With the price of flats doubling over the last year
Thu 14 May 2015
The average property price in Hammersmith soared above the million mark in the first three months of 2015, upby 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 betweenJanuary 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 wereup 10.6%, from 813,660 to 899,848, which makes it conceivable that the average flat price could soon reachone million pounds.
These prices are mainly due to a change in the mixture of flats being sold. The largest price jump was in the W69 postcode area, close to the river, where the average was up from 1,033,999 between October and Decemberto 1,409,660.
This area includes St George's giant riverside development Fulham Reach, where flats currently available to buyoff-plan are priced between 819,950 for one bedroom and 3,699,950 for three bedrooms.
The most expensive property so far reported as sold during the quarter was a house in Westcroft Square whichchanged hands for 2,000,000. It had earlier been on the market for 2,300,000.
And though sales in this area were up during this quarter, from 42 to 47, the rest of Hammersmith saw aslowdown in the market, with sales down from 142 in the previous three months to 114. And those these cold darkmonths are traditionally a quiet time, this may also have been partly due to pre-election jitters.
Local estate agents predict that is all set to change after a decisive election.
Winkworth CEO Dominic Agacesays: " There are a lot of people out there who were just waiting for the election result. Now that the result isknown, 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 that2m+ properties wont be penalised by a mansion tax, a levy that would have stifled activity in the capital andacross the South East.
"Any such tax could also have had implications on lower rungs of the property ladder too, so it is not just wealthierhomeowners who should be counting their blessings. The post-election feel-good factor could well kick inimmediately 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 houseprices were back into positive territory in April, after seven months in decline, with short term predictionssuggesting 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 anincrease 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 afall rather than rise in newly agreed sales52% 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 intenant demand is not far behind. As a result, 39% more chartered surveyors expect rents to rise over the nextthree 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 couldencourage a pick-up in instructions to agents and ease some of the recent upward pressure on house prices but itis doubtful that this will be substantive enough to provide anything more than temporary relief. Alongside anincreased flow of second hand stock, it is absolutely critical that new government focuses on measures to boostthe flow of new build.
According to Land Registry figures London as a whole continued to see the highest price rises in the country inMarch rising by 11.3% to 462,799. This compares to a 5.3% increase for England and Wales which brought theaverage 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 from1,049 a year earlier. Repossessions in England and Wales decreased by 45 per cent to 590 compared with 1,081in January 2014.
London was the region with the greatest fall in repossession sales with only 65 taking place in January 2015.