Property Market in Hammersmith Remains in Slow Lane
With sales of new luxury apartments continuing to slump
The property market in Hammersmith remains in the slow lane in 2016, with the overall volume of sales in the third quarter down by 58.2% compared with the same period last year.
These sales figures for the W6 post code area may still be revised, but are unlikely to climb far from 56 sales in the third quarter to the total of 130 sales achieved in the same quarter in 2015.
The overall sales total was also almost exactly the same as the previous quarter, when 55 properties changed hands.
At the top end of the market just one semi-detached home was sold - a house in Pleydell Avenue on the border with Chiswick which fetched £2,065,000.
The market for terraced houses proved slightly brisker with sales up to 23 from 17 in the previous quarter, and the average price reaching £1,326,987.
A four bedroom house in Hyde Mews on Dalling Road also achieved the highest price during the period, changing hands for £3,975,000.
Sales of flats however, showed the biggest slump, down by 66% over the same quarter in 2015 and the average price down by 13.4% to £556,109.
This fall reflects the slowdown in sales of newly built luxury apartments in this post-Brexit period. At Riverside development Fulham Reach for example, just one sale was recorded, with a price tag of £1,040,000.
All other flats across Hammersmith were sold for well under one million pounds.
Alex Maile, MD of estate agents Lawson Rutter says, " Things may have slowed down, somewhat, but the initial Brexit panic has now steadied. And, it seems, quite a few first-time-buyers were holding off their purchase until after the referendum, hoping for house price falls.
"These people are now looking to buy, which is encouraging. Although, before we get too excited about it, there is no doubt that we have moved into a more price sensitive market."
The Land Registry’s House Price Index is showing that the average price of a home sold in London in August was £488,908 which is up 12.1% over the same month last year. For the UK as a whole the index shows and average price of £218,964 up by 8.4% compared to the previous year.
The short term indications for the market appear to be positive. Mortgage approvals for house purchases rose to a three-month high in September according to the Bank of England.
Simon Rubinsohn, RICS Chief Economist, said, “The dire shortage of available housing across the UK is continuing to push prices upwards, regardless of the uncertainty linked to the ongoing discussions surrounding Brexit. We are only weeks away from the Autumn Statement, and it will be interesting to see what measures – if any - the Chancellor will put in place to increase housing supply and create a more affordable market.”
The latest RICS monthly report states that agreed sales declined further in London with 16% more chartered surveyors seeing activity fall rather than rise in October. Projections for price growth over the next three months in Central London are broadly flat with 2% more respondents foreseeing a fall over the next three months rather than a rise. In the London lettings market, a fall was noted in tenant demand where, for the second consecutive quarter, 15% more surveyors reported a fall rather than a rise in enquiries. Sluggish demand in the capital is taking a toll on rent expectations and 12% more respondents are predicting a fall in rental values in the capital over the coming three months.
| Hammersmith Property Prices (July - September 2016) | ||||||||
|---|---|---|---|---|---|---|---|---|
Area |
Semi- |
Sales |
Terrace |
Sales |
Flat/ |
Sales |
Overall Ave |
Overall Sales |
W6 0 |
2065000 |
1 |
1683111 |
9 |
506182 |
11 |
1084810 |
21 |
W6 7 |
0 |
0 |
895000 |
1 |
773333 |
6 |
790714 |
7 |
W6 8 |
0 |
0 |
1110500 |
10 |
504625 |
8 |
841222 |
18 |
W6 9 |
0 |
0 |
1124236 |
3 |
507214 |
7 |
692321 |
10 |
Total |
2065000 |
1 |
1326987 |
23 |
556109 |
32 |
899664 |
56 |
Last quarter |
-8.9% |
9.5% |
-13.4% |
-33.3% |
-1.0% |
-21.1% |
||
Last year |
-14.3% |
-36.1% |
-17.6% |
-66.0% |
-4.1% |
-58.2% |
||
Last three years |
23.6% |
-54.0% |
23.5% |
-71.2% |
29.8% |
-66.3% |
||
Last five years |
53.4% |
-53.1% |
60.7% |
-57.9% |
51.5% |
-57.6% |
||
Last ten years |
105.1% |
-71.6% |
85.9% |
-75.0% |
97.5% |
-74.2% |
||
Source: Land Registry
November 11, 2016
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