Fulham Property Prices Mark Time

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Interest focused on houses as turnover remains anaemic

The Fulham property market appears to be marking time with relatively few transactions and little movement in price.

Over the last twelve months prices have risen on average by 3.3% although most recently the level is being boosted by the proportion of sales as opposed to houses increasing. Flat prices have been weak with the average falling by 16.3% in the SW6 post code area according to the Land Registry.

According to the Nationwide House Price Index prices in London were down for the first time in eight years in September. It was the weakest performing region in the country with prices down by 0.6% year on year. Overall prices in the UK were up by 2.0% over the same period.

Robert Gardner, Nationwide's Chief Economist, said, “The annual rate of house price growth remained broadly stable in September at 2.0%, compared with 2.1% in August. Housing market activity, as measured by the number of housing transactions and mortgage approvals, has strengthened a little in recent months, though remains relatively subdued by historic standards.

“Low mortgage rates and healthy rates of employment growth are providing some support for demand, but this is being partly offset by pressure on household incomes, which appear to be weighing on confidence. The lack of homes on the market is providing ongoing support to prices.”

The direction of price movement is confirmed by the Royal Institution of Chartered Surveyors (RICS) which is also saying that prices are declining in London.

The latest report from the RICS report on says that the number of buyers and sellers is falling and sees the short-term outlook for prices as continuing to be poor. Most surveyors are predicting lower prices over the next three months.

They also believe the rise in base rates this month will also depress the market with around four million mortgage seeing a rise in interest rates as a result of the Bank of England's decision to increase rates by 0.25% to 0.5%.

Simon Rubinsohn, RICS' chief economist said, "The combination of the increased cost of moving, a lack of fresh stock coming to the market, uncertainly over the political climate and now an interest rate hike appears to be taking its toll on activity in the housing market.

"A stagnant second-hand market is bad news for the wider economy, not just in terms of spending, but also because it restricts mobility."

Updates on the local property market are regularly published in the Fulham newsletter.

Fulham Property Prices (July - September 2017)
Area	Detached	Sales	Semi-det	Sales	Terraced	Sales	Flat/ mais	Sales	Overall ave	Total sales
SW6 1	0	0	0	0	1467500	2	1084135	24	1113625	26
SW6 2	0	0	1700000	1	2215000	5	851980	29	1070926	35
SW6 3	0	0	0	0	2157321	14	590833	6	1687375	20
SW6 4	2481100	1	1950000	1	1719375	4	758794	24	983988	30
SW6 5	0	0	0	0	1856311	11	886214	7	1479051	18
SW6 6	0	0	3075000	3	1662500	8	693301	18	1207049	29
SW6 7	0	0	0	0	1366500	16	763600	10	1134615	26
Total	2481100	1	2575000	5	1777890	60	837302	118	1200169	184
Change over quarter	-	-	56.4%	0.0%	3.6%	39.5%	7.3%	-29.3%	20.3%	-15.2%
Change over year	-	-	-7.6%	150.0%	5.1%	25.0%	-12.7%	-16.3%	3.3%	-3.7%
Change over three years	-	-	7.3%	150.0%	-8.3%	-41.7%	11.7%	-36.9%	1.7%	-37.0%
Change over five years	-	-	63.8%	66.7%	30.6%	-56.2%	60.4%	-36.2%	35.6%	-43.4%
Change over ten years	-	-	129.8%	-37.5%	83.0%	-63.2%	101.8%	-65.1%	98.8%	-63.9%

 

 

February 23, 2018