|Hammersmith Property Prices Continue to Climb|
New flat developments drive high transaction levels in local market
Property prices in Hammersmith continued to climb in the third quarter of 2014, with the average price up by 18.8% to £823,308.
The continue rise in the average price of sales in the W6 post code area reported to the Land Registry is all the more notable given the increased proportion of flats in the local market. During the three month period nearly three quarters of transactions were for flats. The headline rise is therefore masking an even greater increase in the price of houses. The average cost of a semi-detached house for instance is creeping close to £2 million.
Sales of flats showed a huge increase, up by 48.5% from 99 in the previous quarter to 147 during this period. Flat prices were also up by 7.2% from £558,070 to just a shade under £600,000 at £598,107.
This surge in flat sale is partly due to the number of local developments selling new apartments, including Fulham Reach on Hammersmith's Riverside, Sovereign Court in the centre of town and Ashlar Court by Ravenscourt Park.
Sales of terraced houses also increased from 38 to 48, with prices up by 6.2% from £1,297,587 to £1,377.657. And while only six semi-detached houses were sold, the average price was also up, jumping from £1,747,333 to £1,905,946.
London property prices generally are up by 18.4% to £460,521 in the year to end September according to the Land Registry although they are slightly down from the level seen at the end of August. The a average house price in England and Wales is now £177,299 compared with the peak of £181,324 in November 2007. This is a rise of 7.2% compared with the same month last year.
The most up-to-date figures available show that during July 2014 the number of completed house sales in England & Wales increased by 7 per cent to 79,214 compared with 73,749 in July 2013. The number of properties sold in England and Wales for over £1 million in July 2014 increased by 19 per cent to 1,439 from 1,207 in July 2013.
The Royal Institution of Chartered Surveyors (RICS) are striking a cautious note pointing out that demand for property in London has been down for six months in a row. Prices are also falling in more recent months according to their survey which covers sales up to the end of October.
London is experiencing a fall in buyer demand with 62% more chartered surveyors reporting a fall over the last month. Significantly, a little more stock is now coming onto the market with 15% more chartered surveyors seeing a rise in new instructions up from 3% more last month. The RICS say that this points to the market in London moving towards a more sustainable position and they remain modestly positive on a twelve month view.
In London, tenant demand was broadly flat over the last quarter. Despite this, rents are still expected to continue to move higher albeit by a little less than 2 per cent over the next twelve months.
Simon Rubinsohn, RICS Chief Economist, said, 'The flatter trend in the market is partly a reflection of potential buyers becoming a little more cautious about making a purchase as more stringent lending criteria has made it harder to access mortgage finance. An increasing awareness of the approaching general election also appears to be contributing to the softer market if the responses to the latest survey are anything to go by. However, with new instructions still flat at a headline level as has been the case for most of the last year it seems implausible that the dip in demand will result in very much of a decline in house prices.
A detailed listing of properties sold recently in the area will be appearing in a forthcoming edition of the Hammersmith newsletter.
Source: Land Registry
November 28, 2014