Savills World Research UK Residential

Spotlight Barnes and East Sheen 2016

savills.co.uk/research 03 Spotlight | Barnes and East Sheen

Market overview routes. Nowadays, this stretch london living, country lifE of river is well known for the annual boat race between Oxford Demand is strong for the varied housing stock and Cambridge Universities with the race ending just past the and lifestyle these leafy suburbs provide Mortlake Brewery. Richmond Park is a big draw he sought-after river fronted townhouses to large for the area. The vast 2,360 areas of Barnes and 1930s family homes. acres of parkland makes it the T East Sheen sit in the largest of the eight Royal Parks borough of Richmond upon Barnes in London. In East Sheen many Thames. Although historically Barnes is a unique location with large homes are located around considered part of Surrey, the Thames bordering it on its perimeter, commanding a these days Barnes three sides and is well known for significant premium of 20% and East Sheen are within its village feel. Until the beginning compared with those located travelcard zone three but of the nineteenth century, close by, on a £ per sq ft basis. they have retained their Barnes was regarded as remote leafy, village feel. and inaccessible however this Property prices These neighbouring changed with the construction In 2015, the average sale price districts have many similar of Hammersmith Bridge in 1827 in Barnes was £1.4m, 53% attributes, attracting young and the railway in 1846. This higher than neighbouring East professionals and families for infrastructure opened up Barnes Sheen at £935k according the community and country feel, to development and the high to Land Registry. Both areas while still retaining the buzz of quality of houses available drew command a significant premium London living. demand from early commuters, to the average sale price across Families in particular are drawn a trend which continues today. Greater London (£540k) and to the area due to the high Richmond upon Thames (£767k). number of houses available. East Sheen Prime property values in Houses account for 60% of East Sheen, including Mortlake, Barnes and East Sheen have properties in Barnes and East has a more industrial past than increased significantly over the Sheen, compared with 40% neighbouring Barnes. Historically long term with price growth of across Greater London and 26% the area was characterised by 130.4% and 41.5% in the past in inner London. enterprises such as potteries, ten and five years respectively. The housing stock varies tapestry works and the Mortlake In 2015, house price growth hugely ranging from Edwardian Brewery which drew on the outperformed neighbouring maisonettes, Victorian cottages, proximity to the Thames for trade areas, increasing by around 9.5%

Barnes is bordered by the Thames on three sides compared with the wider prime size. The average rent varies from also prominent. Increasingly, south west London market. around £1,250 per month for a both Barnes and East Sheen are However, over the final quarter 1 bed to over £3,300 per month seen as attractive places to settle of 2015 price growth was for a 4 bed property. for many years. This is reflected marginal due to pressures from by roughly half the buyers and increased stamp duty and Demand tenants in the area moving mortgage regulation. The vast majority of those from within Richmond upon buying property in the area are Thames in 2014/15. The rental market purchasing their main home. A further 28% of buyers As seen in the sales market, rental In 2014/15 only 3% of homes and 19% of tenants moved from values in Barnes and East Sheen were bought as an investment, the more expensive markets north are higher than the borough wide a significantly lower proportion of the Thames, attracted by the average. The median monthly than across the wider prime relative value the area offers and rent is £2,600 in Barnes and London market. larger properties and gardens. £1,900 in East Sheen according to The most popular reasons Although not traditionally Rightmove data. In both locations, for tenants to rent in the area is dominant in this part of prime rental values vary significantly for the lifestyle with those moving London, international residents depending on property type and due to employment relocation are an important source of

Figure 1 The housing market around Barnes and East Sheen A look at where the sales happened and at what value*

KEY ● £1m+ ● £750k - £1m ● £500k - £750k ● Under £500k

Barnes

East Sheen

Source: Savills Research using Land Registry *11 months to Nov-15 2016

demand for housing in the area. In 2014/15 they accounted for around 29% of buyers and 42% of tenants with those from Western Europe being the most prominent buyer group. Excellent local schools such as the Swedish School in Barnes and St Paul’s School make the area desirable for families from all over the world. With four train stations and nearby Hammersmith underground station, commuting to the key employment hubs is quick and convenient. The largest employment industry East Sheen has retained its leafy, village feel for people living in Barnes and East Sheen is the Professional, Figure 2 Scientific and Tech sector closely followed by the What would the same property sell or rent for on Information and Communication our featured roads? sector accounting for 18% and 12% of households respectively, Terraced house, 4 bed, 1,500 – 2,000 sq ft according to the 2011 Census.

