|Second Highest Price Ever Paid For Home In Acton|
Larger family houses still in demand as market for flats continues to stagnate
Recently released figures have shown that, while demand for newly built flats in the Acton area seems to still be completely absent, buyers are prepared to spend large amounts on family houses.
The second highest price ever has been paid for a family home in the W3 post code area with Acacia House changing hands for £3,400,000. The detached property right next to Acton Park was just £50,000 cheaper than the area’s highest priced sale on Twyford Avenue. The Acacia House sale took place in March of this year but was reported relatively late to the Land Registry.
There was also a sale of a detached house on Creswick Road for £2,400,000 meaning two of the top ten highest prices for Acton homes have been paid in recent months.
The picture for flats is very different with activity in the secondary market falling further from historically low levels and demand for newly built units evaporating. Only one brand new unit changed hands between April and June of this year according to the Land Registry.
The average price of a property sold in Acton during the second quarter was £608,101 which was up by 1.1% over the year. However, this figure is misleading because the price of all individual property types fell (terraced houses down 12.9% and flats down 8.9%). The average was driven up by the collapse in activity in flats which tend to be lower priced.
With only 57 sales reported in the Acton area so far in the second quarter market conditions look extremely tough for local agents and this period doesn’t include the World Cup and spell of hot weather which reports suggest have discourage people viewing homes in recent weeks.
The latest House Price Index data published by the Land Registry shows that London prices are the only ones that have fallen over the last year (to May) with the average now £478,853.
Figures for July from the Nationwide House Price Index show that the average price of a home in the UK rose by 2.5% to £217,010.
The was before the Bank of England’s Monetary Policy Committee (MPC) will increased rates at their next meeting at the beginning of the month from 0.5% to 0.75%.
There is not a high degree of concern that the rise in interest rates will have much impact on the property market. Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said, “Providing the economy does not weaken further, the impact of a further small rise in interest rates on UK households is likely to be modest.
“This is partly because only a relatively small proportion of borrowers will be directly impacted by the change. Most lending on personal loans and credit cards is fixed or tends to be unaffected by movements in the Bank Rate. Similarly, in recent years, the vast majority of new mortgages have been extended on fixed interest rates.”
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August 15, 2018