2nd October 2017
Market Comment – September 2017
September was a month of mixed reports for the housing market both in London and nationwide. The Nationwide reported that house prices rose 2% from September 2016 to 2017, the weakest increase since 2013 but this was very regional with London house prices going up by 0.6% and the East Midlands values jumping 5.1% in the same period. The good news is that the areas in which we operate from Coulsdon to Crystal Palace still remain fantastic value for money, where demand still outweighs supply.
I read with interest about the largest drop in asking prices at nearly 10% across the borough of Kensington and Chelsea and whilst I sympathise with these house owners, I do not feel that this boroughs asking prices are reflective of the UK housing market. Some interesting statistics that I have looked at this month are the average price of a detached house in Croydon is £591,725 compared with Greater London at £857,440 and England and Wales at £331,446. Average rents across Great Britain rose by 1.6% in the 12 months to August, slightly down by 1.8% growth recorded in the year to July. Looking at other parts of our group the average price of a detached house in Purley is £719,821 and in Crystal Palace, SE19 is £740,793. Although there are some vast differences in the type of property we sell throughout our group, 17% of properties sole in the last 12 months in Coulsdon were apartments and conversely 71% of properties sold in Crystal Palace were apartments, (Purley 32%).
The governor of the bank of England Mark Carney, gave his clearest signal yet that the central banks Monetary Policy Committee would raise interest rates from 0.25%. He told BBC Radio 4s programme “What we have said, that is the economy continues on the track that it’s been on and all indications are that it is in the relatively near term we can expect that interest rates would increase somewhat.” The MPC committee next meets on the 2nd November to review interest rates.
With all of these reports I am mindful that sometimes eeking out the bad news makes headlines, however I read in this the positive in that there has been an increase year on year out and demand still out weighs supply.
There has been reports that the chancellor who collected 15.4 billion pounds worth of stamp duty in the tax year up to April 2017 may make some changes to the stamp duty tarrifs and I will keep you informed of any developments in this respect.
The rental market in the areas we operate also remained solid and steady with the average rent in Croydon now at £366.00 a week with 5/6 tenants for every property. Once again demand out stripping supply, which has resulted understandably, in landlords being very selective over a prospective tenant. I have no reason to believe that this steady lettings market will continue now for the rest of 2017 but I will report back to you in November.
Laslty, we were all thrilled at the launch of another Streets Ahead flagship branch and 25 High Street, South Norwood. This premises has traditionally been an Estate Agent over the year and we opened on schedule with a full sales and lettings team who are looking forward to meeting and assisting the South Norwood community with their home moving. As I mentioned in my August market comment, I think that South Norwood as a London postcode is under valued, somewhat undiscovered and has more than a few hidden gems including Norwood Lakes, Kilravoc House, Grange Woods and Spurgeon College.
I look forward to reporting back to you in November regarding how the last quarter 2017 is panning out.