Earnest Ealing

The transformation of Ealing’s residential property market is redefining the neighbourhood says a new report published by Dataloft, commissioned by Galliard Homes. A project to deliver affordable luxury housing in West London, is defined by 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, enhancing the appeal to foreign investors (due to favourable currency rates) and creating opportunities to buy new-build properties in outer London.

The report highlights the fantastic connections from Ealing’s Hanger Lane to central London, Ealing Broadway and Heathrow and the imminent arrival of crossrail opening in 2020 and HS2 to nearby stations.

As well as the redefinition of its residential market, as offices make way for high specification apartment schemes and high quality homes are emerging that are genuinely affordable for west London and perfectly situated for the world-class shopping and theatre offered by the West End.

As part of the redefinition of the neighbourhood, large office blocks are being converted into residential properties in the Hanger Lane locality, providing opportunities for those seeking a new home in west London.

Thus, the amount of new homes currently being built around Hanger Lane station will shape a new kind of neighbourhood, the report states.

Leading London property developer Galliard Homes are involved 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.

David Galman, Director of Sales at Galliard Homes says, “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”

First launched in October 2017, Galliard Homes have sold just over 220 of the 330 apartments. The apartments that have currently been sold, have been purchased by a range of buyers including UK buyers, both owner-occupiers and investors, first time buyers and young buyers.

In addition to Westgate House, there are other small schemes in the pipeline for the local area, which will in turn help transform the neighbourhood.

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, As of October 2018, £5 billion worth of developments were underway across the borough, emphasising the demand for the new supply of homes.

The report also emphasises the strong performance of growth in house prices across Ealing - the borough 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.

Despite the strong growth in house prices, Ealing has 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 reveals the extent of how favourable exchange rates are for international buyers. Since the EU referendum on the 23^rd of 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. For example; 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.

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 loans of up to 40% of a new build home in London, with no loan fees for the first five years.  Westgate House apartments, priced at up to £600,000, are eligible for this scheme, providing an excellent opportunity for prospective buyers 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.

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.