Land Registry figures just released reveal that the borough of Lambeth has seen the largest rise in prices this year, with an 11.4% increase in values year on year. They also reveal that in July alone, prices rose by 2.3% with the average property now costing in the region of £403,103.
This certainly echoes the activity which we have seen in the market which is largely dictated by the lack of stock available. We’ve seen huge levels of demand and are surprised at the budgets that new buyers to the area are coming with. The regeneration of the Nine Elms area and subsequent interest has been a huge driving factor and some maisonettes that were selling twelve months ago at £400,000 are now selling in the region of £500,000. Similarly flats in the Oval which again were priced at around £350,000 twelve months ago are now breaking the £400,000 mark and the appetite of buyers has not been quenched yet. Homeowners are seeing rapid price rises on a monthly basis and as a result, we’re finding that a number of potential sellers are holding out in anticipation of even higher increases.
The number of the new developments being sold overseas is not helping with the supply in the short term. Because of this shortage of stock, we’re finding that most of our properties attract a number of buyers, in turn forcing purchasers into bidding in excess of the asking prices. We are currently registering about 14 new buyers a week for every new instruction and the number of buyers waiting for stock is increasing every week.
The demand is strong across every property type from ex-council flats to large family houses. Owner occupiers wanting a home are competing with investors that feel the local market is still providing value for money as far as an investment is concerned. With the liquidity in the market and interest rates being linked to unemployment, at this stage it looks likely that the confidence will continue into the long term.
Click here to view the full Land Registry House Price Index Report for July 2013.