|'Bog Standard' Chiswick Property Sees Further Price Rises|
Terraced houses and flats in W4 reach new record level
The less glamorous end of the Chiswick property market has been the best performing so far this year with prices of both terraced houses and flats reaching all-time highs.
According to Land Registry data for the second quarter the average price of a 'bog standard' terraced house in the W4 post code area is now £1,295,957 a rise of 23.9% compared with the same period last year. This makes it the best performing type of residential property in the area having risen by 146.8% over the last decade.
Flat prices have also continued to rise to new record levels with the market for this type of property being particularly active. The average unit sold during the period went for £579,761, up by 10.7% on the year.
Despite the strength in flat and terraced house prices the overall average remains below the peak of above the one million pound mark seen during the third quarter of last year. The average is now £938,467 up by 4.3% over the year.
Relatively speaking the very top end of the market seems to be performing less well. The most expensive house reported as sold to the Land Registry in W4 so far this year is Lingard House, Chiswick Mall which changed hands for £3,640,000 having been marketed at one point for £4,500,000. This would only rank as the 69th highest price sale of all-time in the area.
In addition the number of detached and semi-detached properties as a proportion of overall sales is falling with flats now making up nearly 60% This means that the overall average price is not necessarily reflective of the actual state of the market but rather is being influenced by a change in the mix of properties sold.
Philip Pike of Faron Sutaria said; "Whilst there is undoubtedly lower volume in the market, particularly in the more high end house sales, there remains strong demand for one and two bedroom flats and smaller sized family homes, with prices remaining strong in these areas.
"This reflects the core Chiswick buyers (young professionals and families), for whom Chiswick is a long term aspiration, and not easily affected by any concerns with things going on outside the area.
"Long term, we have an increasingly strong economy and now the election is out of the way, all the right factors are in place for a busy Autumn of property buying and selling.
Alastair Hilton of Winkworth Estate Agents said, "There is the perennial problem in Chiswick of a lack of stock. We’ve found that one and two bedroom apartments in the £400,000 to £750,000 price range have been in the biggest demand from buyers. Prices have proved to be very strong in this sector. Many vendors that we have spoken to recently though are looking to move out of the area as the jump from a two bedroom flat to a three/four bedroom house is proving to be too great within Chiswick. With everyone on holiday in August, I’m expecting another spike in house sales in September, with buyers and sellers wanting to have their Christmas tree up in their new home."
Christian Harper, proprietor of HarperFinn commented, "Driving around Chiswick I certainly think that more and more of us are deciding to capitalise on every square foot of potential and stay in our houses rather than to dip a toe into larger stamp duty, rising fixed rates and more top line debt. If this decline in number of houses being sold continues it may very force prices higher over the next 5 years which wouldn't be a good thing for the next generation of Chiswickians. However on the upside, I can’t see how 43 estate agents operating in Chiswick could stay in business at the fees that most of them currently charge."
June data from the Land Registry showed that the average house price in London increased by 9.2% over the same month in 2014. This brings the average to £481,820. For England and Wales as a whole the average price rose by 5.4% to an new all-time high of £181,619. The previous record was in November 2007 before the financial crisis.
The number of completed house sales in England & Wales during April 2015 decreased by 19% to 57,180 compared with 70,244 in April 2014 and the number of properties sold in England and Wales for over £1 million decreased by 22%to 874 from 1,114 a year earlier. There were only 41 repossessions in London in April - half of the level seen a year ago.
The latest RICS UK Residential Market Survey shows that house prices continue to be squeezed higher by growing demand and contracting supply in London. While 40% more chartered surveyors saw prices rise in London in July, supply to the market continued to decline with 16% more respondents reporting a fall in new instructions. Additionally, the shortage of housing inventory worsened further in the capital during July, with the average number of properties for sale per surveyor in London slipping to the lowest figure since February 2014.
Near term expectations for prices also continue to reflect the imbalance between demand and supply with 48% of members expecting prices to continue to rise in London over the next three months. This is the highest level since March 2014. However, rising prices have not dampened interest as new buyer enquiries rose for the fourth month in succession, with 36% of respondents reporting a rise in demand in the capital. Despite this steady and sustained improvement in demand, newly agreed sales continued to decline in London. Going forward, there is more optimism regarding the prospects for activity with 37% more respondents expecting sales to gain momentum over the next three months.
Simon Rubinsohn, RICS Chief Economist, said, “A renewed acceleration in house price inflation allied to a fairly flat trend in sales activity highlights the very real challenges being presented by the housing market. More worrying still is the suspicion that the imbalance between supply and demand will lead to even strong price gains over the next twelve months. This is also visible in the firmer pattern in the buyer enquiries series which has now risen for four months in succession reflecting in part, a further modest easing in credit conditions. This trend could be brought to a halt when base rates do eventually begin to rise but the dovish tone to the latest Bank of England Inflation Report suggests the first move will come a little later than previously thought likely and that subsequent increases will be very gradual indeed.’’
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Roughly speaking the post code sector areas are as follows:
1 - Bedford Park and the north side of the High Road
2 - The south side of the eastern end of the High Rd down to the river at Corney Reach
3 - The Grove Park area and over to Strand on the Green
4 - The west of Chiswick between the A4 and Chiswick High Rd - (a high concentration of flats)
5 - The north west of Chiswick - Acton Green mainly
August 14, 2015