The data revealed that property prices in Balham outpaced the rest of London in 2014, leaping £152k comapred to the average £95k seen across the rest of the capital in the same period.
Property prices in the outer prime areas are 25% lower than the wider prime london average. The attractive prices seen in these 'suburban villages' have caused stronger demand for more affordable homes which has pushed up house price inflation.
In the outer prime areas of the capital house prices typically saw 9% growth - over twice the 4.3% increase gained in prime central areas.
A favourite amongst first time buyers and those who have children, Balham came out on top with regards to price growth last year. In second place, with an equally impressive 19% growth was Brook Green.
In contrast, the elite Prime Central areas of Kensington and Holland Park both saw 8% over the last year.
Peter Rollings, CEO of Marsh & Parsons, comments: “The prestigious prime property bastions of Kensington, Chelsea and Holland Park will always command worldwide appeal from buyers – however everyday demand for more affordable homes has catapulted Balham and other Outer Prime corners of the capital onto the map. Londoners are increasingly willing to compromise on a central location in return for more living space and manageable price tags, and as a result the price growth seen in green ‘village’ suburbs has overtaken the Goliaths of London property this year.”
However, the bulk of this growth happened in Q1 and Q2 last year. In the last three months, Prime London property values have actually dipped by 1.6% - the first quarterly price drop recorded for three and a half years.
A 26% boost in Prime London property supply during the final quarter of 2014 has helped to stabilise house price growth. Competition for available homes on the market has eased as the ratio of registered buyers per property dipped during Q4 from 12 in September to 11 in December.
Already in 2015 there are indications that activity has picked up, which will kick-start further price rises, albeit at a calmer pace than last year, with annual growth of 3-5% expected across the capital. As of January, there are 13 buyers to every available Prime London property, as demand intensifies in the New Year.
Peter Rollings concludes: “The end-game over the past year shows significant house price growth, but this hasn’t followed a simple straight line course. Property markets usually follow a cyclical pattern, and the first half of 2014 saw a strenuous uphill charge of house price growth, as buyers jostled elbow-to-elbow for the best properties. In the summer, values reached their pinnacle, and growth then plateaued. More recently, prices have backpedalled, but this slight hiatus is merely returning growth to more solid and stable ground. Buyers have been given some respite from heated trading conditions, and sellers are still achieving 96% of the asking price. After this breather, we expect growth to begin climbing again in 2015, and already there’s been a New Year boost of buyer demand to set the wheels of activity firmly in motion.
While we don’t expect values to fall any further, price growth is likely to remain stable for the opening months of the year. But after the general election, activity volumes will be turned up, once political uncertainty is put to bed.”
