Wimbledon Residential Market Insight Q4 2011 - Jackson-Stops & Staff - Estate agents

National Housing Market Performance

Latest figures from Land Registry show that house prices nationally have fallen in the year to November 2011 but only by a relatively modest 1.9%.

Data source: Land Registry

Negative price movement can be attributed to minimal economic growth, coupled with the general level of economic uncertainty both domestically and internationally, with particular focus on the Euro crisis. The national statistics mask positive price movements in a number of areas in the regions where local demand increased during 2011 against relatively low levels of properties coming to the market. Figures from the 40 Jackson-Stops & Staff offices around the country show that prices and the volume of property sold increased in 2011 within the markets we operate in.

London Market Performance

London continues to operate under different market conditions enabling it to be the only region in England and Wales to witness house price increases.

The three main price indices tracking price changes over the country have all reported that average prices in London have risen this year. The average price of property in the prime areas of London is now above the peak in 2007/08. The average house price in The Royal Borough of Kensington and Chelsea is currently 12.3% higher than its highest price in 2008, before the downturn.

London’s short supply, abundance of equity rich (cash purchasers), overseas demand and regard as an international location have been leading factors driving price growth.

Local Market Performance

The borough of Merton nurtures London’s market characteristics and being a prime region amplifies the positive effect evidenced through over a 1% annual price increase.

Price Trends in SW19

Market Demand in SW19

Graph source: Hometrack

The borough has seen prices remain at historically high levels which have been rising slowly over the course of the year. Quarter four reports a slight slowdown in price growth but it remains positive. The number of people looking to buy and the number of houses for sale has risen, however there is still an underlying shortage of stock relative to the demand.

Outlook for 2012

The general consensus from market commentators and our own research indicates that the housing market in 2012 will follow the pattern seen in 2011 where London will continue to outperform the country market. That said, a number of our country offices have seen good demand for the nature of properties we sell in recent months and there remains a distinct shortage of good family homes in many areas, particularly those within commuting distance of the Capital. The absence of mortgage finance has had limited effect on the majority of our purchasers and while the general volume of sales will be restricted by the economic uncertainty, we anticipate that the Queen’s Diamond Jubilee and the Olympics will lift sentiment and add to residential property in the prime areas being viewed as a ‘safe haven’ by many, especially overseas purchasers.

Contact the Jackson-Stops & Staff Wimbledon office for any advice on your property 020 8879 0099