South-West London 2015 London Market Focus
Total Page：16
File Type：pdf, Size：1020Kb
RESIDENTIAL RESEARCH SOUTH-WEST LONDON 2015 LONDON MARKET FOCUS MIGRATION OF BUYERS HOUSEHOLD INCOME PRICE PERFORMANCE AND FROM CENTRAL LONDON MAP OF LONDON VALUES PER SQUARE FOOT SOUTH-WEST LONDON: RIDING THE WAVE An improving UK economy and a growing number of buyers from central London are underpinning the south-west London residential property market, says Tom Bill Prosperity has flowed into south-west true for UK and European families, typically Over the same period, 35% of people moving London for centuries. banking or legal professionals, some of from Kensington & Chelsea relocated to whom have bought south of the River the six south-west London boroughs of As the River Thames winds from central Thames for the first time. Hammersmith & Fulham, Wandsworth, London into the English countryside, it forms Ealing, Merton, Richmond-upon-Thames and a migratory route for those seeking a less This trend is reinforced by the fact the UK Hounslow. metropolitan lifestyle. economic recovery has strengthened and activity has increased among buyers in all It demonstrates how south-west London Richmond’s status as a royal residence, for areas of London. remains a significant corridor of affluence, example, dates back more than 700 years a fact underlined by a Knight Frank map of and its grand architecture and large green Prices in south-west London started rising household income in London (figure 1). spaces typify the appeal of the south-west strongly at the start of 2013 and Knight London property market. Frank analysis shows 8% of all homes in The result is that price growth in south-west For the purposes of this report, south-west the borough of Richmond grew in value to London has outperformed both prime central London stretches from the comparatively surpass £1 million between 2013 and 2014, London and the rest of the country since metropolitan areas of Clapham, Wandsworth the highest percentage in England and Wales 2013, as figure 2 shows. and Fulham to Wimbledon, Barnes, Chiswick alongside Kensington & Chelsea. The next While the economic fundamentals are sound, and Richmond in the west. two highest boroughs were Westminster and there is a degree of political risk on the horizon, Hammersmith & Fulham (6%). The flow of wealth has accelerated since the including the prospect of further property financial crisis due to price growth in prime Internal migration statistics underline the taxation after May’s general election, which central London of 53% between March 2009 trend. Some 17% of people moving from the has caused prices to soften in recent months. and the end of 2012, driven by its reputation prime central London borough of Kensington This short-term uncertainty means vendors as a safe-haven investment. & Chelsea in the year to June 2013, relocated need to be realistic when setting asking As a result, buyers have increasingly sought to Hammersmith & Fulham. The second most prices. In the longer-term, for reasons that more square feet for their money in areas popular borough outside central London was date back centuries, the market fundamentals like south-west London. This is particularly Wandsworth (7%). remain sound. FIGURE 1 FIGURE 2 London map of average household income in 2014 South-west London price performance (Three-month rolling average, rebased to 100) 120 South-west London UK Prime central London 115 110 105 100 95 Apr-13 Apr-14 Jan-13 Oct-13 Oct-14 Jun-13 Jun-14 Feb-14 Aug-13 Dec-13 Aug-14 Dec-14 Source: Knight Frank / Experian Source: Knight Frank / Nationwide 2 SOUTH-WEST LONDON 2015 RESIDENTIAL RESEARCH BARNES Population : 54,848 (Knight Frank catchment area) Price per square foot: £800 to £1,300 like St Paul’s, which has one of the country’s Price growth in 2014: 6% most successful academic track records. Barnes to London Waterloo: 20 minutes A third of its housing stock is detached Blue Plaques: and semi-detached properties, meaning its Dame Ninette de Valois founder of the Royal Ballet properties have the same sense of grandeur Henry Fielding novelist as areas like Richmond and Wimbledon. AGE OF HOUSING STOCK Furthermore, 60% of properties pre-date 1939, from eras like the Georgian, Victorian and Pre-1900 1900-1939 Edwardian, which are typically in high demand. 1945-1972 Barnes is popular with south-west London 1973-2014 buyers seeking more space for their money Prices range from £800 to £1,300 per square than Fulham but who want to be closer foot and the most in-demand properties are four or five bedroom houses within a 17% 23% 25% to central London than Richmond or Twickenham. 