of new flat sales in 2018, located in the western half of London. In nine locations, the average new flat price was too expensive to use Help to Buy and all of the remaining places had longer journeys to Holborn.
Westgate House, just 26 minutes away from Holborn, provides first time buyer costs of £314,950, compared to Dollis Hill & Cricklewood which has a 33 minute journey to Holborn, and a first time buyer cost of £19,918, Harrow, which has a 40 minute journey to Holborn and a first time buyer cost of £20,375, Colindale, which has a 30 minute journey to Holborn and a first time buyer cost of £24,543, and lastly, Streatham Hill, which has a 46 minute journey to Holborn and a £43,806 first time buyer price.
In terms of connectivity, the research indicates the prime location of Westgate House. Just a 5-minute walk from Hanger Lane Underground and a 10-minute cycle to Ealing Broadway, Westgate House, already highly accessible, with the advent of Crossrail and HS2 will see new levels of connectivity both within London and beyond.
Just 21 minutes to Bond Street, 31 minutes to Bank, 42 minutes to Canary Wharf and 31 minutes to Kings Coss St pancreas, Westgate House is in the ideal location for commuters travelling to central London.
As the research points out 42% of tenants in the local Ealing area are aged between 18 and 29 years, this could be due to Ealing’s vibrant nature. Westgate House is located just 1.5 miles north of Ealing’s town centre and residential market, where the average price of a home rose in some areas by 11% to £836,600 in 2018. Shoppers enjoy Ealing’s diverse retail offer, with 25 million people per year visiting the Broadway Shopping Centre. New retailers in Ealing continue to be attracted, at a time when many town centres are struggling, no doubt in anticipation of Crossrail
Ealing is home to Ealing Studios film Production Company, which is set to expand by 82,000 sqft, and the £50m University of West London Campus. Once referred to as ‘Queen of the Suburbs’ due to its tree-lined streets, Ealing is one of London’s greenest boroughs. Today, 15% of its land area is given over to parks or open space and residents and visitors of the town can enjoy the nearby open spaces of Ealing Common, Walpole Park and Lammas Park.
David Galman, Director of Sales at Galliard Homes said “This new report, undertaken by Dataloft for Galliard Homes, highlights how the regeneration of the Ealing residential market is transforming its neighbourhood. This insight into the range of factors that have contributed to this transformation sheds light onto the many reasons investing into a new development in this area seemed like an ideal addition to the Galliard Homes portfolio”