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Spotlight Richmond 2016 S avills World Research UK Residential Spotlight Richmond 2016 savills.co.uk/research 03 Spotlight | Richmond Market overview high street all add to the area’s A PERFECT COMBINATION appeal. Yet for all this open space, it is only nine miles from Richmond provides the ideal balance between town London’s West End and 19 minutes by train to Waterloo, and country, making it a highly sought-after location making it very accessible to the centre of London. ichmond upon Thames It wasn’t until the 18th century is an affluent town in that further development Property prices R south-west London. occurred, shaping the Richmond In 2015, the average sale price As its name suggests, it we know today. The building in Richmond was £1m, 32% occupies a prime spot on the of Richmond Bridge between higher than the average for the south side of the Thames, 1774 and 1777, making it the borough of Richmond upon some 10 miles away from oldest surviving Thames bridge, Thames according to the Land the centre of the city. the many Georgian terraces, Registry. Richmond’s property It is a highly sought-after such as those around Richmond prices achieve a premium over location for young professionals, Green, and the addition of the neighbouring locations and families and even the famous railway station in 1846, all helped comparing the average sale price to live. The market offers a wide Richmond become the well of terraced houses highlights this. range of homes, from smaller loved and connected town In 2015, the average price paid flats and cottages to large it is today. for a terraced house in Richmond Georgian and Victorian terraces One notable claim to fame is was £1.2m, compared to £941k in and detached family homes that Richmond Hill commands St Margarets, £765k in Strawberry on Richmond Hill and around breathtaking aspects down to Hill and Teddington, and £618k in the park. the river that are the only views Petersham and Ham. Richmond has strong royal in England to be protected by an Living in close proximity to one connections and was named Act of Parliament, the Richmond, of Richmond’s many green spaces after Richmond Palace which Ham and Petersham Open comes at a price. Properties within was built by Henry VII in the Spaces Act passed in 1902. 100m of green space command 16th century. The palace was Its location on the Thames a premium of 12% compared to located on the banks of the and river promenade, Richmond others in the area on a £ per square Thames and survived until Park, the largest of the capital’s foot basis and if the property has 1650 when it was sold and eight Royal Parks stretching a direct view of the park/green, the knocked down. to 2,500 acres and attractive premium increases to 24%. Richmond offers a wide variety of homes Prime property values in values range from around £1,300 £30 per square foot annual rent Richmond have increased per month for a one bed to over in Richmond is around half the significantly over the past 10 £4,300 for a property with five prime central London rent. years, rising by 105.4% on or more bedrooms, according A good balance between average. However, following such to Rightmove. Similar to the supply and demand means that significant price rises, the rate of sales market, rents achieved in prime residential rental values growth has slowed recently, with Richmond command a premium have remained relatively flat average values up only 2.3% over to the wider area. This is most over the past year. Over the the 12 months to March 2016. evident for larger properties, past five years, prime Richmond This is due to pressures from the as rental values for a five bed rents have increased by 5.8%, increased stamp duty tax burden property in Richmond are on outperforming the south west and political uncertainty generated average almost double rents London average. by the London mayoral election paid in Teddington. and EU referendum. Although Richmond is an Demand expensive option compared Over three quarters of buyers Rental market to nearby areas, it does offer in Richmond since 2014 are Across the four areas highlighted a significant discount to prime purchasing their main residence, on the map (Figure 1), rental central London. The average according to our analysis, while FIGURE 1 The housing market around Richmond in 2015 A look at where the sales happened and at what value KEY ● £2m+ ● £1m to £2m A ● £500k to £1m ● Under £500k B D Average sale Areas price in 2015 A Richmond £1m B St Margarets £720k Strawberry Hill C £682k C and Teddington Petersham D £660k and Ham Source: Savills Research using Land Registry 2016 a small proportion are buying an investment or second home. Of those buying a