|Average Hammersmith Home Now Costs Over a Million|
With the price of flats doubling over the last year
The average property price in Hammersmith soared above the million mark in the first three months of 2015, up by 39% over the same period last year.
The average climbed from £979,972 in the previous quarter to £1,011,362, up 3.2%.
This rise is all the more remarkable because no detached or semi detached properties were sold between January and March, probably because of concerns over a possible mansion tax.
The main factor driving up property values is a doubling of flat prices over the last year. In this quarter they were up 10.6%, from £813,660 to £899,848, which makes it conceivable that the average flat price could soon reach one million pounds.
This area includes St George's giant riverside development Fulham Reach, where flats currently available to buy off-plan are priced between £819,950 for one bedroom and
£3,699,950 for three bedrooms.
Local estate agents predict that is all set to change after a decisive election. Winkworth CEO Dominic Agace says: " “There are a lot of people out there who were just waiting for the election result. Now that the result is known, they will be putting their house on the market."
Peter Rollings, CEO of Marsh and Parsons says: "The top-end market will be breathing a huge sigh of relief that £2m+ properties won’t be penalised by a mansion tax, a levy that would have stifled activity in the capital and across the South East.
"Any such tax could also have had implications on lower rungs of the property ladder too, so it is not just wealthier homeowners who should be counting their blessings. The post-election feel-good factor could well kick in immediately and 2015 may prove to be a reversed version of 2014 in starting slowly and finishing strongly."
The Royal Institution of Chartered Surveyors (RICS) UK Residential Market Survey says that London house prices were back into positive territory in April, after seven months in decline, with short term predictions suggesting further rises.
28% more chartered surveyors saw prices rise in London in April, the first positive reading in the capital after seven negative months in the run up to the election. Price expectations over the next three months are also positive, with 11% more respondents expecting prices to rise further.
New instructions fell sharply with 36% more chartered surveyors seeing a decline, while the capital also saw an increase in buyer enquiries for the first time in a year as both these factors contributed to the pick-up in prices. Activity levels over the last month decreased most sharply in London where 21% more respondents reported a fall rather than rise in newly agreed sales
52% more respondents expect prices to rise over the next twelve months in London and the predicted average percentage price rise for houses in the capital over each of the next five years is 5.4%.
Meanwhile, in the lettings sector, supply has been rising steadily in London for three years now but the growth in tenant demand is not far behind. As a result, 39% more chartered surveyors expect rents to rise over the next three months which is the highest reading since the first half of 2011.
Simon Rubinsohn, RICS Chief Economist, said: “It is conceivable that the decisive outcome to the election could encourage a pick-up in instructions to agents and ease some of the recent upward pressure on house prices but it is doubtful that this will be substantive enough to provide anything more than temporary relief. Alongside an increased flow of second hand stock, it is absolutely critical that new government focuses on measures to boost the flow of new build.’’
According to Land Registry figures London as a whole continued to see the highest price rises in the country in March rising by 11.3% to £462,799. This compares to a 5.3% increase for England and Wales which brought the average price up to £178,007. The peak was achieved in November 2007 when the average reached £181,049.
The number of properties sold in England and Wales for over £1 million decreased by 19 per cent to 851 from 1,049 a year earlier. Repossessions in England and Wales decreased by 45 per cent to 590 compared with 1,081 in January 2014
A detailed listing of properties sold recently in the area will be appearing in a forthcoming edition of the Hammersmith newsletter.
Source: Land Registry
May 15, 2015