From Average to Awesome: The Surprising Rise of Hounslow's Property Prices
To find an up-and-coming property to invest in, don't look past the properties in Hounslow, West London. According to recent statistics, this generally unheard-of borough has seen an increase in the average home price over the last few years. This development has been pleasant news for the families who have purchased houses here in the past few years. In this blog post, we will take a closer look at why this may be, and hopefully, this will answer any questions you may have. Read on if you want to take advantage of this incredible opportunity!
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Why Hounslow is becoming a top choice for property investors
Hounslow is quickly emerging as a top choice for property investors in the capital, and it's easy to see why. The local government has made a significant investment of over £768 million in the area since 2016, demonstrating a commitment to its growth and development. The Hounslow: Prosperity and Place document was approved by the Hounslow Cabinet, further cementing the area's appeal to investors.
One of the key factors driving investment in Hounslow is its youthful population. With 25% of the population being under 18, Hounslow surpasses London's average of 21.5%. This is significant because it indicates a growing demand for housing, presenting a fantastic opportunity for property investors.
Speaking of housing, Hounslow has set an ambitious target of delivering 18,000 new homes over the next 10 years. That's an average of 1,800 homes per year. While the five-year average has been slightly lower at 1,168 new homes per year, it still showcases the area's commitment to meeting housing demands.
Additionally, property prices in Hounslow have soared in the last decade, almost doubling with an impressive 90% increase. This rapid growth is a clear sign of the area's potential for strong returns on investment.
Transportation links also play a crucial role in Hounslow's appeal. With just a short 13-minute Tube ride to Heathrow Airport from Hounslow Central Underground, residents have easy access to one of the busiest airports in the world. With 1,300 flights per day, this convenience is a bonus for both residents and potential tenants.
Education is another area where Hounslow shines. An impressive 95% of schools in the borough are rated Outstanding or Good by Ofsted, making it an attractive choice for families and renters looking for quality education options.
Furthermore, Hounslow's thriving economy is closely tied to air travel, making it London's second-fastest-growing economy in 2019. This is yet another indication of the area's potential for long-term growth and stability.
Population growth in Hounslow
Graph and figures taken from office of national statistics
In recent years, Hounslow has experienced remarkable population growth, solidifying its position as an attractive area for property investors. From 2011 to 2021, the population size in Hounslow increased by an impressive 13.5%, reaching a total of 288,200 residents. This growth surpasses the overall increase for England, which stood at 6.6%, with a population growth of 3.5 million to 56,489,800.
What's interesting is that neighbouring areas such as Hillingdon and Ealing have also seen substantial population increases, with growth rates of 11.7% and 8.5% respectively. Comparatively, Richmond upon Thames experienced a more modest increase of 4.4%, while Hammersmith and Fulham saw a smaller growth rate of just 0.4%.
Notably, Hounslow's population increase exceeds the growth rate for London as a whole, which stands at 7.7%. This upward trend in population showcases the growing appeal and demand for housing in Hounslow.
To visualise this growth, a bar chart can be used to display every local authority area in England, with the legend running from the largest percentage decrease to the highest percentage increase in population. Hounslow would be highlighted, emphasising its significant population growth and its status as an up-and-coming area for property investment.
Top neighbourhoods in Hounslow for property investment
If you're considering investing in property in Hounslow, you'll be pleased to know that several neighbourhoods offer great value and potential. One such area is Bedfont, which was once a quaint village but has now transformed into a suburb of Feltham. This neighbourhood is known for its good-value properties and is a popular choice among property investors.
Brentford is another neighbourhood worth considering. It has a bustling business and commercial hub, with excellent road and rail links. This area also offers easy access to green spaces, making it a perfect blend of urban convenience and natural beauty.
For those looking for a vibrant town centre with a unique character, Chiswick is the place to be. As Hounslow's second-largest town centre, it boasts a wide range of independent shops, bars, and eateries. The lively atmosphere and thriving community make it an attractive option for property investors.
Cranford, located to the northwest of Hounslow, is another neighbourhood worth exploring. It was once a village and is now a popular choice for its proximity to Heathrow Airport. With excellent transport links and easy access to the airport, Cranford offers great potential for property investors.
If you're looking for a town with a diverse range of amenities, Feltham is an excellent choice. It has a bustling town centre with a good range of shops and leisure facilities. Additionally, Feltham is home to a major commercial and light industrial area, providing opportunities for business investment.
