A Deep Dive into Finchley Property Statistics over the Last Few Years

Finchley Church
Photo Credit: David Howard

Finchley is one of North London’s most popular residential areas. It’s changed beyond recognition in the last few centuries; from an agricultural village famed for its hay, to one of the capital’s best-connected, family-friendly locations.

You’ll get a sense of its history as you wander through each of the area’s districts; East Finchley, North Finchley, and Finchley Central – sometimes called Church End. There are plenty of attractive Victorian and Edwardian townhouses and some good-sized 1920s homes too. It’s a diverse area, where modern apartment blocks sit alongside multimillion pound mansions and this is what gives the place its distinct personality.

If you’re thinking of moving to Finchley you’ll want to find out more about the local property market and how prices have changed over the years. This useful guide outlines the sales trends since 2000.

Finchley’s property market in the last twenty years – a quick run-through

The average price of a property in Finchley has tripled since 2000; a trend that’s in-keeping with London’s housing market in general. This growth has been relatively steady, though certain events have made prices dip slightly, such as the EU referendum in 2016 and the housing crisis of 2008. However, Finchley’s market has proved resilient throughout and property values have swiftly recovered each time.

Although house prices have risen, Finchley remains more affordable than other parts of North London and many apartments are priced below £500,000. This makes it a good area for first-time buyers and for families searching for a larger property within their budget.

2000 to 2008 – Finchley’s property market takes off

Finchley’s housing market experienced notable growth at the start of the millennium. In 2000, the average price for a house was £278,836. By 2008, this had risen to £583,270; an impressive increase of £304,434. Apartment prices didn’t rise quite so steeply, but average values certainly increased by a significant margin. In 2000, the average flat cost £138,321; eight years later, the average price was £277,492.

The main reason for this rapid rise in price was increased demand. Finchley was fast becoming a major investment hotspot and sales volumes reflected this. In 2000, 952 houses and 1125 flats were sold and the market hit its peak in 2002, with 1049 house and 1246 apartment sales. Demand remained high right through until 2008.

However, in 2008, Finchley’s upward trajectory was interrupted by the financial crisis – like many other towns and cities in the UK.

2008 – a global crisis takes its toll

East Finchley
Photo Credit: David Howard

The term ‘credit crunch’ became the buzzword for 2008 as a global financial crisis hit the UK. It had considerable impact, especially for the property market. Estate Agents reported that average property prices dropped by 15.9% over the course of the year – with prices falling steadily for 14 months in a row.

In response to the situation, mortgage lenders tightened their terms. Homebuyers were no longer able to capitalise on low-deposit mortgages and volumes of sales went down as a result. Additionally, job losses were on the rise which meant that fewer people were willing to invest in property.

London was affected by the financial crisis but its housing market was surprisingly resilient and many properties in the capital only experienced moderate reductions in price. In fact, average property values remained the highest in the country.

Finchley was impacted to an extent, in that average house prices dropped from £583,270 in 2008 to £525,840 the following year. However, the reverse happened with apartments. In 2008, the average flat cost £277,492 but in 2009 this had risen to £295,290. This is partially because new developments were being built in the area at the time and because buyers favoured the affordability of apartments during this time of financial uncertainty.

While prices remained relatively stable, sales volumes didn’t. In the year before the housing crisis, 909 houses and 1139 flats were sold. In 2008, this had fallen to just 386 house and 540 apartment sales.

Recovering after the crisis – a slow return to normality

Property prices remained stable in Finchley despite the fact many other parts of the UK were experiencing a downturn. In fact, by 2010, house prices had risen again – this time to a then record-breaking £615,620. By contrast, the cost of an average apartment took a slight dip, falling to £280,178. However, by 2012, both house and flat prices were rising steeply once more.

Sales volumes were still low though. In 2010, numbers seemed to be picking up once more with 667 houses and 637 flats being sold. The following two years saw sales start to fall again (though only slightly) and it wasn’t until 2013 that the market started to pick up.

The upturn in sales may have been caused by the introduction of the Help to Buy scheme (2013). This enabled buyers to invest in property they otherwise wouldn’t have been able to afford; something that proved useful for those wanting to move to Finchley. The removal of stamp duty for first-time buyers may also have encouraged sales.

By 2014, house prices in Finchley were climbing dramatically once more. At this point, an average house in the area cost £806,285. The year after, this rose to £926,667 – not far off the £1million mark. Apartment values increased too, though far more moderately; from £381,662 in 2014, to £414,310 in 2015.

The results of the EU referendum and its effect on the market

Finchley Houses
Photo Credit: David Howard

The UK’s housing market looked as though it had recovered completely by 2016. However, the results of the EU referendum shocked the nation and the Brexit verdict brought average house prices back down again.

