How much more expensive is it to live in a London ‘village’?
Research from Kinleigh Folkard & Hayward and Zoopla suggests that there is a massive premium on properties in or near to a ‘village’ in London. Looking at 24 village areas across London, the data shows that on average there is a £200,000 premium – so that while they estimate the average value of a property in London at £456,802, a home in a ‘village’ is just over £690,000.
Admitting that it’s hard to pin down an exact definition of a village, KFH says their typical attributes are green spaces, independent shops, weekend farmers markets and thriving high streets, plus good schools, which together form close-knit communities.
The figures indicate that Hampstead is the most expensive village (average property value £1.5 million), while Charlton is the cheapest (average a smidgeon under £300,000). Overall, the average premium for living in a village appears to be 51%.
Average prices in the ‘prime’ country house market increased by 0.8% between July and September the strongest rate of growth since 2010, according to a report from Knight Frank, following on from rises in the previous six months. It means prices are now 0.4% higher than they were a year ago, a growth largely due to improving sales of homes worth up to £2m.
“However, this average figure hides significant regional variations,” says Knight Frank’s Oliver Knight, “with the strongest price rises concentrated in locations within easy commuting distance of London. The South East saw the strongest growth with prices rising 1.5% on the back of increasing confidence in the regional economy.”
Prices in the North and Scotland prices were unchanged and in general prime country house prices are roughly 20% lower than the peak of autumn 2007. This is in sharp contrast to the prime central London market, where prices have risen by around 23% since their previous market peak (see image below). recent price growth has been driven by homes worth up to £2m.
Looking further afield, Savills latest report on what it describes as “the world’s luxury residential enclaves…exclusive hot spots where ultra-high-net-worth individuals are buying additional homes around the world” puts the Cote d’Azur (typical five bed $28 million) head of the list followed by the Costa Smeralda in Italy, St Barts, Aspen, and Monaco in fifth place.
Housing supply growing
There was an increase of nearly 10% percent last month in the supply of houses coming on to the market, according to the National Association of Estate Agents (NAEA), up from an average of 52 in August to 57 in September. It ends four consecutive months of decline.
NAEA members also reported a drop in the number of house hunters registering with agents, dropping from 322 in August to 314 in September, although the average number of sales agreed was the same in September as August at an average of nine per branch. One in four of all properties sold by NAEA members went to first time buyers.
“It will still be some months before we can assess fully the impact of the Help to Buy mortgage guarantee scheme,” said Jan Hӱtch, President of the National Association of Estate Agents. “Over the past few months we have noticed a drop in the supply of properties with the view that buyers were holding out until the Help to Buy mortgage guarantee scheme went live in the new year. However, with the scheme now available earlier than anticipated, sellers looking to take advantage of the predicted increase in demand are now beginning to release their properties into the market.
Pictured is a 7 bedroom property for sale, Cluny Estate, Laggan, Newtonmore, Inverness-Shire. Offers over £7,500,000. On with Savills.Tagged in: first-time buyers, london, prime, village
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