Average price struggles to stay over the half a million mark

The latest property sales figures for the Putney area give an unclear picture of the state of the local market.

So far in April prices have averaged under £400,000 but the relatively small number of properties sold so far makes it difficult to conclude that this is the start of a downward trend.

The average property price in 2010 up to the end of March in SW15 was £515,553. This was 4.8% up on the previous quarter and 18.7% up on the previous year. This sharp rise over the year was mainly driven by an increased number of transactions involving higher priced semi-detached houses. The prices of terraced houses and flats only rose by 5.5% and 4.4% respectively.

The April data from Land Registry's House Price Index shows an annual price increase of 14.8% in London. For England and Wales prices are up by 8.5%. This is the sixth month in a row in which the figure has been positive and takes the average property value in England and Wales to £165,596.

The Nationwide House Price index for April shows a 10.1% increase the first double digit annual increase since 2007.

Commenting on the figures Martin Gahbauer, Nationwide's Chief Economist, said, "the more important driver of rising house prices has been the low level of stock for sale, as many homeowners and buy-to-let landlords continue to wait for prices to recover to peak 2007 levels before deciding to sell up or move. The very low level of interest rates has been supportive of this wait-and-see approach, particularly in the buy-to-let sector.

He is anticipating that prices will flatten out over the next few months due to the petering out of new buyer enquiries at estate agents offices and an increase in the number of instructions from sellers.

Local agent Tim Warren said:
"From a personal point of view, my perception of the Spring market in Putney is that sales have improved dramatically and prices achieved in some sectors are exceeding previous records .
 
This may seem bizarre when set against a national backdrop of appalling economic conditions although I believe there are two key factors sustaining property sales, low interest rates and a general shortage of stock and whilst these conditions remain then I don't foresee any immediate dramatic downturn in values but possibly a slowing of activity as the summer months approach .
 
A search through our database of applicants will reveal a reasonable number of proceedable buyers, many of whom are reluctantly in rented accommodation and willing to take a medium to long term view of the market in order to complete a purchase and finalise their housing issues .
 
As ever, the skill in balancing a valuation is key to a successful sale and it is essential in satisfying both one's vendor's expectations and at the same time the purchaser's recognition of value for money . When these combine, a sale can be relatively straightforward and with a noticeable decline in 'City' buyers are more important than ever .
 
The forthcoming Budget has 'spooked' the current market with some uncertainty and I sense that it will be well into the Autumn before we are able to assess exactly where the market is heading over the next few years,"

Properties Sold in SW15 - March/April 2010

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.

June 9, 2010