Liquid error: wrong number of arguments (2 for 1) Press Release: House prices in Balham boosted 415 a day | Marsh & Parsons Sales and Lettings Estate Agents London

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Press Release: House prices in Balham boosted 415 a day

Thu 22 Jan 2015

  • Average London property values rose by 260 a day over last year, and Balham sees biggest leap as prices jump by a fifth (21%) in twelve months
  • Majority of gains made in first half of 2014, and prices dropped 1.6% during Q4 in the first quarterly fall since Q2 2011 as market corrects from record year
  • Supply of Prime London property for sale jumps by a quarter (26%) in last three months
  • New Year sees uplift in demand, with 13 buyers to every available property in January

Property prices in Balham outpaced the rest of London in 2014 with 21% annual growth, according to estate agent Marsh & Parsons latest London Property Monitor.

The average Prime London home has risen in value by 95,000 in the past twelve months however house prices in cheaper Balham have jumped 152,000 over the same period.

With property prices in Outer Prime areas of the capital typically 25% lower than the wider Prime London average, stronger demand for more affordable homes has pushed the rate of house price inflation up in suburban villages. House prices in Outer Prime London climbed 9% during 2014, compared to a 4.3% annual increase in Prime Central areas.

Favoured by first-time buyers and young families, Balham witnessed the steepest annual growth during 2014 closely followed by leafy Brook Green where property values are now 19% higher than a year ago. In contrast, average prices in exclusive Prime Central enclaves of Kensington and Holland Park have grown 8% in the past twelve months.

Peter Rollings, CEO of Marsh & Parsons, comments: "The prestigious prime property bastions of Kensington, Chelsea and Holland Park will always command worldwide appeal from buyers however everyday demand for more affordable homes has catapulted Balham and other Outer Prime corners of the capital onto the map. Londoners are increasingly willing to compromise on a central location in return for more living space and manageable price tags, and as a result the price growth seen in green village suburbs has overtaken the Goliaths of London property this year."

Prime London Property Price Movements

Average Value Quarterly Change Annual Change
All Prime London 1,572,342 -1.6% +6.4%
Prime Central London 2,199,531 -2.1% +4.3%
Outer Prime London 1,180,348 -1.1% +9.0%

However, the majority of this house price growth occurred in the first half of 2014, and in the last three months, Prime London property values declined 1.6%. This is the first quarterly price drop witnessed for three and a half years, as the market corrects after remarkable growth seen throughout the first half of 2014 .

A 26% uplift in the supply of Prime London properties on the market in the last three months of 2014 has helped normalise house price growth. Competition for available homes on the market has eased as the ratio of registered buyers per property dipped during Q4 from 12 in September to 11 in December.

Already in 2015 there are indications that activity has picked up, which will kick-start further price rises, albeit at a calmer pace than last year, with annual growth of 3-5% expected across the capital. As of January, there are 13 buyers to every available Prime London property, as demand intensifies in the New Year.

Peter Rollings concludes: "The end-game over the past year shows significant house price growth, but this hasnt followed a simple straight line course. Property markets usually follow a cyclical pattern, and the first half of 2014 saw a strenuous uphill charge of house price growth, as buyers jostled elbow-to-elbow for the best properties. In the summer, values reached their pinnacle, and growth then plateaued. More recently, prices have backpedalled, but this slight hiatus is merely returning growth to more solid and stable ground. Buyers have been given some respite from heated trading conditions, and sellers are still achieving 96% of the asking price. After this breather, we expect growth to begin climbing again in 2015, and already theres been a New Year boost of buyer demand to set the wheels of activity firmly in motion.

"While we dont expect values to fall any further, price growth is likely to remain stable for the opening months of the year. But after the general election, activity volumes will be turned up, once political uncertainty is put to bed."

Property Type Breakdown

All Prime London Prime Central London Outer Prime London
1 Bed 573,029 641,653 530,139
2 Bed 1,026,852 1,431,267 774,093
3 Bed 1,710,787 2,524,933 1,118,113
4 Bed 2,138,310 3,102,389 1,536,281

For further detailed analysis on Prime London lettings, million pound homes, investors and UK buyers please see Marsh & Parsons accompanying London Property Monitor for Q4 2014 here.

-ENDS-

Methodology:

The Prime Market Monitor uses a repeat valuation methodology that tracks values in a robust and representative mix-adjusted basket of properties across Prime London in the main areas in which Marsh & Parsons operates. Prime Central London comprises representative baskets of properties covering Chelsea, Kensington, Notting Hill, Holland Park and Pimlico. Outer Prime London comprises areas such as Clapham, Balham, Battersea, Barnes, Little Venice, Fulham and Brook Green. Prime London describes all these areas combined including Prime Central London and Outer Prime London.

Supply and demand statistics are based on an audit of Marsh & Parsons registrations and instructions during the quarter. Buyer profile information is taken from Marsh & Parsons quarterly MI data.


For further information please contact:

The Wriglesworth Consultancy, Emily Barnes / Barney McCarthy, 0207 427 1403 / 0207 427 1405


Marsh & Parsons, a multi-award winning estate agent, has been part of the London property scene since 1856. With 22 offices situated in prime positions across central, west and south west London, they have an intimate and extensive knowledge of the area. Marsh & Parsons services include residential sales and lettings, property management, new homes, developments & investments, professional surveying and corporate & relocation services.

Marsh & Parsons was acquired by LSL Property Services plc in November 2011, but continues to operate as a separate business, retaining its current management team.

A business that is built on energy, agility, professionalism and knowledge, Marsh & Parsons business aim is to be the agent who not only understands the local area around their offices better than any other agent, but is also at the heart of the community. They believe that Local know-how will achieve better results and make the difference for their clients.

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