main residence, 70% are upsizing from their current property. These numbers emphasise Richmond’s popularity with families. Living close to good schools is a top priority, with 64% of buyers having one or more children. The borough is home to 52 schools, with various highly regarded state and private schools being located in Richmond itself. The majority of buyers move from within the borough of Richmond upon Thames with those from central London A prime spot on the south side of the Thames boroughs accounting for 6% of purchasers. International buyers, FIGURE 2 although not dominant in this What would the same property sell or rent for on part of prime London, are also our featured roads? an important source of demand. Since 2014, they have accounted 2 BED, 2 BATH APARTMENT OF 1000 SQ FT for 23% of purchasers, with families from Western Europe the Street Name Postcode Sale Price Rental Value* most prevalent. In the rental market, just over Kings Road TW10 £900k - £1.1m £2,300 - £2,600 50% of tenants are from overseas. In a similar pattern to the sales Riverdale Road TW1 £800k - £1m £2,000 - £2,100 market, the majority of tenants are moving within the borough, The Green TW9 £1m - £1.3m £2,900 - £3,500 although there is a slightly higher proportion (11%) moving from Richmond Hill TW10 £950k - £1.3m £2,500 - £3,000 central London. The majority of tenants (66%) are renting for employment relocation, a 4/5 BED PERIOD HOME OF 3000 SQ FT significantly higher proportion than the average across prime Street Name Postcode Sale Price Rental Value* London, as commuting to the key employment hubs from Richmond Montague Road TW10 £3m - £3.75m £8,000 - £10,000 is quick and convenient. n Sheen Road TW9 £2.4m - £2.85m £6,500 - £7,000 £1m Lebanon Park TW1 £2.6m - £2.9m £4,500 - £5,500 The average sale price of a property in Richmond Park Road TW10 £3m - £3.75m £8,000 - £10,000 in 2015 Source: Savills Research *per month Spotlight | Richmond Development UNIQUE SITES Unique developments in the Richmond area present opportunities for buyers seeking new homes he development Grade II listed The Star and Garter in many news stories due to its pipeline in Richmond site on Richmond Hill which will interesting history. T itself is limited, with deliver 86 residential units. Nearby, Teddington Riverside very few schemes under There is more development is a 4.5-acre site owned by City construction currently. activity in the areas surrounding Developments and Dartmouth Development in the area Richmond, however overall Capital Advisors, which has is typified by small-scale, the development pipeline in planning permission for 220 niche schemes such as the the borough of Richmond private residential units due to redevelopment of Richmond upon Thames is on a much launch later this year. St James’ Brewery Stores, which was used smaller scale than other London Brewery Wharf in Twickenham has as Britain’s first poppy factory in boroughs. 110 homes due to complete by the 1920s. Originally a bottling In neighbouring Ham, the end of 2016. factory, the site on Petersham Latchmere House has planning These developments are Road by boutique developer permission for 57 private units. expected to appeal to a wide Banda will deliver 7 residential Used as a hospital during World range of buyers and tenants who apartments with commercial units War One, an interrogation base are attracted to the unique sites at ground floor level. during World War Two and most and properties on offer, further One of the area’s larger recently a young offenders’ adding to the strong demand developments currently under institute until 2011, the site on the already seen in Richmond and construction is London Square’s edge of Richmond Park has been surrounding areas. n Teddington Riverside 2016 Richmond is well placed to draw on this demand as a large Outlook proportion of tenants currently LASTING APPEAL move to the area for this reason. In Richmond, we do not expect a high level of new Richmond is well placed to attract a wide range build stock to come forward of buyers and tenants in the future compared to other locations in London. This means that t is important to assess the flat through 2016 and most of supply will remain relatively outlook for Richmond in the 2017, as the market continues constrained and rents will I context of the wider prime to adjust to the new political and therefore not be suppressed London market. regulatory backdrop. by a high number of properties However, over the medium being brought to the market The sales market term we expect a gradual simultaneously. The Autumn Statement in return to trend rates of price As such, we are forecasting 2014 marked a turning point growth.
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