A local market review

Transcription

1 Putney, SW15 A local market review

2 Putney snapshot Location Putney is located in the south-west of. It is served by good transport links, with the shortest journey to Waterloo being 18 minutes. Its popularity as a riverside residential location means it has above average house prices in comparison with London overall and experienced strong house price growth of 13% over the last year. House price growth over the last year 13% Putney is a picturesque riverside location in the London borough of. It s home to boutique shops, restaurants, bars and is surrounded by vast green spaces; in particular, Park is on its doorstep and Richmond Park is just two miles away. Nearby Putney Village offers a tranquil location as it is surrounded by Putney Heath. Putney is a sought after residential area, popular with young professionals and students. Boasting great transport links, it is easy to get into central London and only 18 miles from Heathrow Airport. Hyde Park Westfield South Acton Hyde Park Corner Kensington Palace Shepherd s Bush Knightsbridge Hammersmith Chiswick Park Victoria Gloucester Road Earls Court Turnham Green Sloane Square Hammersmith Chiswick House and Gardens West Brompton Fulham Park Imperial Wharf London Wetland centre Battersea Park Parsons Green Barnes Bridge Battersea Park Putney Bridge Hurlingham Park Mortlake Putney Town Clapham Common East Putney University of Roehampton Richmond Park Park Clapham Junction Common Putney Heath Clapham South Southfields Balham Wimbledon Common Earlsfield

3 London housing market overview In the post-recession recovery period London s housing market has performed strongly, outperforming the wider UK market by a significant margin. Prices across the city are now 43% above their previous peak. Some of the strongest growth occurred in 2014 with annual growth peaking at 21%. Towards the end of the year and moving into 2015 activity has slowed and growth started to cool. However, this is something we anticipated and we welcome an orderly slowdown. Fears of a London house price bubble have subsided and the market is maintaining sustainable and robust growth, with 9% inflation in Moreover, activity in the new build market remains extremely strong and demand is high, with 67% of the 51,448 new build homes under construction already sold. This is the highest absorption rate of new build stock in recent years. The government has recently announced more favourable terms for the Help to Buy scheme in London. To reflect the higher prices, first time buyers in London will have access to a 40% Help to Buy loan (compared with 20% currently). This loan is interest free for five years and offered on new build properties up to 600,000. This incentive is likely to stimulate the market by encouraging first time buyers. This increase in demand should have the roll-on effect of further boosting the building market. London s new build market 70,000 60,000 Tileman House, Putney SW15 80% 70% 50,000 60% Private units under construction 40,000 30,000 20,000 50% 40% 30% 20% 10,000 10% average Sold Unsold Proportion Sold (RHS)

4 Local demographic and economic trends Tenure profile The population of the London Borough of currently stands at 322,780, having increased by 28% from 252,860 in It is expected to grow by a further 6% to 342,375 by Despite this marked increase in population and the resulting demand for homes in the area, only 5,114 new homes have been built across the borough since This suggests an undersupply of housing of nearly 1,500 homes, compared with target levels. So, as is typical of London, demand for homes hugely outweighs supply. Putney itself has approximately 60,000 residents, which makes up around 20% of s population. It attracts a young and relatively affluent demographic, with a high share of young singles and students. 30% of the population is aged between 25 and 34; this compares with 14% for the UK as a whole. As a result, there is a high demand for privately rented property; the proportion of renters has increased from 22% in 2001 to 32% now. However, by London standards, rents are fairly reasonable despite increasing by 6% over the year, they stand at 1,834pcm, lower than the 1,889pcm across and 2,080pcm across London. Average rental values in Proportion of households 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 20% 26% 22% 32% 52% 46% enjoys high employment of 78.5% in comparison with the London average of 72.2%. In addition, earnings in average at 40,820, 26% higher than the London average of 32,297. 1,834pcm Social rented Private rented Owner occupied Property prices in the areas surrounding Putney

5 Local housing market trends Many people who start by renting in Putney decide to settle in the area and buy a home there. As a result, the local market is buoyant, experienced growth of 14% last year and Putney had growth of 13%. However, this strong growth is a relatively recent development, with prices in prior to 2012 growing broadly in line with the London average. However, since then, growth has diverged, with outperforming the London average; has experienced 43% growth since 2012, compared with 36% for London. According to Molior, the average new build property price in Putney is just below 1,000 psf. Comparatively, prices in Fulham currently sit at 1,100psf, making Putney a more affordable choice. More specifically, the latest data shows units in SW15 (Putney) sold for an average of 715,366, broadly the same as the borough average, but 26% higher than the London average of 569,418. However, Putney remains 24% more affordable than the nearby area of Barnes and is significantly cheaper than Fulham, where properties sell in excess of 1million. Focusing on flats, apartments in Putney are achieving average prices of 536,728, 11% higher than the London average of 483,840, but nearly 50% lower than in ever popular Fulham. However, given its close proximity to higher value areas such as Fulham and Barnes, it is only a matter of time before Putney s prices rise to be in line with its more affluent neighbours. Aesthetically, Putney offers the tranquillity of riverside living together with beautiful green spaces. A view of the countryside, city skyline or river have been shown to add substantial value to a property; in fact, our research shows that a riverside location can add around 10% to 20% uplift on the price of a property. These visual aspects together with its reasonable commuter times into central London and relative affordability, mean that Putney offers something strongly sought after and rarely found in London: lifestyle. Average apartment price Putney price comparison 900, , , , , , , , , year growth UK 5% 3% 3% 4% 5% 22% Putney Mortlake Barnes Fulham London 9% 5% 3% 5% 6% 31% Average house price index 200 Average house price index (Base = Dec 2009) London Base

6 Contacts Jennet Siebrits Head of Residential Research Tom Bryant Director Residential Development Sales & Consultancy Mark Collins Chairman of Residential Jack Hudson Sales Negotiator Residential Development Sales & Consultancy Sources CBRE, Molior, Rightmove, tfl.gov.uk (7/01/2016) Disclaimer 2015 CBRE CBRE Limited confirms that information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt their accuracy, we have not verified them and make no guarantee, warranty or representation about them. It is your responsibility to confirm independently their accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE. Images provided are computer generated CBRE Ltd.