New Record Levels for Wimbledon Property Values

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Prices of average terraced house and flat in SW19 reach all-time highs

Wimbledon property prices appear to be at record levels, with the price of an average terraced house and flat now at an all-time high.

In the first quarter of the year the average sale price in the SW19 post code area rose by 15.4% compared to the same three months in 2015 to £790,703.

The average peaked at over £800,000 in the third quarter of 2015 but the rise so far this year is more broad based with the price of the average terraced house now £838,854, an all-time high, and similarly the average flat is £467,147.

The most expensive property sold so far this year is a house in Ridgway Place which changed hands for £3,200,000. This would not rank as one of the top twenty most expensive sales in Wimbledon which shows that the rise in the average is not being driven by sales of a few exceptionally high priced properties.

One concern of local estate agents will be the fall in volumes. Sales of flats are half of what the were in the same period last year.

But Stuart Mills, Sales Manager at Jackson-Stops & Staff in Wimbledon Village, says this is probably due to the cost of moving and the recent stamp duty changes. He also warned that flats could be more vulnerable to price reductions.

However, the record prices in recent months reflect the "ongoing desirability of the Wimbledon area and all the great amenities and transport links that are on offer", he said.

"If you look at the wider market across London, these increases are not being seen elsewhere. The central London market in particular has had a very difficult time, stamp duty changes have been instrumental in this and then the additional 3% levy on any second property has really added to the burden.

"Currently the European referendum has taken some of the froth off the spring market, international buyers in particular like the British status quo, and this referendum shakes this somewhat. Buyers are waiting in the wings before making that commitment to buy.

"Wimbledon has the advantage of a varied housing stock, and one of the big drivers of sales and ultimately price increases are good schools. This I think is why we are seeing some of these price rises in the medium price bands. The many good schools in the Wimbledon area, attract young families and as more come to the area, catchment areas get smaller and the demand for houses in these catchment areas increases, driving up prices.

"The volume of sales has been dropping since about 2004. This is probably due to the cost of moving and more recent changes in stamp duty will make some people think twice before moving.

"The number of flat sales are highlighted in this report, the changes in tax for investors will have a big impact, and we may well see over the next 18 months some investors deciding to come out of the market altogether, this may result in more flats coming to the market, and it is possible that this part of the market may be most vulnerable to price reductions. The upside being that owner occupiers may not have to compete with investors for property.

"In truth this may prove to be the best time to buy, while others dither, the bold buy. Long term, property is a very good investment. Buying into an area that has an international reputation, a varied housing stock, good schools, excellent transport links and great amenities mean that you are doing the right thing," he explained.

The Land Registry’s March data for London shows a 13.9% rise across the capital over the last year to £534,785. This is higher than any other part of the country and makes London average twice the average for any other part of the country including the South East.

Annual growth of 6.7% in March brings the average house price in England and Wales to £189,901.

The latest survey by the Royal Institution of Chartered Surveyors (RICS) has revealed that growth in the private and public housing sectors in London slowed down considerably. Private housing workloads rose at their slowest pace since Q4 2012, with only 20% more of those working in the sector reporting a rise in activity rather than a fall over the first quarter of 2016. During the last quarter of 2015 that figure was 44 per cent.

This easing in the private housing sector has not been offset by any increase in the construction of public housing, with growth in this sector remaining broadly unchanged from the previous quarter, and just 11% more surveyors reporting a rise rather than a fall in activity.

RICS Chief Economist, Simon Rubinsohn said, “On the surface, it might seem surprising that we are witnessing a slowdown in the construction sector just a few months after hearing the Chancellor’s ‘We Are The Builders’ speech, given the Government’s significant commitment to this sector. One might well ask why growth in private housing workloads is softening at a time when policy is firmly focussed on the creation of new starter homes. We have long held the view that starter homes cannot be the only solution. There is an issue around the availability of land on which new houses can be built, and we would like to see more being done to free up private brownfield sites.

“Our survey tells us that planning delays are one of the biggest barriers to growth in the construction sector. We have recommended that councils work together to create a team of emergency planners who can parachute into boroughs that are experiencing significant delays, therefore reducing a major growth barrier.

“That said, we cannot discount the climate of uncertainty caused by the forthcoming EU referendum. We know that a range of sectors have been affected by these issues as investors look to delay.

The numbers below are subject to revision as is it usual that some properties are added late to the Land Registry's database.

WimbledonSW19.com is the only place that you will find detailed analysis of the Wimbledon property market.

Wimbledon SW19 Property Prices (January 2016-March 2016)
Area	Detached	Sales	Semi-det	Sales	Terrace	Sales	Flat/ mais	Sales	Overall ave	Total sales
SW19 1	0	0	1090000	1	746376	20	370632	11	627952	32
SW19 2	0	0	670000	1	433056	9	366875	8	416806	18
SW19 3	1185000	2	1273750	6	842703	17	463085	10	827694	35
SW19 4	2808333	3	1300250	1	1156583	3	613750	10	1137206	17
SW19 5	0	0	2125000	2	1338333	3	678500	7	1084542	12
SW19 6	0	0	0	0	1130318	4	378667	15	536909	19
SW19 7	0	0	1859730	7	1475000	1	865000	3	1553465	11
SW19 8	0	0	1190000	1	904561	18	391529	12	715176	31
Total	2159000	5	1534782	19	838854	75	467147	76	790703	175
Change in Quarter	-34.6%	-16.7%	12.2%	-42.4%	5.1%	-28.6%	1.8%	-57.5%	10.6%	-45.8%
Change in year	-5.1%	-16.7%	-8.8%	-34.5%	5.7%	-14.8%	16.0%	-55.3%	15.4%	-40.3%
Change in Three Years	-15.6%	-72.2%	43.2%	-36.7%	39.5%	-26.5%	52.3%	-50.3%	28.5%	-42.2%
Change in Five Years	28.3%	-58.3%	62.8%	-44.1%	56.8%	11.9%	54.0%	-37.2%	48.2%	-25.2%
Change in Ten Years	56.8%	-66.7%	159.0%	-61.2%	135.4%	-35.3%	99.4%	-74.8%	135.4%	-63.6%

Source: Land Registry

May 25, 2016