With the Professional, Scientific Location Postcode Sale Price Rental Value* and Tech industry forecast to grow to be the largest employment Cleveland Gardens SW13 £1.5m - £1.8m £3,750 - £4,750 sector in central London over the next five years, the area is Elm Grove Road SW13 £1.6m - £2m £4,250 - £5,500 well placed to draw on the newly created wealth that will result. n Church Avenue SW14 £1.2m - £1.325m £3,000 - £3,500

Spencer Gardens SW14 £1.3m - £1.5m £3,200 - £3,800

Semi detached house, 5 bed, £1.4m 2,500 – 3,000 sq ft The average sale price of a property in Barnes Location Postcode Sale Price Rental Value*

Madrid Road SW13 £1.8m - £2.5m £4,750 - £7,000

Westmoreland Road SW13 £2.25m - £3m £5,750 - £8,000 £935k Palewell Park SW14 £1.95m - £2.4m £5,000 - £6,000 The average sale price of a property in East Sheen Christchurch Road SW14 £2.3m - £2.75m £6,000 - £7,000

Source: Savills Research *per month Spotlight | Barnes and East Sheen

Development Unique riverside developments

The historic Stag Brewery site on the banks of the Thames is set to be the site of an extensive new riverside development

ost development as well as further mixed Harrods Village put the in Barnes and East uses making it an extensive area on the map for waterside MSheen is on a smaller new waterside development. living in south west London, scale than neighbouring The site attracted the attention appealing to a wide number of areas such as Hammersmith of Singaporean developer, buyers and tenants from all over and Putney. However, one Reselton, who bought it for the world. As the development development in the area has £158m at the end of 2015. at Stag Brewery comes forward, made recent news. A local comparison, albeit we expect to see a similar level The Stag Brewery is a prominent on a smaller scale is The of demand. n 21.2 acre site located on the Harrods Village in Barnes. banks of the Thames. Completed in 2000 it has Situated between Barnes and become a much sought-after East Sheen, and across the river riverside development. Most from Chiswick, it is positioned of the development was £158m firmly in prime south west London. converted from a former Amount paid for the Although currently at the Harrods warehouse and Stag Brewery site pre-planning stage, it has the it includes 250 apartments by the developer potential for around 850 homes and penthouses.

Harrods Village Stag Brewery 2016

The rental market Over the next five years the Outlook London economy is forecast to The Market in context continue strengthening, which will underpin demand for prime rental property over the medium term as Looking forward, Barnes and East Sheen will more people move to London for continue to appeal to a wide range of buyers employment opportunities. In particular, rental growth will be supported by the strong t is important to assess is still a market for stock that is forecasted growth in the number the outlook for Barnes and priced appropriately, particularly of employees in the Professional, I East Sheen in the context of for best-in-class properties. Scientific and Tech sector, which the wider prime London market. We expect price growth in is already the dominant profession prime London to remain broadly in Barnes and East Sheen. The sales market flat through 2016 and most of Unlike other parts of The prime London market 2017 and after that a gradual London, where there is concern has seen price growth return to trend rates of price surrounding the high levels of new slow significantly and has growth over the medium term. build stock coming to the market, experienced small falls in some Looking forward, Barnes and there is not a significant pipeline high value locations. East Sheen will remain desirable in the area. As such, rents will not This is a result of higher locations in prime London. The be put under pressure by large transaction costs from area is unique in its location, amounts of stock being brought successive increases in stamp close to the river and vast parks, to the market simultaneously. n duty rates. In addition, the which will continue to appeal to increased mortgage regulation, a wide range of buyers whether testing the amount people can local, from north of the river or borrow against their earnings, is international. In particular, families a constraint on the market. looking for more space and larger Families will be drawn However, against this new fiscal gardens alongside good schools and regulatory backdrop, there will be drawn to the area. to the area

Savills team

Kirsty Bennison Michael Randall Shenagh Richardson Paul Zammit Rob Pollock Residential Research Head of Sales Head of Sales Head of Lettings Director 020 7016 3786 East Sheen Barnes Barnes & East Sheen Residential Land [email protected] 020 8018 7775 020 8939 6913 020 8939 6914 020 7409 8114 [email protected] [email protected] [email protected] [email protected]

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