On Your Doorstep - Central London Edition

Page 1

ON YOUR

DOORSTEP

don n o L l a r t n Ce edition

Our network of 74 international offices has 4 in Central London alone – we are your local experts.

10.5%

22.3%

Average Central London house price rise in 2013

Rise in number of viewings for Hyde Park sales team in 2013

£1.4m

£941

Average house price in Notting Hill

Average weekly rental values in Notting Hill

45%

38.3%

Rise in lettings applicants for Westminster & Pimlico branch in 2013

Rise in exchanges in 2013 for our Hyde Park team

FIGURE 1: KEY MARKET INDICATORS

INSIDE THIS ISSUE… chestertonhumberts.com

Source: Chesterton Humberts Research

MEET THE TEAMS

MARKET COMMENTS

2 3

PROPERTIES

OUR NETWORK

6 8


Your Teams & Market Comments Covent Garden Christopher Saye

Hyde Park Alison Treneer

Associate Director Sales & Lettings 020 3040 8301 christopher.saye@chestertonhumberts.com

Director Sales 020 7298 5936 alison.treneer@chestertonhumberts.com

Hyde Park Rebecca Warren

Notting Hill Enna-Mae Assiter

Director Lettings 020 7298 5906 rebecca.warren@chestertonhumberts.com

Associate Director Sales 020 3040 8582 enna-mae.assiter@chestertonhumberts.com

Notting Hill Ed Woolgar

Westminster Robert Oatley

Director Lettings 020 3040 8343 ed.woolgar@chestertonhumberts.com

Associate Director Sales 020 3040 8208 robert.oatley@chestertonhumberts.com

Westminster Lawrence Brown Director Lettings 020 3040 8221 lawrence.brown@chestertonhumberts.com

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Robert Oatley & Lawrence Brown Westminster Sales & Lettings

Christopher Saye Covent Garden Sales & Lettings

The latter half of 2013 has seen prices carry on increasing within the sales market as listings continue to be at a premium. Demand never wanes in Pimlico and we have literally hundreds of buyers registered for each listing – it remains a good area to invest in due to the relative ‘good value’ compared to our immediate neighbours in other parts of SW1; though, until interest rates are increased or until changes happen to the wider economy, it seems unlikely more stock will come to the market. With job losses and cut backs in the public sector, the majority of letting searches in Westminster & Pimlico are now coming from mature renters who are being out priced of the sales market, this has seen our rental enquiries go up by 42% compared to the same time last year. Although it is fair to say there is a lot of choice on the rental market, we are also securing quality tenants.

The second half of 2013 saw the Covent Garden & West End market really step up a gear. Traditionally our busiest period, we took on a record number of instructions on the lettings side. This resulted in more move-ins during September than in the history of the office. On the sales side, demand was increasingly strong, but this was met by a huge shortage of properties coming to the market. The result was record prices being achieved, multiple bids on nearly every property but many purchasers left frustrated by the lack of opportunity to invest. As we moved into the winter months this showed no sign of changing, however the oversupply of properties in the lettings market required landlords in many cases to up their game. With such a choice of rental properties available is it imperative that landlords present their properties at their very best, and work with us to maximise appeal.

Alison Treneer & Rebecca Warren Hyde Park Sales & Lettings

Enna-Mae Assiter & Ed Woolgar Notting Hill Sales & Lettings

The second half of 2013 has been good for the Hyde Park area with prices rising and applicants willing to pay the right money for the right address. Recently a first floor flat to be refurbished in Hyde Park Gardens was sold for £2,000 per square foot and a period house, again in need of refurbishment, was selling at £3,450,000. The Hyde Park Estate has a wide variety of architecture and a modern town house with terrace achieved over £3,000,000 in September. In November with a lack of stock we even had a very close bidding situation on a 3 bedroom property in W1. Signs continue to be good for 2014.

The summer market of 2013 proved to be incredibly buoyant with a huge amount of competition per property on the market. The drive through to Christmas did not let up in terms of intensity with a clear deadline to work towards, as many buyers and tenants were looking to be in their new properties or wanted confirmation before the end of the year. Notting Hill continues to grow in popularity with its fantastic transport links, attractive architecture and excellent local amenities - making it a real hotspot for the international market. The shortage of available properties has not changed throughout the year, creating a huge imbalance of supply and demand which has driven prices up. A number of record sales and rental prices have been achieved on our marketed properties.

The last part of 2013 for lettings had a moderate increase on enquiries; pressuring landlords to compete for the best corporate tenants. With supply still out weighing demand, in some cases it has led to rentals being agreed upon at the same rates as 2010 prices. The key interest we have noticed is within newly refurbished properties, which have been very much sought after and so premiums can be achieved, particularly as the consumer here is generally looking for a 3 year term and quality and condition is paramount for prospective tenants.


Research ❖ Land

Registry data shows that in the year to September house prices across London increased by 9.3% to a new high of £393,462, meaning the average price of a London home is 135.5% higher than the national average.

❖ The

latest sales volumes statistics (July) show that the number of sales above £1m in London increased by 44% in comparison with July 2012.

❖ The

average monthly rent in London fell 4% in October to £1,283 according to the Homelet Rental Index, although on an annual basis rental values were up 2.6%. The average monthly rent across the UK dropped 4.6% in October to £815 per month, meaning it is 91% more expensive to rent in the capital.

