|Acton Property Prices Pause for Breath|
Stamp duty changes and tighter lending rules calm local market
The latest figures suggest that Acton property prices have fallen back from the precipitous rises seen during the summer of last year.
Estate agents say demand for larger properties has eased and investment buyers are featuring more prominently.
Faisal Yousuf from citydeal estates says, '' Without a doubt the market has changed significantly over the last 6 months. Demand from buyers for larger properties, typically reserved for owner occupiers, has softened considerably and a number of sellers have withdrawn their homes for the short term.
''However, demand from buy to let investors and developers remains incredibly strong with offers exceeding asking prices for the right type properties. Our clients continue to bid for properties we appraise as being suitable for investment.''
The average price of a home in the W3 post code area during the last three months of 2014 was £494,168. This is down sharply from the level seen in the previous three months but still up by 7.4% compared to the same quarter in 2014.
The fall comes despite the period seeing the the record broken for the most expensive house sold in Acton with a home Cumberland Park changing hands for £2.7million.
Billy Rowe, director of Aston Rowe estate agents said, 'The market in 2014 was certainly a game of two halves, with buyer demand through the roof in the early part of the year and open houses the viewing method of choice, compared to a tricky second six months where lending restrictions tightened leading to a more stable market.
'We have seen a positive upsurge in demand locally in the early part of 2015 with new buyer registrations and viewing numbers up over 35% compared with the last quarter of 2014, and with Spring on the horizon, we expect healthy competition for local stock and generous levels of properties being offered for sale.'
Stamp duty changes appear to have affected top end of the market with fewer houses in the higher price bracket selling the Cumberland Park sale notwithstanding. The headline fall has been inflated by a change in the mix of properties sold - proportionally there have been more flats changing hands recently. Terrace house and flat prices are still up by around 20% over the year.
London continues to be the area of the country seeing the strongest price growth. During December the average price in the capital was £464,936 up another 1.8% compared to the previous month to bring the annual price rise to 16.8%
The December data shows a monthly price increase of 0.6 % bringing the annual price change to 7.0% and the average house price in England and Wales to £177,766.
The number of property transactions has increased over the last year. From July 2013 to October 2013 there was an average of 75,201 sales per month compared to 82,067 for the same period in 2014.
Simon Rubinsohn, RICS Chief Economist, said, 'Despite the slowdown, there is optimism that the stamp duty reforms will deliver a 2-5% boost in both sales and prices over the next 12 months, despite members in London expecting sales to decrease by between 5-10% and prices to decrease by 2-5%, with larger properties and/or those in prime areas expected to see the biggest price decreases.'
In a forthcoming edition of the ActonW3.com newsletter there will be a complete listing of recent property sales in the area.
February 19, 2015