Estate agents across the country reported major property value reductions, with one agent claiming he was “trying to do deals 10% below where they were a week ago”. Average London prices fell by around 10 to 15% in a short space of time and the market experienced serious instability as a result.

Finchley’s property prices were affected by the Brexit decision, decreasing from £926,667 in 2015, to £899,593 the year after. Once again, apartments bucked the trend and rose in value from £414,310 to £430,616 in the same period. Overall, average property prices fell by around £10,000 – which compared to the rest of the country wasn’t too much.

Numbers of property sales also fell. In 2015, 613 houses and 788 flats were sold, but by 2016 this had reduced to 530 house and 728 apartment sales. This mild downward trend would continue for the next few years.

In the aftermath of the Brexit result

Some parts of London struggled to recover after the referendum despite the market being partially buoyed by overseas investors. By contrast, Finchley’s property market remained relatively stable from 2016 onwards.

For example, in 2017, just a year after the vote, house prices in Finchley had risen to an average of £949,047. This beat the previous record of £926,667 back in 2015. These elevated prices were somewhat unsustainable though and in 2018 they fell slightly to £926,414. In 2019, prices went down again but remained high with an average house costing £917,460.

Much the same trend was evident in apartment prices. In 2017, they hit a high of £492,675; then the following year they’d decreased to £466,557. By 2019 the average price of a flat in Finchley was £442,502.

Numbers of sales also decreased slightly. In 2017, 518 houses and 696 flats had been sold. The year after this had dropped to 516 houses and 612 apartments and the year after, total sales volumes had reduced again – this time to 521 houses and 505 flats. However, these were still respectable levels of transactions given the UK’s housing market was experiencing uncertainty at the time.

The impact of the COVID-19 pandemic

Finchley Roofs
Photo Credit: David Howard

The next major event to disrupt the UK’s property market was the COVID-19 pandemic. Unlike the referendum, which the industry had suspected was coming, coronavirus hit without warning and the resulting lockdowns had a devasting impact on the country’s economy.

During the first lockdown, all house viewings were banned. With little time to arrange virtual viewings, Estate Agents were left in limbo and volumes of sales plummeted. Property prices fell as a result, in every part of the country.

COVID also affected employment. Thousands of people found themselves out of a job and those affected were understandably reluctant to tie themselves into the financial commitment of a house purchase.

In the summer of 2020, the situation suddenly changed. In a bid to stimulate the market, Chancellor Rishi Sunak introduced a stamp duty break for all property purchases (priced under £500,000). This resulted in a surge of interest and property prices rose in most locations across the UK including Finchley.

The stamp duty incentive is scheduled to end on March 31st 2021 and this may further impact sales volumes and prices in Finchley, especially as (at the time of writing) the UK is going through a third lockdown.

What lies ahead for Finchley’s housing market in 2021?

At the end of 2020, the outlook for London’s property market in 2021 was uncertain. However, the rollout of mass vaccinations has resulted in most industry experts updating their predictions. It’s now anticipated that most people will be vaccinated against COVID-19 by September and that once the threat of the virus is over, the market will swiftly normalise again.

Some experts also predict a ‘Brexit bounce’ in the first quarter of 2021, which may boost sales temporarily. One thing looks likely though; Finchley’s property market, like the rest of London’s, should pick up again during the second half of the year. This means that prices should rise once more and continue increasing as the years go on.

As such, if you’re considering buying a home in Finchley, it’s a wise move to invest sooner rather than later. Property prices are lower than they were a few years ago which means that savvy investors can get a home at a reduced price. This offers the potential to make an elevated profit from capital growth in the future.

What will happen to Finchley house prices in the next five years?

West Finchley Flats
Photo Credit: David Howard

At present, most industry experts are optimistic about the future of London’s property market. Once the capital has recovered from the seismic impact of Brexit and COVID-19, it’s anticipated that prices will rise sharply once more, with one forecast predicting that London prices will grow by as much as 21% over the next five years.

A popular area like Finchley is almost certain to remain desirable in the years to come. Though volumes of sales may take a while to pick up again, it’s probable that property prices will continue to increase for the foreseeable future.

It’s always difficult to say with any certainty what the future may hold. However, based on the presumption that no other major events happen during the next five years, it’s safe to predict that investing in property in Finchley right now may reap financial rewards later on.

Are you ready to move to Finchley?

Finchley is a great place to live, for people of all ages. It’s well-connected with train stations taking commuters to Central London plus its close proximity to the North Circular and the M1. If you’d like to buy a property in Finchley, get in contact with our team to find out more about the area. We’ve got a wide range of properties on our books, from desirable studio apartments to spacious family homes.

To see our list of properties currently available to buy in Finchley, start your search here.