Area's resilience in testing times seen as platform for price increases this year
Property in Elsynge Road went for over £3million. Picture: Google Streetview
February 12, 2020
The latest sales data for the SW18 postcode area shows a continuing picture of the area performing relatively well compared to other parts of London. Local agents are now hoping for a Spring bounce in the market.
There have been 171 sales reported so far for the fourth quarter of last year at an average price of £773,941. Although turnover is low by historic standards the number of transactions is likely to be boosted by late reported sales which suggests the trend of activity holding up better in Wandsworth than other areas in the capital is continuing.
The average price of property appears to have remained broadly unchanged for the year with a rise of just 1%
Demand seems to exist for all types of properties despite the political and economic uncertainty. Buyers are still prepared to pay large sums for scarce family properties with the top price sale during the period being for a semi-detached house in Elsynge Road that went for £3,150,000.
High prices are also being paid for properties in Berkeley Group's riverside development at Discovery House with £2,469,000 being paid for an apartment with views of the Thames at Battersea Reach.
Property Prices in Wandsworth SW18 (October - December 2019)
|Sales||Overall average||Total sales|
|Change in quarter||-||-||-18.5%||-31.3%||-0.4%||-42.1%||10.7%||-57.0%||7.9%||-50.7%|
|Change in year||-||-||-9.1%||-31.3%||1.0%||-19.5%||2.8%||-41.1%||1.0%||-34.5%|
|Change in three years||-||-||-31.0%||-26.7%||-6.1%||21.6%||-8.9%||-41.8%||-4.1%||-26.6%|
|Change in five years||-||-||18.2%||10.0%||7.1%||1.6%||12.0%||-66.7%||30.4%||-52.6%|
|Change in ten years||-||-||15.5%||-35.3%||63.5%||-54.7%||66.3%||-46.1%||49.7%||-49.3%|
A local estate agent commented, "The local property market has had everything thrown at it, political uncertainty, Brexit and a range of tax measures designed to suppress demand but people still want to come and live in Wandsworth. What's driving it is hard to pin down but the US embassy, improved transport links and the consensus among young professionals that this is a good place to make a home in London are all factors.
"What is really encouraging about the latest sales is that they have broadened out. It is easy to sell a high quality family house or a flat with a river view because of their scarcity value but buyers are also being found for fairly bog standard flats.
"With the demand having been so resilient in the most testing of times I think we can look forward to some upward movement in prices over the Spring and these will be sustained as long as the government doesn't make a pig's ear of the Brexit negotiations."
Discovery House, Battersea Reach
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.
“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.