Property Prices Reach All Time High At Start Of 2016

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Average price of both flats and terraced houses at record levels

Local property values appear to have reached record highs so far this year.

The average price of property sold in the SW15 area in the first quarter of 2016 was £768,224, up by 14.8% compared with the same period last year.

Although the overall average does not match the level reached in the second quarter of 2014, the earlier peak was boosted by an unusually high number of sales at the very top end of the market. The most recent figures suggest that local prices are reaching new levels because the price of both the average terraced house and flat in SW15 have reached all-time highs. A terrace in SW15 now averages over £1,000,000 whereas flats have risen by 8.2% over the last year to £565,885.

The top end of the market saw relatively little activity with only two sales of detached houses being reported so far this year. The most expensive was on Rusholme Road which was registered as sold for £2,960,000. In 2007 the same property was sold for £1,425,000 - an increase of 107% in less than nine years.

A total of 119 flats were sold in the first three months of 2016 with the majority being sold in the SW15 2 post code area with an average price of £647,504. This area of Putney includes the modern riverside developments east of Putney High Street.

The Land Registry’s March data for London shows a 13.9% rise over the last year to £534,785. This is higher than any other part of the country and makes London's average twice that of any other region including the South East.

Annual growth of 6.7% in March brings the average house price in England and Wales to £189,901.

Over the last year prices in the London Borough of Wandsworth rose by 8.6% to £633,121.

The latest survey by the Royal Institution of Chartered Surveyors (RICS) has revealed that growth in the private and public housing sectors in London slowed down considerably. Private housing workloads rose at their slowest pace since Q4 2012, with only 20% more of those working in the sector reporting a rise in activity rather than a fall over the first quarter of 2016. During the last quarter of 2015 that figure was 44 per cent.

This easing in the private housing sector has not been offset by any increase in the construction of public housing, with growth in this sector remaining broadly unchanged from the previous quarter, and just 11% more surveyors reporting a rise rather than a fall in activity.

RICS Chief Economist, Simon Rubinsohn said: “On the surface, it might seem surprising that we are witnessing a slowdown in the construction sector just a few months after hearing the Chancellor’s ‘We Are The Builders’ speech, given the Government’s significant commitment to this sector. One might well ask why growth in private housing workloads is softening at a time when policy is firmly focussed on the creation of new starter homes. We have long held the view that starter homes cannot be the only solution. There is an issue around the availability of land on which new houses can be built, and we would like to see more being done to free up private brownfield sites.

“Our survey tells us that planning delays are one of the biggest barriers to growth in the construction sector. We have recommended that councils work together to create a team of emergency planners who can parachute into boroughs that are experiencing significant delays, therefore reducing a major growth barrier.

“That said, we cannot discount the climate of uncertainty caused by the forthcoming EU referendum. We know that a range of sectors have been affected by these issues as investors look to delay.

Putney Property Prices (January - March 2016)
Area	Detached	Sales	Semi-detached	Sales	Terrace	Sales	Flat/ mais	Sales	Overall Ave	Overall Sales
SW15 1	0	0	1796888	1	1267955	11	597533	18	883333	30
SW15 2	0	0	1692000	3	1331667	3	687971	42	790954	48
SW15 3	830000	1	1367000	9	787500	2	501527	18	791183	30
SW15 4	0	0	0	0	639012	4	294067	15	366687	19
SW15 5	0	0	610000	1	821583	9	426778	9	623434	19
SW15 6	2300000	1	2100000	3	1092429	7	612379	17	952052	28
Total	1565000	2	1534464	17	1030967	36	565885	119	768224	174
Last quarter	-22.0%	-81.8%	23.5%	54.5%	14.8%	-28.0%	6.6%	-29.2%	8.6%	-27.5%
Last year	6.3%	-60.0%	45.3%	183.3%	5.4%	28.6%	6.2%	8.2%	14.8%	16.8%
Last three years	-25.1%	-75.0%	24.4%	466.7%	9.9%	9.1%	37.6%	-5.6%	26.5%	2.4%
Last five years	-4.4%	-66.7%	47.6%	70.0%	61.9%	-26.5%	71.8%	14.4%	51.5%	3.0%
Last ten years	11.1%	-66.7%	58.6%	30.8%	115.2%	-43.8%	113.1%	-43.3%	109.5%	-40.6%

Copyright notice: All figures in this article are based on data released by the Land Registry. The numbers are derived from analysis performed by PutneySW15.com. Any use of these numbers should jointly attribute the Land Registry and PutneySW15.com.

May 17, 2016