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Research article

Chestertons Monthly Property Markets Review July 2014

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House price growth in the capital appears to be moving away from prime central London.

David Ramsdale, Research Analyst

Report Highlights

  • The National Association of Estate Agents (NAEA) has reported a noticeable slowdown in first time buyers’ in June.
  • At a regional level four of the 10 regions across England and Wales recorded a fall in average monthly rental values.
  • In the second quarter of this year take-up levels in central London increased while availability saw a fall in office space.
  • Consumer confidence reached its highest reading since April 2010 as the GfK consumer confidence index increased by five points to -16.


The National Association of Estate Agents (NAEA) has reported a noticeable slowdown in first time buyers’ in June, with sales falling 20% from May. The struggles are particularly apparent in the 18 – 30 years old age bracket which accounted for just 3% of first time buyer sales last month, the lowest reading since the NAEA started tracking sales. The fall in first time buyers’ could be a result of the Mortgage Market Review, introduced in April, starting to impact on the mortgage market, along with the recent announcement from the Bank of England limiting the number of mortgages above 4.5 times borrowers’ income.

House price growth in London appears to be moving away from prime central London and into the popular zones three and four. For the third month in a row house prices in Waltham Forest increased at a faster pace than any other borough in the capital, up a startling 26.3% in the year to May. House prices in Lambeth also increased by more than a quarter over the same period with Southwark, Hackney and Wandsworth all saw growth above 20%. In prime central London house prices in Westminster increased by 18% followed by 14.5% in Kensington and Chelsea, which remains the only borough where the average house price is above £1 million.

Consumer confidence reached its highest reading since April 2010 as the GfK consumer confidence index increased by five points to -16. In regards to personal finance over the last 12 months the reading moved up five points to -16, the highest figure since July 2012. The outlook for personal finance over the next year increased by seven points to zero, eight points higher than
the same stage last year. The ‘now is a good time to save’ index improved by six points in July to -14, a point higher than July 2012.

Council of Mortgage Lenders mortgage data indicates that 16,000 loans were advanced for buy-to-let purposes in May, up 14% on a year. The loans amounted to a total of £2.2bn up 22% in value over the last 12 months. Of the 16,000 loans 8,700 were advanced for buy-to-let house purchase at a value of £1.1bn, signifying increases of 21% and 38% respectively. Meanwhile, 7,100 loans were advanced for buy-to-let remortgage also at a value of £1.1bn, up by 6% and 22% on an annual basis.

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David writes reports on the London, UK and international property markets.

Research David Ramsdale

David Ramsdale

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