Spring Brings Property Price Boost for Sellers
The price of property in Peckham and Woolwich increased by 0.9 per cent between March and February, sellers in the area will be pleased to hear.
What it means in real terms, according to the monthly House Price Index by online property portal Rightmove, is that the average house in Transport for London (TfL) Zone 4 is now worth around £486,501. That’s similar to the March 2017 figure – in other words, the value of houses in the area hasn’t increased over the past 12 months.
Homeowners in Peckham and Woolwich shouldn’t despair though. That’s because the news doesn’t quite sound so bad when you consider that the price of property has fallen in four other London regions over the last 12 months. Those properties that are worth less on average compared to last year are in TfL Zones two, three, five and six
In monthly terms though, March proved to be a bumper period all round with all six TfL zones reporting a monthly increase. All 11 UK regions, including Scotland and Wales also saw average house price rises.
Spring time has sprung property-wise
The monthly property price rises have been attributed to several factors. The first is buyers attempting to get a mortgage approval before the next interest rate hike (which many analysts will be before the summer). Another reason is the fact it’s spring and the traditionally busy buying period so sellers are expecting to see more buyers than usual, meaning more competition.
Its snow joke say house sellers
The third reason could bizarrely be because of the recent snow. It could have resulted in a delay in less properties coming to market, resulting in an especially low number of properties for sale and buyers pricing accordingly.
First time buyers face price hike
They may have been thrown a lifeline by government in terms of abolishing Stamp Duty on properties worth £300,000 or under, but first time buyers are facing rising costs in the value of two and one bedroom properties. The average property in this sector is valued at £189,840 (which is a 2.2 per cent jump on the same period last year).
Second steppers also having to spend more
And ‘second steppers’ (the term used for families looking to upsize to three or four bedroom detached homes) have a three per cent annual rise to contend with; the average house price in their sector now sitting at £272,031.
Sellers warned about ‘unaffordable’ prices
But Miles Shipside, Rightmove director and housing market analyst, was keen to reassure buyers that property prices were still up for negotiation.
“Sellers need to be mindful of increasingly stretched buyer affordability,” he said. “The more they increase prices the more buyers will hit their ceiling on the amount they are able to save for a deposit and borrow for a mortgage… sooner or later higher prices tend to mean fewer people can afford to move…”
If you’re in the market to buy or sell property, are looking for somewhere to rent or are a landlord and would like to know about our property maintenance services then do get in touch with our team, tel: 020 7277 6699 or email us via the Contact Us page on our website www.jtclarkelondon.com. Alternatively, pop in for a chat if you’re passing.