|Local Agent Says 'Don't Panic' After Putney Sales Slump|
Dismisses concerns of a glut as demand for new flats appears to collapse
The year so far has seen no recovery in the already stagnant property market in Putney and Roehampton. Less than a sale a day has been reported to the Land Registry so far this year in the SW15 post code area, a fall of over 60% from previous levels.
Demand for new build properties appears to have almost completely ground to a halt with only two sales reported by in the first quarter. With a large number of units in the pipeline and many of these in developments without riverside views, but are built along the busy Upper Richmond Road which are more difficult to shift, there is a danger of a serious overhang of unsold inventory.
The average price of a property in SW15 has risen by 7.5% over the last year but that is entirely down to the sharp fall in the number of flats being sold compared to the more moderate drop in house sales. On a like-for-like basis prices are down.
Local Putney estate agent Allan Fuller whilst admitting that activity is way below levels seen a few years ago is not panicking about the current market. He said, "Conditions at the moment are of course different. but not quite so glum as it might at first appear. The reality for my company is that we have agreed 30% more sales so far this year compared to 2017. Its all about the price, vendors and agents who overprice property are left stranded, time and again we are proving that sensible pricing get real interest and sales result."
The poor sales numbers are likely to be painful for local estate agents with too many players chasing too few commissions. However activity in larger family houses continues to be relatively robust with several sales of this type of property taking place at prices above £2 million and £3 million being raised in the sale of a property in Chartfield Avenue which in 2010 had sold for £2,452,000.
Allan continued, "The announcement on Thursday by the Bank of England that interest rates are not changing will encourage buyers to take advantage of some great mortgage deals available with the chance to future proof outgoings by fixing a good deal.
"As for new properties the recent developed large blocks in Putney are long sold out, so naturally not in the statistics newer ones are getting activity but are too far off completing to be seriously marketed yet. So in the famous words of Corporal Jones, ‘Don’t panic’"
Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said: “Looking ahead, much will depend on how broader economic conditions evolve, especially in the labour market,
Home ownership rates have declined across all English regions over the past decade. While the decline has been fairly uniform across regions, the biggest reduction has been in London, where the home ownership rate has fallen from 57% to 47%. The counterpart to this has been robust growth in the private rental sector; for example, 30% of households in London now rent.
The RICs say that their surveyor members report on balance an expectation of no price rises over the next 12 months representing the joint lowest reading since February 2013. Regionally, there continues to be significant variation in the house price indicator. London, exhibits the weakest feedback, with a net balance of -47% of respondents citing further price declines.
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.
May 11, 2018