Chestertons estate agents

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House price rises exceed average earnings

Chestertons estate agents

Last month we reported that some parts of London had seen house prices rise by more than £500 a day on average, driven by a rush to complete transactions ahead of a 3% stamp duty hike on additional home purchases and increased interest from overseas buyers tempted by the weak pound. Price rises in Kensington & Chelsea slowed or even fell backwards in March, but some boroughs continued to see very strong gains, with the latest data showing homeowners in Lewisham and Hackney seeing daily house price rises of almost £400.

Since the turn of the year average price rises in Lewisham have risen by almost £300 more than the amount the average Londoner is paid for a day’s work. Despite reports of a slow-down and ongoing buyer uncertainty ahead of the EU referendum vote, a flurry of sales activity in first three months of 2016 saw prices in some boroughs rise by up to £400 a day, with Lewisham (£385) and Hackney (£343) topping the list. Barking & Dagenham (£293), Hillingdon (£279) and Brent (£278) all surpassed daily rises of £250, while the only four London boroughs that saw daily increases lower than average London gross pay of £94  were Merton (£88), Hounslow (£82), Haringey (£63) and Bromley (£58).





Guy Gittins, Executive Director at Chestertons, comments: “There’s been a lot of negative talk of markets softening and prices set for serious falls, if not a full-on crash, but the doomsayers are conveniently overlooking really strong buyer demand in the first three months of this year. It’s true that in central London these rises seem to have flattened off in the past few weeks, but those who are talking of a bubble or a crash should remember the basic principles of supply and demand.

“Put simply, there just aren’t enough houses on the market to satisfy demand, and when you factor in the rush from landlords trying to beat the 1st April stamp duty surcharge on additional homes, these strong price rises in London since the turn of the year aren’t all that surprising.





“Even before the extra stamp duty on second homes was introduced, we were seeing plenty of owner-occupiers in the market, with a 300 per cent increase in the number of buyers registering with certain Chestertons branches between January and February. While some were pushed aside to an extent in the buy-to-let stampede, you can appreciate with daily gains of this magnitude why the imperative to get on to or move up the property ladder in London is so strong,” Gittins continues.

Graham Stubbs, Sales Manager in the Islington office of Chestertons, says: “Since before Christmas we have seen a steady stream of would-be purchasers, and it’s been a real mix of first-time buyers, second-steppers, buy-to-let investors and people looking for a London pad as a second home or pied-à-terre.

“Take the amazing daily price rises experienced in Hackney, for instance – in London the general trend has been eastwards for some time, and within that people are keen to buy as close to established areas of value growth as they can,” Stubbs adds. “Good transport links are also a strong pull factor, and with the extended Overground network in play across north-east London and the likely impact of Crossrail 2 as and when it arrives, savvy buyers know that values are only going to move one way,” Stubbs concludes.

s 2015, Chestertons offers clients access to a full range of services including residential sales and lettings, property and block management, professional valuations, investment, leasehold services, residential development consultancy and property refurbishment and sourcing. Chestertons has also been shortlisted as both UK Sales Agency and Letting Agent of the year in the 2016 RESI Awards.

Inner/Outer

Borough

Mar-16

£/day

Inner

Lewisham

£473,303

385

Inner

Hackney

£691,969

343

Outer

Barking & Dagenham

£330,515

293

Outer

Hillingdon

£400,254

279

Outer

Brent

£493,134

278

Outer

Redbridge

£415,574

247

Outer

Waltham Forest

£435,021

246

Inner

Lambeth

£608,415

243

Outer

Barnet

£511,787

238

Outer

Ealing

£507,058

226

Outer

Harrow

£436,322

224

Outer

Newham

£355,766

223

Inner

Southwark   

£621,656

223

 

Inner London

£737,898

219

Inner

Camden

£874,301

210

Inner

Wandsworth

£633,121

207

 

London

£534,785

197

Outer

Croydon

£379,887

196

Inner

Westminster

£1,064,308

189

Inner

Tower Hamlets

£547,916

187

 

Outer London

£439,039

184

Outer

Enfield

£386,047

183

Inner

Greenwich

£405,099

174

Outer

Havering

£366,417

173

Outer

Kingston upon Thames

£461,587

171

Inner

K & C

£1,380,076

169

Inner

Islington       

£722,018

166

Outer

Bexley

£331,613

155

Outer

Richmond upon Thames

£672,262

153

Inner

H & F

£832,590

136

Outer

Sutton

£360,135

105

Outer

Merton

£517,271

88

Outer

Hounslow

£415,267

82

Outer

Haringey

£577,300

63

Outer

Bromley

£427,562

58

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