As sales of £3 million plus properties warm up Fulham's winter market
Perrymead Street. Picture: Google Streetview
Though property sales in Fulham remained sluggish at the end of 2019, there was some seasonal cheer for Fulham's estate agents and developers.
As in previous quarters, the latest figures from the Land Registry show demand continuing at the very top of the market in SW6, with a number of homes changing hands for above £3 million.
They included two terraced 'lion' houses on the Peterborough Estate south of Parsons Green - one in Perrymead Street which fetched £3,875,000 and a second in neighbouring Chipstead Street sold for £3,600,000.
View from penthouse in Lillie Square
The highest priced property meanwhile was a 13th floor penthouse in the Lillie Square development on Seagrave Road, which fetched £4 million.
Though this was actually a resale, there also appeared to be some renewed demand for new homes on developments including Mackenzie House in Lillie Road, Cawthorn Apartments in Fulham High Street and Fairwater House in Chelsea Creek, pictured below, where nine flats were sold between October and December.
The majority of terraced homes - around 30, though this number may rise with late entries to the Land Registry - changed hands for between £1 million and £2 million, as well as around ten selling for below the million mark. This meant the overall average price remained steady at £1,644,480 - a tiny drop of 1.8% from the previous quarter, but a rise of 3.9% over the year.
The average price of flats was also stable, rising by 1.8% over the previous quarter and a small 0.9% over the same period in 2018.
|Fulham Property Prices (October - December 2019)|
|Sales||Overall ave||Total sales|
|Change over quarter||-||-||-1.8%||-33.3%||1.8%||-24.8%||-4.7%||-28.8%|
|Change over year||-||-||3.9%||-27.0%||0.9%||-13.4%||-3.8%||-19.8%|
|Change over three years||-||-||-2.5%||-6.1%||-23.6%||-39.4%||-9.2%||-31.8%|
|Change over five years||-||-||-7.3%||-28.1%||-4.5%||-46.7%||-6.0%||-41.6%|
|Change over ten years||-||-||74.1%||-61.7%||69.5%||-34.9%||53.5%||-46.9%|
At the end of a decade however, the figures demonstrate the rising value of property over the longer term. Compared with the same period ten years before - the last three months of 2009 - the price of terraced houses was up by 74.1% and flats by 69.5%.
As we emerge from winter with the decision over Brexit behind us, agents say they are beginning to see the beginnings of a 'Boris Bounce'. Chestertons, who have three offices in SW6, say the impact of the General Election on the residential market has been dramatic, especially in London.
The agent says: " The political certainty that a Conservative government offers – including Brexit done and dusted and the removal of the threat of opposition parties’ more extreme policies (e.g. rent control) – has brought buyers back to the market in abundance.
" What is lacking now is stock, vendors have yet to come to the party in anything like the same numbers, which is having a positive impact on prices. While prices in the wider Greater London market are still falling on an annual measure, the prime locations are seeing a return to modest growth and Chestertons has seen multiple bids on a number of properties reflecting the scarcity of available stock."
Local agent Haus Properties also strike a positive note saying: " Post-election, we have noticed an increase in people requesting valuations, which was further revealed during our busy Christmas period. And we’re hearing from lots of landlords that they are finally ready to sell this year.
"This is great news for the London property market, as it means demand and supply are levelling out, after a period of being a shortfall of housing during 2019."
For the country as a whole prices grew by 1.4% in 2019 to reach an average of £215,282 according to the Nationwide House Price Index. The figures from National Statistics show a 2.2% rise to November 2019 to an average of £235,298.
Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said, “January saw a further modest pick-up in annual UK house price growth to 1.9%, from 1.4% in December. This follows twelve 12 successive months in which annual price growth had been below 1%.
“Indicators of UK economic activity were fairly volatile for much of 2019, but the underlying pace of growth slowed through the year as a result of weaker global growth and an intensification of Brexit uncertainty.
“Recent data continue to paint a mixed picture. Economic growth appeared to grind to a halt as 2019 drew to a close, though business surveys point to a pickup at the start of the New Year. “
The Royal Institution of Chartered Surveyors’ (RICS) November 2019 UK Residential Market Survey reported that key measures of buyer demand point to sales remaining in negative territory, the uncertainty surrounding the 2019 General Election and Brexit being the likely cause of suppressed activity. However, there is an expectation that a more stable trend is likely to emerge over the coming three months.
The Bank of England’s Agents’ summary of business conditions – 2019 Q4 reported that the housing market remained subdued, mainly due to the October Brexit deadline and the General Election. Contacts reported that house prices were modestly down on a year ago in the south and modestly up elsewhere.
Robert Gardner added: "Looking ahead, economic developments will remain the key driver of housing market trends and house prices. Much will continue to depend on how quickly uncertainty about the UK’s future trading relationships lifts, as well as the outlook for global growth.
"Overall, we expect the economy to continue to expand at a modest pace in 2020, with house prices remaining broadly flat over the next 12 months."
Updates on the local property market are regularly published in the Fulham newsletter.
February 14, 2020