|Price of Flats in Shepherd's Bush Rises by Almost 10%|
But overall market is quiet amid concerns over Brexit referendum
The average property price in Shepherd's Bush remained steady at £706,140 in the run-up to the Brexit referendum - but the market was quiet, with the number of homes changing hands plunging by over a half compared with the same period in 2015.
The sales slowdown hit houses rather than flats, with just 13 recorded sales of terraced houses. And though these numbers may be still be revised upwards, they are likely to remain well below the 38 recorded in this quarter last year.
No detached homes were sold between April and June and only two semi-detached houses - a house in Rylett Road which achieved a price of £2,500,000 and a second in neighbouring Rylett Crescent which achieved £2,100,000.
The market in flats however was much livelier, with the average price up by 9.6% to reach £587,367. This rise was consistent across all four postcodes in Shepherd's Bush and across both traditional and new build properties. Again however, the volume of sales was considerably lower than the previous three months.
While this may sound like bad news for local estate agents, Chris Kerr, Sales Director of Kerr & Co says that after 25 years' experience, he is convinced that the housing market is well placed to ride out any bump in the road.
He says: " The fundamental drivers to the housing market have not changed and there will be always a requirement for people to move home. In fact, it could well prove that the coming months offer great opportunities with mortgage rates falling further, the weakened pound and a diminished appetite for stocks and shares making the London property market a highly attractive proposition once more.
" As champions of both Shepherd's Bush and Hammersmith we have long highlighted to a wider audience the significant draws these vibrant areas have. The current investment in the White City Opportunity area totals some £7 billion, our communications networks are some of the best within the Capital, we are a microcosm of Central London providing everything you would expect from a world class city. "
Across the whole of London Prices rose by 12.6% over the twelve months to June bringing the average price up to £472,204. Prices rose marginally during the month of June.
For the UK as a whole there was an annual price increase of 8.7% which takes the average property value to £213,927.
Following a strong increase in sales in March, UK home sales fell by 55.4% in April 2016, recovering slightly in May and June 2016. The swings in volume are believed to be primarily due to Stamp Duty changes. This was mirrored in London where 14,783 sales were recorded during March but this fell to 4,368 in April.
The latest report from the Royal Institution of Chartered Surveyors (RICS) has concluded that housing market activity has softened with sales and interest from new buyers continuing to wane. They say sales and enquiries continue to display a negative trend in London - although expectations point to a more stable picture in the coming months. Stock levels in the capital are at record lows and new instructions have declined markedly. Across London, 42% more surveyors reported a fall in transactions; the fifth month of decline.
The RICS say that this reflects a continuation of a trend that started in March following the implementation of the tax surcharge on investment purchases. Anecdotal reports provided by contributors to their survey suggest both the tax change and the ongoing fall-out from the EU referendum are contributing to the current mood in the market. However, looking a little further out, London has seen a notable turnaround in sentiment for the year ahead, as confidence towards the outlook for transactions climbed to a seven month high.
Simon Rubinsohn, RICS Chief Economist, commented: “The housing market is currently balancing a raft of somewhat mixed economic news alongside the latest policy measures announced by the Bank of England, which have already begun to lower cost of mortgage finance. Against this backdrop, it is not altogether surprising that near term activity measures remain relatively flat. However the rebound in the key twelve month indicators in the July survey suggest that confidence remains more resilient than might have been anticipated.“
The numbers below are subject to revision as is it usual that some properties are added late to the Land Registry's database.
Source: Land Registry
October 3, 2016