Published: 19/04/2024 By Chris Watkin
As we are now nicely into 2024, it's certain the Twickenham housing market over the last 18 months has been a little more restrained than 2020, 2021 and early 2022, and we 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 Twickenham house prices.Since the start of the Millennium (Jan 2001), the average Twickenham homeowner has seen their property’s value rise by an average of 202%. This is important as house prices are a national obsession and tied into the health of the UK economy. Most of that gain has come from the overall growth in Twickenham property values, while some of it will have been enhanced by extending, modernising, or developing their Twickenham home.
Looking at the different types of property in Twickenham and the profit made by each type, it makes interesting reading:
- Overall Average For All Homes in Twickenham. The average price of all homes in Twickenham in 2001 was £223,931. Now it's 2024, it has risen to £673,204. This is a total profit of £449,273 (which is £19,534 profit per year per home or an annual growth of 8.8% per year).
- Apartments in Twickenham. The average price of an apartment in Twickenham in 2001 was £140,451. Now it's 2024, it has risen to £316,061. This is a total profit of £175,610 (which is £7,635 profit per year per home or an annual growth of 5.5% per year).
- Terraced/Town Houses in Twickenham. The average price of a terraced/town house in Twickenham in 2001 was £203,959. Now it's 2024, it has risen to £723,490. This is a total profit of £519,531 (which is £22,588 profit per year per home or an annual growth of 11.1% per year).
- Semi-Detached Homes in Twickenham. The average price of a semi-detached home in Twickenham in 2001 was £295,562. Now it's 2024, it has risen to £717,146. This is a total profit of £421,584 (which is £18,330 profit per year per home or an annual growth of 6.2% per year).
- Detached Homes in Twickenham. The average price of a detached home in Twickenham in 2001 was £245,504. Now it's 2024, it has risen to £880,129. This is a total profit of £634,625 (which is £27,592 profit per year per home or an annual growth of 11.2% 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 consider inflation since 2001, the true ‘spending power’ of that profit has been lower.
- Overall Average For All Homes in Twickenham. The total 'real profit' (i.e., after inflation has been removed) for the average Twickenham home is £250,013 for the last 23 years. This equates to £10,870 'real' profit per annum.
- Twickenham Apartments. The total 'real profit' (i.e., after inflation has been removed) for the average Twickenham apartment is £97,724 for the last 23 years. This equates to £4,249 'real' profit per annum.
- Twickenham Terraced/Town Houses. The total 'real profit' (i.e., after inflation has been removed) for the average Twickenham terraced/town house is £289,110 for the last 23 years. This equates to £12,570 'real' profit per annum.
- Twickenham Semi-Detached Homes. The total 'real profit' (i.e., after inflation has been removed) for the average Twickenham semi-detached home is £234,604 for the last 23 years. This equates to £10,200 'real' profit per annum.
- Twickenham Detached Homes. The total 'real profit' (i.e., after inflation has been removed) for the average Twickenham detached home is £353,158 for the last 23 years. This equates to £15,355 'real' profit per annum.
Thus, the annual profit for an average Twickenham home, adjusted for inflation, stands at £10,870.
We wanted to illustrate that despite the 2008/09 Credit Crunch property market crash, which saw Twickenham property values plummet by 15% to 20% over 18 months, homeowners in Twickenham have still fared better over the long term than those renting.
Looking ahead, a common question we get asked is about the future trajectory of the Twickenham property market. The primary influence on maintaining house price growth in Twickenham 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 Twickenham homeowners.
What about Twickenham 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 Twickenham landlords remain keen on expanding their portfolios in the long term.
The younger generation in Twickenham 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, Twickenham buy-to-let landlords must adopt more thoughtful strategies to maintain profitable returns from their investments.
Since the 1990s, generating profits from buy-to-let property investments was straightforward, as a Twickenham buy-to-let landlord, the question for you is how to ensure this growth continues. Moving forward, with changes in the tax laws and the balance of power, achieving similar returns will be more effortful. Over the past decade, we’ve observed the evolution of agents from mere rent collectors to strategic portfolio managers.
We, along with a select few agents in Twickenham, 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 us directly at no cost or obligation.