Demand for family homes sustained while collapsing for smaller properties
Two houses in Ruvigny Gardens have been sold in recent months
The average sale price of a property in the SW15 postcode area has soared to a new all-time high despite the pandemic.
According to Land Registry figures based on sales reported for the third quarter of 2020, the average has reached £928,675 up by 21.5% over the same period last year.
The rise seems to have been driven by sustained strong demand for larger houses. For the first time since records began, more houses than flats were sold in Putney and Roehampton.
The number of transactions has fallen overall with just 28 sales for flats and maisonettes during the period. In the past it has not been unusual for over 200 such properties to change hands within three months.
Buyers of houses do not appear to have been discouraged by the lockdown with £3,395,000 being paid for a terraced house on Deodar Road just a few days after the restrictions were put in place. In subsequent months high prices continued to be paid including £3,250,000 and £2,950,000 for two terraced houses on Ruvigny Gardens a road on which some of the homes enjoy splendid views over Putney Embankment.
The Ruvigny Gardens property which sold for the higher price had been bought for £1,850,000 back in July 2006 and £660,000 in August 1999.
A local estate agent said, “There aren’t many more family homes being built across London and particularly in Putney with a river view and people who buy them tend to do so with a longer term perspective so the pandemic has done little to suppress demand.
“Looking at average prices does give a somewhat distorted picture of what is going on but the more recent transactions for larger properties do point to them being at or close to an all-time high in terms of price. This may change when the stamp duty exemption ends but I think that the government will offer more incentives to the market next year to avoid a cliff edge.”
| Putney Property Prices (July-September 2020) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
Area |
Detached |
Sales |
Semi-detached |
Sales |
Terrace |
Sales |
Flat/ mais |
Sales |
Overall Ave |
Overall Sales |
| SW15 1 | 0 | 0 | 1544950 | 2 | 1260071 | 7 | 1006333 | 3 | 1244117 | 12 |
| SW15 2 | 0 | 0 | 1194333 | 3 | 1229375 | 4 | 630000 | 7 | 922179 | 14 |
| SW15 3 | 1244500 | 2 | 752500 | 2 | 1470000 | 2 | 491400 | 5 | 853727 | 11 |
| SW15 4 | 0 | 0 | 880000 | 1 | 0 | 0 | 0 | 0 | 880000 | 1 |
| SW15 5 | 1235000 | 1 | 978374 | 2 | 677500 | 4 | 753750 | 6 | 801865 | 13 |
| SW15 6 | 1732500 | 1 | 0 | 0 | 1306250 | 2 | 538429 | 7 | 811400 | 10 |
| Total | 1364125 | 4 | 1101465 | 10 | 1157921 | 19 | 649196 | 28 | 928675 | 61 |
| Last quarter | 46.9% | 100.0% | -7.5% | 150.0% | -9.2% | 11.8% | 15.9% | -28.2% | 14.8% | -1.6% |
| Last year | -53.8% | -55.6% | -22.8% | 66.7% | 9.0% | -59.6% | 25.0% | -81.8% | 21.5% | -71.8% |
| Last three years | -48.7% | -50.0% | -31.6% | 25.0% | 17.1% | -57.8% | 23.6% | -76.3% | 18.2% | -65.9% |
| Last five years | -30.6% | -55.6% | -28.4% | 25.0% | 15.1% | -66.7% | 22.1% | -85.9% | 31.3% | -77.7% |
| Last ten years | -23.9% | -42.9% | -6.2% | -60.0% | 78.4% | -68.9% | 90.4% | -81.8% | 71.2% | -75.3% |
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
Nationally the Nationwide House Price Index showed a year on year increase of 5% to £226,129 up to the end of September. For London the average has risen by 4.4% over the year to £480,857.
Robert Gardner, Nationwide's Chief Economist, said: “Housing market activity has recovered strongly in recent months. Mortgage approvals for house purchase rose from c66,000 in July to almost 85,000 in August - the highest since 2007, well above the monthly average of 66,000 prevailing in 2019.
“The rebound reflects a number of factors. Pent-up demand is coming through, with decisions taken to move before lockdown now progressing. The stamp duty holiday is adding to momentum by bringing purchases forward. Behavioural shifts may also be boosting activity as people reassess their housing needs and preferences as a result of life in lockdown.”
November 13, 2020
