Ealing is considered one of London’s main commuter transport hubs, with seven underground stations serving the area. The main station is Ealing Broadway providing direct access to the central and district line, as well as the mainline rail link to Paddington. When Crossrail is operational, it will take only 11 minutes to travel to Bond Street, 18 minutes to Liverpool Street and 25 minutes to Canary Wharf.

The housing stock of Ealing (Figure 1) is characterised by Victorian and Edwardian terraced, detached and semi-detached homes. However change is underway and the area is witnessing considerable investment into new homes, with well known developments such as Dickens Yard and The Apex currently under construction. The levels of development should act as a catalyst to unlocking the latent value of the housing stock in surrounding locations by attracting demand from increasingly affluent occupiers.

^{Source: Land Registry}

Property prices

House prices in central Ealing are higher than the average of the wider borough. The average sale price for all dwellings in the 12 months to May 2015 was £631,465 which is 23.4% more than the average across the borough of Ealing over the same period.

The house price premium for Ealing is seen across all property types. The average sale price of a terraced house is £718,004 in central Ealing compared to £562,801 across the borough over the 12 months to May.

However, when compared to more established prime locations such as Chiswick, Ealing offers good value for money, especially for families looking for a larger property. Comparing the cost of a semi-detached house in Ealing and Chiswick shows that you would pay on average 46% less to buy in Ealing. With Ealing looking more affordable on this measure it is seen as an attractive option for young affluent families given its amenities and excellent state and independent schools.

House price growth for prime Ealing properties has been strong over the past year compared to nearby prime markets. Across all of prime west London, prices have only marginally increased by an average of 0.5% over the year to June 2015. Over the same period, prime property in Ealing has increased by 3.9%.

The rental market

As seen in the sales market, rental values in Ealing are also higher than the borough wide average. In central Ealing, the median monthly rent is £1,396, which is 11% higher than the average across the borough according to Rightmove.

However, it is lower than the average for nearby Chiswick where the median monthly rent is £1,741. Across Ealing, the average rent varies from around £847 per month for a studio to over £2,200 per month for a four-bed property.

Demand

The demand for prime property in the area comes from a number of sources. While domestic buyers dominate, international residents are an important source of demand for the prime housing market across London, accounting for around 39% of buyers since 2013. In the prime markets of west London, 34% of buyers have been from overseas over the same period, with those from Europe the most prominent.

Good transport links to a number of key employment hubs are an important part of Ealing’s appeal. The largest employment industry for people living in Ealing is the Professional, Scientific and Tech sector closely followed by the Information and Communication sector accounting for 13.1% and 12.7% of employees respectively, according to the 2011 Census.

Over the next five years, Oxford Economics forecasts that employees in the Professional, Scientific and Tech industry will increase by 15.6% to become the largest employment industry in central London. Ealing is well placed to draw on the newly created wealth that will result, as Tech buyers in particular look to emerging and maturing prime markets.

Investors

Investment buyers have been attracted to the area due to strong tenant demand. According to the 2011 Census, 32.6% of households in Ealing are in the private rented sector, significantly higher than the average across London of 25.1%.

Demand for rental property comes from a wide range of tenants, including families, couples and professionals. Corporate relocations play an increasingly important part in west London’s prime rental market. Over the first half of 2015, 67% of tenants were renting due to employment relocation compared to 55% in 2014. With UK tenants only accounting for 44% of tenants, the international nature of the prime west London rental market is evident, with the highest proportion of international tenants originating from Western Europe, accounting for 31%.

Source: Savills Research