Ealing Property Owners Reap £19,658 Yearly Gains Since 2001

As we are now nicely into 2024, it's certain the Ealing 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 Ealing house prices.

Since the start of the Millennium (Jan 2001), the average Ealing homeowner has seen their property’s value rise by an average of 167%.

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 Ealing 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 Ealing and the profit made by each type, it makes interesting reading:

• Overall Average for All Homes in Ealing. The average price of all homes in Ealing in 2001 was £272,405. Now it's 2024, and it has risen to £724,534. This is a total profit of £452,129 (which is £19,658 profit per year per home or an annual growth of 7.3% per year).

• Apartments in Ealing. The average price of an apartment in Ealing in 2001 was £181,838. Now it's 2024, and it has risen to £383,936. This is a total profit of £202,098 (which is £8,787 profit per year per home or an annual growth of 4.9% per year).

• Terraced/Town Houses in Ealing. The average price of a terraced/town house in Ealing in 2001 was £276,967. Now it's 2024, and it has risen to £1,002,890. This is a total profit of £725,923 (which is £31,562 profit per year per home or an annual growth of 11.4% per year).

• Semi-Detached Homes in Ealing. The average price of a semi-detached home in Ealing in 2001 was £352,834. Now it's 2024, and it has risen to £805,546. This is a total profit of £452,712 (which is £19,683 profit per year per home or an annual growth of 5.6% per year).

• Detached Homes in Ealing. The average price of a detached home in Ealing in 2001 was £662,736. Now it's 2024, and it has risen to £2,589,504. This is a total profit of £1,926,768 (which is £83,773 profit per year per home or an annual growth of 12.6% per year).

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.

• Overall Average for All Homes in Ealing. The total 'real profit' (i.e., after inflation has been removed) for the average Ealing home is £251,602 for the last 23 years. This equates to £10,939 'real' profit per annum.

• Ealing Apartments. The total 'real profit' (i.e., after inflation has been removed) for the average Ealing apartment is £112,464 for the last 23 years. This equates to £4,890 'real' profit per annum.

• Ealing Terraced/Town Houses. The total 'real profit' (i.e., after inflation has been removed) for the average Ealing terraced/town home is £403,964 for the last 23 years. This equates to £17,563 'real' profit per annum.

• Ealing Semi-Detached Homes. The total 'real profit' (i.e., after inflation has been removed) for the average Ealing semi-detached home is £251,927 for the last 23 years. This equates to £10,953 'real' profit per annum.

• Ealing Detached Homes. The total 'real profit' (i.e., after inflation has been removed) for the average Ealing detached home is £1,072,214 for last 23 years. This equates to £46,617 'real' profit per annum.

Thus, the annual profit for an average Ealing home,

adjusted for inflation, stands at £10,939.

I wanted to illustrate that despite the 2008/09 Credit Crunch property market crash, which saw Ealing property values plummet by 15% to 20% over 18 months, homeowners in Ealing have still fared better over the long term than those renting.

Looking ahead, a common question I get asked is about the

future trajectory of the Ealing property market.

The primary influence on maintaining house price growth in Ealing 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.

This can only be good news for Ealing homeowners.

What about Ealing 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 Ealing landlords remain keen on expanding their portfolios in the long term.

The younger generation in Ealing 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, Ealing buy-to-let landlords must adopt more thoughtful strategies to maintain profitable returns from their investments.

As an Ealing buy-to-let landlord, the question for you is how to

ensure this growth continues.

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 Ealing, 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.

Author Homesearch