Property Market – Spring Update
Hello and welcome to our Q1 2018 Update. In this edition, we will look at the market trends for the first quarter of 2018.
Market Trends Q1 2018
A survey this week showed that house prices in prime parts of London had tumbled deeply over the past year, with Wandsworth Borough – which includes much of Clapham, Balham and Putney – falling nearly 15%. By contrast, the north-west was now the fastest growing market in England and Wales with prices in Blackburn, Lancashire growing 16.4%.
Years of rapid growth in London have made the capital increasingly unaffordable, particularly for younger buyers who are forced to rent expensive homes in the city while struggling to save for a deposit.
The average home in the capital costs £484,000, according to the Office for National Statistics, almost double the average for England as a whole of £244,000.
House prices in relation to average earnings in London are at roughly nine times annual average earnings.
In zone two this quarter and in terms of property pricing in Barnes, we are seeing 10% off the top of the recent market high.
This is being driven by the uncertainty that still remains around Brexit and increased Stamp Duty levies over the past 3 years; sellers have now realised in order to sell they need to be more realistic with their pricing.
Both houses and flats – have to be priced at exactly the right level in order to maximise viewings. Any exaggeration on the price and buyers will often disregard it without even viewing the property.
It continues to be a buyers’ market, with strong opportunity to negotiate, especially with the days of the bidding war gone. However there are definitely buyers out there but they know the values well and will not be tempted to view overly priced properties.
In terms of who is moving in this market, it does tend to be those that ‘need’ to move being due to a new job, downsizing or families looking for more space and homes near good schools. Despite all the reasons to stay put, for growing families, life still moves on.