Hanworth, a suburb of Feltham, is another area that offers great value for property investment. It is located close to local business parks and offers a range of affordable properties, making it an attractive option for investors.
Heston is a mixed residential and commercial area with good road links, making it convenient for commuting. This neighbourhood offers a variety of properties and is an excellent choice for those seeking a well-connected location.
Hounslow itself is the largest town in the area and offers a wealth of amenities. It has excellent shopping facilities, leisure activities, and transport links, making it an attractive place to live and invest in property.
Lastly, Isleworth is a historic small town located on the River Thames. It offers good commuter links and is situated close to the fashionable area of Richmond upon Thames. With its picturesque location and excellent transport connections, Isleworth is an area that shouldn't be overlooked by property investors.
Overall, Hounslow offers a range of neighbourhoods with different characteristics and opportunities for property investment.
When it comes to property prices in Hounslow, the numbers tell a promising story. The average property price paid in Hounslow is currently £591,799, according to data from June 2022. In the past year alone, property prices in Hounslow grew by an impressive £14,762, reflecting a 2.6% increase from June 2021 to June 2022.
But the growth doesn't stop there. Over the past decade, average property prices in Hounslow have experienced a steady climb, with prices increasing by 5.2% per year from June 2012 to June 2022. This consistent growth suggests a positive trend for property investors.
If this upward trajectory continues, it's projected that by 2025, the average property price in Hounslow could reach £725,000. That's an exciting prospect for anyone looking to invest in the area.
Analysis of property prices in Hounslow and projected growth
Taking a closer look at specific property types, detached house prices in Hounslow increased by 46% from 2012 to 2022, while semi-detached house prices rose by 48%. Terraced house prices saw a more modest growth of 39.8%, and flat prices experienced a significant surge of 60% during the same period.
These figures demonstrate the potential for strong returns on investment in Hounslow, making it an attractive destination for property investors.
Regeneration in Hounslow and its impact on the local property market
"We’ve set out plans to take a strong leadership role, driving long-term transformation and regeneration," says Karen Mercer, Director of Regeneration and Economic Growth at the council. This commitment to regeneration is evident in the Hounslow: Prosperity and Place framework, which was approved by the council’s cabinet in January 2022. The council is actively working with the resident and business communities to create town centre visions, ensuring that Hounslow thrives both economically and socially.
One key player in Hounslow's regeneration is Bugler, an award-winning, family-owned property developer with 40 years of industry experience. Bugler has been instrumental in the development of Hounslow, with their most recent project on Bell Road set to provide 127 new homes for the local community. They have also collaborated with several Registered Providers (RPs), including A2Dominion, Notting Hill, MTVH, and SBHA, to build new homes throughout the Borough.
The commitment to regeneration is not limited to housing developments. Recently, a total of £2.5 million from the first two rounds of the Mayor's Outer London Fund, along with £1.2 million from Hounslow Council, has been allocated to help Hounslow town centre attract more visitors and increase trade. This investment aims to capitalise on the area's proximity to Heathrow and the anticipated future growth in West London.
The impact of regeneration on the local property market is significant. As Hounslow undergoes transformation and attracts more visitors, property values are likely to rise, providing an excellent opportunity for property investors in the long term. The regeneration efforts also enhance the overall desirability of Hounslow as a place to live, making it an even more attractive destination for both residents and investors alike.
Expected rental yields in Hounslow
When it comes to expected rental yields in Hounslow, investors will be pleased to know that the average long-let gross yield in the area is a respectable 4%. But let's dig deeper into some specific neighbourhoods within Hounslow.
In TW3, the average rental price is £391, with an average asking price of £420,901 and an average price per square foot of £514. This neighbourhood offers a solid opportunity for investors with its attractive gross yield.
If you're looking for even higher rental yields, TW1 might be of interest. With a gross yield of 21%, the average rental price is £761, while the average asking price stands at £736,786. The average price per square foot in TW1 is £467, making it an area worth considering for those seeking a higher return on investment.
TW2 also offers a strong gross yield of 16%. The average rental price in this neighbourhood is £661, with an average asking price of £655,326 and an average price per square foot of £538. Investors can take advantage of this relatively high yield in TW2.
In addition to long-term lets, Hounslow attracts many visitors and commuters, particularly due to its proximity to Heathrow Airport. This makes the area attractive for short-term letting, with nightly rates ranging from £70 to over £150. This alternative model can significantly increase rental yields, providing an additional opportunity for investors in Hounslow.