But local agent says market is improving with increase in sales this year

Howards Lane property exchanged hands before Christmas for £4,450,000

2019 was not a banner year for the Putney property market with the average sale price for a home in the SW15 postcode area of 14.5% to £671,565.

The weakest performing type of property during the year was terrace houses which saw a dip in both average price and volumes. Flats held up relatively well in price terms but the amount being sold remains worryingly low.

However, new-build properties are still not moving with only three properties selling in the quarter. They were all in the same development, The Bowery Building on the Upper Richmond Road and the sales prices ranged from £560,000 - £910,000.


The Bowery Building

One factor which will have impacted on the average price recorded is the number of properties that change hands in the Dover House Road area (SW15 5) where properties are on the lower price levels compared to the more central areas.

Local property professionals are pinning their hopes on a 'Boris Bounce'. Allan Fuller said, "There is no doubt that the total uncertainty that has prevailed in the UK for three years because of Brexit uncertainty has made people hold back on moving plans. Reality has changed now that there is a government in place for 5 years and Brexit decided - whether you like either result…..."

The Land Registry shows an eight bedroom property on Howards Lane selling for £4,450,000 at the beginning of December proving there is still demand for large family homes in the area and Allan believes there is additional proof of increased interest in the local market. He comments, "The point is that there are people who need to move, those who have been putting off decisions are getting back into action. As a company we have very firm evidence of this because in January we agreed sales on a considerable amount of property, some which had been on the market for a while and not getting offers. This comprised several flats as well as houses in the region of £2,000,000. We are also getting more interest from younger buyers who feel it is time to stop renting and have a home of their own. "

He concludes, "For us we are now needing more property so anyone who is still hesitating to sell we would like to hear from them as soon as possible!".

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

For the country as a whole prices grew by 1.4% in 2019 to reach an average of £215,282 according to the Nationwide House Price Index. The figures from National Statistics show a 2.2% rise to November 2019 to an average of £235,298.

Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said, “January saw a further modest pick-up in annual UK house price growth to 1.9%, from 1.4% in December. This follows twelve 12 successive months in which annual price growth had been below 1%.

“Indicators of UK economic activity were fairly volatile for much of 2019, but the underlying pace of growth slowed through the year as a result of weaker global growth and an intensification of Brexit uncertainty.

“Recent data continue to paint a mixed picture. Economic growth appeared to grind to a halt as 2019 drew to a close, though business surveys point to a pickup at the start of the New Year. “

The Royal Institution of Chartered Surveyors’ (RICS) November 2019 UK Residential Market Survey reported that key measures of buyer demand point to sales remaining in negative territory, the uncertainty surrounding the 2019 General Election and Brexit being the likely cause of suppressed activity. However, there is an expectation that a more stable trend is likely to emerge over the coming three months.

The Bank of England’s Agents’ summary of business conditions – 2019 Q4 reported that the housing market remained subdued, mainly due to the October Brexit deadline and the General Election. Contacts reported that house prices were modestly down on a year ago in the south and modestly up elsewhere.

Robert Gardner added, “Looking ahead, economic developments will remain the key driver of housing market trends and house prices. Much will continue to depend on how quickly uncertainty about the UK’s future trading relationships lifts, as well as the outlook for global growth. Overall, we expect the economy to continue to expand at a modest pace in 2020, with house prices remaining broadly flat over the next 12 months.

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.

February 6, 2020