Putney Property Prices Slip From Record High

But local agent reports sales at prices 15-20% more than a year ago

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putney property pricesThe local property market appears to remain robust despite a slip of 4.5% this quarter from the all time high of over £600,000 seen earlier this year.

Against same period last year the average price for property in SW15 during the second quarter of 2013 is up 6.1% at £579,960.

Flat prices have been lagging the rest of the market and are down over the last year.

Sales growth has been strong with the level of transactions up by over 20% compared with the same three months last year.

Local agent Allan Fulller said:
"With multiple reports of rising prices and increasing activity including the Office of National Statistics announcing this month that across London house prices are up 8.1% on a year ago should alarm bells be ringing? There are many factors that influence the property market but the conditions are converging this year that bring housing back in to the spotlight. Since the recession started in 2007 when Northern rock hit the headlines the number of property transactions had dipped by as much as 50% below normal levels. Mortgage finance has been severely hit and the rental sector has had rapid growth filling the gap for home seekers."

Allan is confident in the Putney market: "A recession is inevitably a time when people are more wary of taking on major commitments. So it is an inevitability that values rise as the pent up demand is beginning to be released. The trouble is that we simply do not have enough property for all, in a towns as immensely popular as Putney the demand and limited supply is pushing up prices way over the London average, in fact in some instances my office is achieving sales at prices 15-20% more than a year ago!"

"Recessions, virtually by a natural cycle always ease and have to end, and even if conditions do not immediately turn into boom there is always another growth period as confidence seeps back and people and companies with money start to unlock their coffers and spend again."

"Over recent years there have been many misguided suggestions that we would become like parts of continental Europe and be renters for life. This is simply wrong as I have been saying throughout this period that no matter what the doomsayers love to predict people in Britain will always want to eventually own their own home, it is part of our psyche."

"Conditions only now are making buying more possible as mortgage funding eases and as all signs are growing especially for London, that the recession is fading. The latest economic statistics are considerably better, the new Governor of the Bank of England announcing the likelihood of interest rates remaining low is a tremendous boot for everyone."

Can it all end in tears?

"All economic predictions are conjectural but bear in mind that the recession started 6 years ago, so there has to be a period of property playing catch up. Having seen every market come and go locally for over 35 years I am convinced that the current rate of price acceleration will slow naturally but growth will continue and be back to, and remain ahead of general inflation as the nation renews its love affair with home ownership, after all we all want our own castle, however modest!"

"A combination of central government policy, confidence from house builders to vastly increase new construction and more mortgage finance will ensure that there are more home created, the one thing that is guaranteed is that there is an ample supply of buyers."

The June data from Land Registry's House Price Index shows that London saw a sharp rise in prices during the month up by 3.1% compared with May. It remains the best performing property market in England and Wales rising by 6.9% over the last year to £383,930.

For the country as a whole prices only rose by 0.8% over the year which takes the average property value in England and Wales to £162,621.

The most up-to-date figures available show that during April 2013, the number of completed house sales in England and Wales increased by 12 per cent to 48,367 compared with 43,252 in April 2012.

The number of properties sold in England and Wales for over £1 million in April 2013 increased by 45 per cent to 703 from 484 in April 2012.

The West Midlands was the only region to see an increase (8 per cent) in repossession sales between April 2012 and April 2013. The region with the greatest fall in the number of repossession sales was London where repossessions dropped by 37 per cent (April 2013 compared with April 2012).

Putney Property Prices (April - June 2013)
Area Detached Sales Semi-Det Sales Terraced Sales Flat/
Sales Total Ave Total Sales
SW15 1 - - 1821875 4 981397 17 480499 21 810993 42
SW15 2 1500000 1 1205000 2 810500 12 432405 42 557842 57
SW15 3 2762500 2 850,000 1 930000 1 351443 41 482537 45
SW15 4 - - - - 302000 1 164462 13 174286 14
SW15 5 - - 1002500 2 552579 17 369293 15 498184 34
SW15 6 2680000 2 1625000 2 959375 4 448936 26 709407 34
Total 2477000 5 1436591 11 786021 52 392471 158 579960 226
Last quarter 18.5% -37.5% 16.5% 266.7% -16.2% 57.6% -4.6% 25.4% -4.5% 32.9%
Last year 13.0% 66.7% 51.9% 10.0% 3.8% 13.0% -2.1% 23.4% 6.1% 20.9%
Last three years 5.5% 25.0% 22.1% 10.0% 24.1% 18.2% 7.9% 23.4% 12.8% 21.5%
Last five years 90.3% 66.7% -11.6% 83.3% 9.3% 23.8% 9.7% 29.5% 14.7% 30.6%
Last ten years - - 81.2% -8.3% 84.0% -11.9% 72.9% -28.5% 99.5% -22.6%

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.

August 23, 2013