|Average Property Price in Hammersmith Heads Back Towards One Million|
While terraced houses soar to new record high of over £1.5 million
Property prices in Hammersmith bounced back in summer after slumping in spring, with the overall average back up to £930,740.
This reverses the trend in the second quarter which saw the average in the W6 post code area drop by 20.1% from over one million to £808,498.
Terraced houses benefited the most from the summer bounce, soaring to a new record high of over £1.5 million.
Between July and September, the average price of a terraced house jumped by 22% over the previous quarter, from £1,252,249 to £1,530,484.
In fact terraced house prices rose across three of Hammersmith's four postcode areas, with sales in W6 7 - the Brook Green area east of Hammersmith Grove - achieving the largest leap, from an average of £1,955,000 in the second quarter to £2,618,333.
At the top end of the market, sales remain slow, with just three semi-detached houses changing hands for an average price of £1,566,667 and only one detached house, selling for £1,900,000.
However, the market for flats and maisonettes continues to thrive in Hammersmith, partly due to the number of large new developments in our area. The overall average rose by 8.8% from £614,158 in spring to £668,453.
Again, flats in the Brook Green area had the biggest boost, with the average rising from £362,200 to £553,000. Predictably, flats in the W6 9 area, which includes riverside developments Fulham Reach and Palace Wharf remain the most expensive, with an average of £778,748.
During this period a new record was set for a home in W6 with an apartment in Distillery Wharf, Regatta Lane - part of Fulham Reach - going for £8,140,000.
The September figures from the Land Registry's Market Trend Data survey show that London remains the country's best performing area in terms of residential property price rises. The average price in the capital is now just short of half a million at £499,997 up by 9.6% over the last year. The average property value in England and Wales rose by 5.3%to £186,553. Monthly house prices up 1.0 per cent since August 2015.
The number of completed house sales in England and Wales decreased by 4% to 81,696 compared with 84,691 in July 2014. The number of properties sold in England and Wales for over £1 million in July 2015 decreased by 9% to 1,413 from 1,555 a year earlier. Repossessions in England and Wales decreased by 50 per cent to 471 compared with 943 in July 2014 with only 36 taking place in London during the month.
In October, 25% more chartered surveyors in London saw house prices rise according to the latest RICS UK Residential Market Survey, compared to a balance of 26% more in September, showing a steady increase month-on-month.
However, only 5% more chartered surveyors are expecting a rise in prices in the capital over the next three months – this is the lowest reading across the UK over this time period. Despite this, the twelve month view for the capital is still relatively strong with 53% more respondents expecting prices to increase.
Demand from potential buyers grew modestly across London in October with 7% more respondents seeing a rise in new buyer enquiries. Demand continues to considerably outpace supply and the number of new instructions decreased for the ninth month in succession, with 9% more chartered surveyors reporting a fall, contributing to the rise in prices in the capital. The supply of new listings to the UK market as a whole has been in decline since the start of the 2015 with a decrease in new instructions in London every month this year.
In the London lettings market, demand increased at broadly similar pace to that of supply in the three months to October, as new landlord instructions rose at the quickest quarterly pace since early 2014. Nevertheless, rental expectations remain strong and respondents continue to expect rents to rise over the year ahead. Rental growth in the London is anticipated to accelerate to an average of around 4.5% per year over the coming five years.
Simon Rubinsohn, RICS Chief Economist, commented, “It is hard to get away from the issue of supply when it comes to the current state of the housing market. The legacy of the drop in new build following the onset of the global financial crisis is now really hitting home with both the sales and letting markets continuing to show demand outstripping supply on a month by month basis. And if the five year projections from members regarding the outlook for both prices and rents is anything to go by, property is set to become even more unaffordable going forward making the governments focus of boosting to delivery of new homes absolutely critical.”
Changes to the tax regime have also had an impact in the top end of the market with the turnover of larger family houses in the area falling.
Adrian Gill, director of Reeds Rains and Your Move estate agents, said, “The Chancellor's intimidating Stamp Duty remodel is still spooking the top end of the London market. Properties worth over £1.5 million have been hit with a stamp duty increase, currently set at 12% of the portion of the property's value above £1.5m, up from 5% previously. As a result, sales of homes worth more than £1.5 million have fallen by 35% in Q3, compared to a year ago. This tax has really put the shackles on the prime market in the capital, as three quarters of these sales since January 2014 took place in London. “
Source: Land Registry
November 14, 2015