Hammersmith Property Market Update - February 2023

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Hammersmith Estate Agent, Horton and Garton consider the latest local market data and the outlook for the month ahead. (Ad)

With it recently reported that over a third of all homes on the market, with a price tag of over £1million, had experienced a price reduction, local sellers might be wondering what’s best on strategy and pricing when selling in 2023.

Hammersmith property prices

Research recently uncovered that, based on a number of factors, Hammersmith and Fulham’s property market is one of the most recession-proof in the country. By identifying areas where, for example, homemovers were less reliant on lending and therefore likely less impacted by changes to interest rates, Garrington Property Finders ranked 96 local authorities across the UK with Hammersmith and Fulham being placed 8 th, near the very top of the most resilient locations in the country.

Table Source: Garrington Property Finders

The Hammersmith housing market continues to have a shortage of certain types of properties available for sale compared to the number of buyers seeking homes. This said, given the current climate, buyers are unwilling to overpay for properties.

More up-to-date data supplied by LonRes was included in private bank Coutt’s latest Prime Property report focusing on property of over £1million in value, they found there had been a net fall of 2% in prices across the prime markets in Chiswick and Hammersmith over the past 12 months.

In the same research they found that 34.7% of all prime London homes listed on the market had experienced a price reduction and that on average buyers had been able to negotiate a 7.7% reduction from the listing price.

In terms of property prices in Hammersmith, our key message to vendors and buyers is to be realistic. The market is not weighted in favour of either party but requires a fair approach.

What does this mean for the W6 property market?

Undeniably there has been a slight adjustment in the local W6 property market with the sharp rise in interest rates having impact throughout the latter stages of 2022. The large price increases witnessed in certain parts of the West London market over the past few years have been fuelled by an under-supplied house market.

Motivated buyers are back out looking for homes in Hammersmith in far greater numbers. Sellers, seeking to make plans to move without pressure, are opting to sell discreetly off-market and in January we have seen several properties achieve full and fair prices within weeks of becoming available away from the open market.

The Bank of England has now raised the base rate further to 4.0% but have predicted a much less bleak outlook than previously feared.

What does the base rate rise mean to borrowers who are not on a fixed rate mortgage? According to TotallyMoney, the 0.5% hike will add £52 a month to an average mortgage. This figure is based on the average UK property costing £270,708 with a 75% loan-to-value and a mortgage with a 25-year term.

Mortgage rates have fallen considerably in recent months given the competition in the mortgage market those borrowing might encounter more favourable rates now despite the base rate rising.

Moving home in 2023

Hammersmith continues to be one of the most desirable places to live in London meaning demand for property to buy or rent continues to be strong.

To discuss your plans to sell or let property in W6 get in touch with our local team, without obligation.

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February 3, 2023