❖ Mortgage

lending data from the Council of Mortgage Lenders highlights the continuous growth of first time buyers in London, as 13,100 loans were advanced in Q3 last year representing a 32% uplift on the same period in 2012.

❖ In

the third quarter of last year 10,900 loans were advanced to home movers in London which was an increase of 28% compared to Q2 2013, as well as a 6% improvement on the same period in 2012.

NOTTING HILL

7.2%

10.9%

HYDE PARK

7.4%

13.2%

COVENT GARDEN

WESTMINSTER

DIFFERENCE IN SALES PRICES FOR CENTRAL LONDON OFFICES: END 2012 VS END 2013. Source: Chesterton Humberts Residential Sales Index. Zoopla.


SALES • Across our Central London office locations of Covent Garden, Hyde Park, Notting Hill and Westminster the average house price moved up 10.5% in 2013, with particularly strong performances in Covent Garden and Hyde Park.

Rents in London are

• The latest figures from our residential sales index show that Covent Garden (13.2%) and Hyde Park (10.9%) both saw increases above the average for the Central London area from the end of 2012, although in Westminster (7.4%) and in Notting Hill (7.2%: Zoopla) prices moved up below the area average and more in line with the London average reported in various house price indexes.

greater than the average for the rest of the country

• This supports the recent trend that has appeared in the Land Registry’s House price Index that house price growth within Prime Central London is slowing down, as buyers become more reluctant to pay ever increasing prices in fear of the market plateauing. • The housing stock across Covent Garden, Hyde Park, Notting Hill and Westminster is varied and as a result considerable price differentials occur across the four locations. Hyde Park is the most expensive area with an average house price of £2,152,500; followed by Notting Hill where the average house price stands at £1,363,360. Meanwhile in Westminster the average house price is currently just over £1m (1,046,875). The popular tourist hotspot of Covent Garden represents the most affordable area with house prices averaging £893,235. • Exchanges in 2013 picked up in our three established markets with a small 2% increase in Westminster, a moderate 8% rise in Covent Garden and a substantial 45% lift in Hyde Park.

FORTHCOMING DEVELOPMENTS • Ebury Square: Developed by Berkeley Ebury Square will offer 1,2,3, and 4 bedroom apartments and 5 bedroom penthouses, pricing from £1,950,000 • Great Minster East: Planning permission for an office to residential conversion has been granted, with Barratt aiming to provide 60 new homes for open market sale.

LETTINGS • While the sales market remains buoyant across Prime London the lettings market endured a more testing time during 2013, though weekly rental values across our Central London offices increased as a whole in 2013 by 1.6% to £815p/w. • As the most expensive location to rent across our Central London network the average weekly rent in Hyde Park increased by 5.7% in 2013, supported by a 13.5% increase in the number of new applicants and a 22.3% rise in the number of viewings carried out. This culminated in the total number of agreed lettings going up by over a third (35.2%) in comparison with 2012. • In Notting Hill weekly rental values improved at a much slower rate than in Hyde Park but increased by 1.3% over the course of last year to £941p/w. However, Covent Garden and Westminster suffered slightly last year as rental values fell back in 2013 by 0.6% in Covent Garden to £653p/w and by 1.3% in Westminster to £648p/w. • In contrast to the sales market activity in the lettings market in Covent Garden endured a difficult time in 2013 as new applicants fell by over a quarter (-27.4%) from 2012, viewings were down by just over a fifth (-21.2%), and agreed lettings were down by 9.7%. • Within Westminster and Pimlico interest in the lettings market remained strong in 2013 as the number of new applicants received jumped up by over a third (38.3%) and viewings nudged up by just over 5%.


FOR SALE

Whitehall Court, Westminster SW1A £1,675,000 FOR SALE

St Stephens Gardens, Notting Hill W2 £1,250,000 FOR SALE

St Giles High Street, Covent Garden WC2 £799,950 SOLD

Lonsdale Road, Notting Hill W11 £3,350,000

FOR SALE

Bryanston Mansions, Hyde Park W1 £2,800,000 FOR SALE

Pembridge Square, Notting Hill W11 £1,340,000 FOR SALE

St Georges Square, Westminster SW1V £699,950 SOLD

Great Russell Street, Bloomsbury WC1 £3,500,000

FOR SALE

St Marks Road, Notting Hill W10 £1,195,000 FOR SALE

Clarendon Close, Hyde Park W2 Price On Application FOR SALE

Shrewsbury Road, Hyde Park W2 £499,950 SOLD

Alderney Street, Westminster SW1V £1,500,000


TO LET

The View, Westminster SW1E £4,250 per week TO LET

Cumberland Mansions, Hyde Park W1H £1,950 per week TO LET

Bloomsbury Square, Bloomsbury WC2H £450 per week LET

Wild Street, Covent Garden WC2B £995 per week

TO LET

Gillingham Street, Westminster SW1V £600 per week TO LET

The Lancasters, Hyde Park W2 £1,850 per week TO LET

St Giles High Street, Covent Garden WC2H £1,700 per week LET

Cara Court, Bloomsbury WC1N £850 per week

TO LET

St Georges Square, Westminster SW1V £550 per week TO LET

Beverston Mews, Hyde Park W1H £1,800 per week TO LET

Chepstow Road, Notting Hill W2 £425 per week LET

Hyde Park Gardens, Hyde Park W2 £1,600 per week


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