10-minute walk of Barnes Village, which typically range from 2,000 to 3,000 square feet. 36% Its inclusion in the London postal district with the SW13 postcode underlines its Barnes has the highest proportion of relative centrality and Barnes is a 20 minute independent shops in the UK and, despite its proximity to central London, to the south of (Source: Knight Frank, Valuation Office Agency) train journey to London Waterloo. A short walk across Hammersmith Bridge is Barnes is a 100-acre nature reserve, an area PROPERTY TYPE Hammersmith tube station, which is three with wildlife found nowhere else in London. (Source: Land Registry, £750,000-plus sales in 2013/14) stops from the central zone 1 area. Flat Terraced Detached Semi-detached The area’s notable former residents include 57% Buyers typically move from Holland Park, the novelist Henry Fielding and it remains 28% 4% 12% Kensington and Notting Hill and families popular among media professionals, actors in particular are attracted by good schools and singers. CHISWICK Population : 62,771 Price per square foot: £800 to £1,300 Annual growth was 5.5% in 2014 compared Price growth in 2014: 5.5% to 5.1% in prime central London. Chiswick to London Waterloo: 27 minutes In addition to bankers and lawyers, Chiswick Blue Plaques is popular among media professionals and Alexander Pope poet Jack Beresford Olympic rowing champion musicians and Chiswick High Road is home to the Metropolis recording studios. Furthermore, Chiswick is less than 10 AGE OF HOUSING STOCK miles from the major international airport of Pre-1900 Buyers moving to Chiswick typically come Heathrow, which means demand is strong 1900-1939 1945-1972 from the prime central London areas of among airline staff for occupation as well as 1973-2014 Chelsea, Notting Hill and Fulham. for investment properties. 10% The most in-demand properties range from In a similar fashion to Barnes, the area is 21% two and three-bedroom cottages in the Glebe popular among families looking to combine 31% Estate for about £1 million to larger five and six relative proximity to central London, as bedroom family homes in the Bedford Park denoted by its W4 postcode, with more 38% area. Prices range from £800 to £1,300 per indoor and outdoor space and high-quality square foot. schools. PROPERTY TYPE Demand is largely domestic and there are Chiswick High Road contains a mix of high- increasing numbers of buyers already living end independent retail and larger stores Flat Terraced Detached Semi-detached in the area who are taking advantage of and the area has some notable restaurants 64% 25% 2% 9% price growth that, in similar fashion to the including La Trompette and Hedone, both of rest of London, has moderated since 2014. which have Michelin stars. 3 CLAPHAM Population : 54,993 Price per square foot: £700 to £1,000 upper limit. Though the figure currently Price growth in 2014: 8% remains a barrier for buyers, there are Clapham Junction to London Waterloo / instances of ambitious pricing in excess of London Victoria: 8 minutes / 7 minutes £1,000 per square foot that means some Blue Plaques vendors struggle to achieve a timely sale. John Walter founder of The Times newspaper William Wilberforce slavery campaigner Un-modernised houses in Clapham Old Town in excess of 3,000 square feet are AGE OF HOUSING STOCK among the most in-demand properties. Younger buyers are more prevalent in Pre-1900 Clapham has benefitted from growing 1900-1939 Clapham than other areas of south-west 1945-1972 numbers of buyers looking south of the London and typically want to undertake their 1973-2014 River Thames due to strong price growth 13% own renovations. The other popular area is in prime central London since the financial 19% around the 220-acre Clapham Common. 19% crisis. Prime central London’s reputation as a safe-haven investment led to growth of 68% Almost half of the housing stock pre-dates between 2009 and 2014, which means areas 1900 and Clapham Old Town and Clapham like Clapham now provide better value. Common contain a mix of Regency, Georgian and Queen Anne homes. A fifth of properties 49% As a result, price growth was 8% in 2014, are flats, which are popular with buy-to-let which is strong compared to other longer- investors, particularly close to the train stations. PROPERTY TYPE established residential markets in south-west Clapham is often synonymous with early Flat Terraced Detached Semi-detached London. 75% signs of gentrification in London but Michelin 22% 0% 2% Prices range from £700 to £1,000 per square starred dining and boutique shops show the foot, with very few sales that exceed this process is well-advanced. FULHAM Population : 99,186 Price per square foot: £850 to £1,200 from the UK, the area has also benefitted Price growth in 2014: 1.2% from a growing number of European buyers, Rental value growth in 2014: 0.4% particularly in the family house market. The area has high-quality primary schools and Fulham Broadway to London Victoria: 14 mins includes the junior ‘feeder’ school to the Blue Plaques French Lycée in South Kensington, which Gustav Holst composer Mahatma Gandhi Indian political leader makes it a popular area with French buyers.