Fuelled by a shortage of property and central London demand, house prices in the borough keep defying the national average, reports Tim Harrison
The gulf in prices between London and the rest of the UK, revealed in the latest Land Registry figures, is summed up by the boom in Brackenbury Village and Brook Green. With agents desperate to satisfy demand for high-quality houses, buyers seem prepared to pay exotic amounts to secure their dream home.
Finlay Brewer partner Paul Cosgrove told MoveTo that prices have climbed by around 10 per cent in the past year alone, and are probably now 15 per cent up on 2007’s pre-crash peak.
The firm recently achieved £5million for an exceptional six-bedroom semi-detached villa in Hammersmith Grove, Brackenbury Village – a house which might ‘only’ have fetched £2m-£3m a year or two back.
“That’s what people are prepared to pay at the luxury upper end of the market,” said Paul, adding that many buyers were being bumped out of Kensington & Chelsea, where similar homes could easily fetch between £10m and £14m.
But it isn’t just relatively lower prices that are attracting buyers to W6. The area’s good schools are also an important factor, as are the positive signs of renewal everywhere you look.
“Brook Green is a small patch, and has some of the best schools in the country,” said Paul. “And look at the regeneration in Hammersmith and Shepherds Bush. Askew Road is changing; and people said it never would!”
There is, he detects, a ripple effect outwards from Kensington & Chelsea – a market dominated by international money. Areas such as Queen’s Park, Clapham and Hammersmith & Fulham are feeling the effect of those inflationary ripples.
“In every market segment we see the same pattern,” said Paul. The price hike is even being felt in the £2m-£2.5m bracket, hit badly by rises in stamp duty but which seems to have emerged from that brief depressed state with new vigour.
“If you have a product that’s good at £2.5m and above, we have more interest than we’ve ever had,” he said.
New Land Registry stats show prices in London have risen 9.4 per cent in a year, while prices in the North East of England fell 5.5 per cent in the same period.
Another survey puts the capital’s home price rise in the past month at 1.3 per cent, while estimating the annual increase at 7.3 per cent.
For the average London homeowner, it translates as a rise in equity value of more than £2,100 per month. Doug Shephard, director of the home.co.uk website, commented: “With the combination of government-backed low mortgage rates and a flood of overseas investors, it would appear the sky is the limit.”
Details on all Finlay Brewer properties on 020 7371 4171 or at www.finlaybrewer.co.uk
Picture: Landscaped and packed with gadgetry, this Hammersmith Grove villa was recently sold for £5m by Finlay BrewerFor further details click here