Putney, SW15 A local market review

Putney, SW15
A local market review
Putney snapshot
Location
Putney is located in the
south-west of Wandsworth.
It is served by good transport
links, with the shortest journey
to Waterloo being 18 minutes.
Its popularity as a riverside
residential location means it
has above average house prices
in comparison with London
overall and experienced strong
house price growth of 13%
over the last year.
House price growth over the last year
13%
Putney is a picturesque riverside location
in the London borough of Wandsworth.
It’s home to boutique shops, restaurants,
bars and is surrounded by vast green
spaces; in particular, Wandsworth Park is
on its doorstep and Richmond Park is just
two miles away. Nearby Putney Village
offers a tranquil location as it is surrounded
by Putney Heath. Putney is a sought after
residential area, popular with young
professionals and students. Boasting
great transport links, it is easy to get into
central London and only 18 miles from
Heathrow Airport.
Hyde Park
Westfield
South Acton
Hyde Park
Corner
Kensington Palace
Shepherd’s Bush
Knightsbridge
Hammersmith
Chiswick Park
Victoria
Gloucester Road
Earls Court
Turnham Green
Sloane Square
Hammersmith
Chiswick House
and Gardens
West Brompton
Fulham Park
Imperial Wharf
London Wetland centre
Battersea Park
Parsons Green
Barnes Bridge
Battersea Park
Putney Bridge
Hurlingham
Park
Mortlake
Putney
Wandsworth Town
Clapham
Common
East Putney
University of
Roehampton
Richmond Park
Wandsworth
Park
Clapham Junction
Wandsworth
Common
Putney Heath
Clapham
South
Southfields
Balham
Wimbledon Common
Earlsfield
London housing market overview
In the post-recession recovery period
London’s housing market has performed
strongly, outperforming the wider UK market
by a significant margin. Prices across the city
are now 43% above their previous peak.
Some of the strongest growth occurred in
2014 with annual growth peaking at 21%.
Towards the end of the year and moving into
2015 activity has slowed and growth started
to cool. However, this is something we
anticipated and we welcome an orderly
slowdown. Fears of a London house price
bubble have subsided and the market is
maintaining sustainable and robust growth,
with 9% inflation in 2015.
Moreover, activity in the new build market
remains extremely strong and demand is
high, with 67% of the 51,448 new build
homes under construction already sold.
This is the highest absorption rate of new
build stock in recent years.
Tileman House, Putney SW15
London’s new build market
70,000
80%
70%
60,000
60%
50,000
50%
40,000
40%
30,000
30%
20,000
20%
10,000
10%
0
Sold
Unsold
2015
2014
2013
2012
2011
2010
2009
2008
2007
0
2001–2006
average
Private units under construction
The government has recently announced
more favourable terms for the Help to Buy
scheme in London. To reflect the higher
prices, first time buyers in London will have
access to a 40% Help to Buy loan (compared
with 20% currently). This loan is interest
free for five years and offered on new build
properties up to £600,000. This incentive
is likely to stimulate the market by
encouraging first time buyers. This increase
in demand should have the roll-on effect of
further boosting the building market.
Proportion Sold (RHS)
The population of the London Borough
of Wandsworth currently stands at 322,780,
having increased by 28% from 252,860
in 2001. It is expected to grow by a further
6% to 342,375 by 2021.
Despite this marked increase in population
and the resulting demand for homes in
the area, only 5,114 new homes have
been built across the borough since
2010. This suggests an undersupply of
housing of nearly 1,500 homes, compared
with target levels. So, as is typical of
London, demand for homes hugely
outweighs supply.
Putney itself has approximately 60,000
residents, which makes up around 20%
of Wandsworth’s population.
Wandsworth enjoys high employment
of 78.5% in comparison with the London
average of 72.2%. In addition, earnings
in Wandsworth average at £40,820,
26% higher than the London average
of £32,297.
Tenure profile
It attracts a young and relatively affluent
demographic, with a high share of young
singles and students. 30% of the
population is aged between 25 and 34;
this compares with 14% for the UK as a
whole. As a result, there is a high demand
for privately rented property; the
proportion of renters has increased from
22% in 2001 to 32% now.
However, by London standards, rents
are fairly reasonable despite increasing
by 6% over the year, they stand at
£1,834pcm, lower than the £1,889pcm
across Wandsworth and £2,080pcm
across London.
Average rental values in Wandsworth
£1,834pcm
Property prices in the areas surrounding Putney
100%
90%
26%
20%
80%
Proportion of households
Local demographic and
economic trends
70%
22%
32%
52%
46%
2001
2011
60%
50%
40%
30%
20%
10%
Social rented
Private rented
Owner occupied
Putney price comparison
More specifically, the latest data shows
units in SW15 (Putney) sold for an average
of £715,366, broadly the same as the
borough average, but 26% higher than
the London average of £569,418. However,
Putney remains 24% more affordable than
the nearby area of Barnes and is significantly
cheaper than Fulham, where properties sell
in excess of £1million.
£800,000
£700,000
£600,000
£500,000
£400,000
£300,000
£200,000
Fulham
Barnes
Mortlake
£100,000
Wandsworth
Aesthetically, Putney offers the tranquillity
of riverside living together with beautiful
green spaces. A view of the countryside,
city skyline or river have been shown to
add substantial value to a property;
in fact, our research shows that a riverside
location can add around 10% to 20% uplift
on the price of a property. These visual
aspects together with its reasonable
commuter times into central London
and relative affordability, mean that Putney
offers something strongly sought after
and rarely found in London: lifestyle.
£900,000
Putney
According to Molior, the average new build
property price in Putney is just below
£1,000 psf. Comparatively, prices in
Fulham currently sit at £1,100psf, making
Putney a more affordable choice.
Focusing on flats, apartments in Putney
are achieving average prices of £536,728,
11% higher than the London average of
£483,840, but nearly 50% lower than in ever
popular Fulham. However, given its close
proximity to higher value areas such as
Fulham and Barnes, it is only a matter of
time before Putney’s prices rise to be in
line with its more affluent neighbours.
2015
2016
2017
2018
2019
5 year
growth
2015-19
UK
5%
3%
3%
4%
5%
22%
London
9%
5%
3%
5%
6%
31%
2012
2013
2014
2015
Average house price index
200
Average house price index (Base = Dec 2009)
Many people who start by renting in Putney
decide to settle in the area and buy a
home there. As a result, the local market
is buoyant, Wandsworth experienced growth
of 14% last year and Putney had growth
of 13%. However, this strong growth is a
relatively recent development, with prices
in Wandsworth prior to 2012 growing
broadly in line with the London average.
However, since then, growth has diverged,
with Wandsworth outperforming the
London average; Wandsworth has
experienced 43% growth since 2012,
compared with 36% for London.
Average apartment price
Local housing market trends
180
160
140
120
100
80
2009
Wandsworth
2010
2011
London
Base
Contacts
Jennet Siebrits
Head of Residential Research
+44 20 7182 2066
jennet.siebrits@cbre.com
Mark Collins
Chairman of Residential
+44 20 7182 2264
mark.collins2@cbre.com
Tom Bryant
Director Residential Development
Sales & Consultancy
+44 20 7182 2562
tom.bryant@cbre.com
Jack Hudson
Sales Negotiator Residential Development
Sales & Consultancy
+44 20 7182 2007
jack.hudson@cbre.com
Sources
CBRE, Molior, Rightmove, tfl.gov.uk (7/01/2016)
Disclaimer 2015 CBRE
CBRE Limited confirms that information contained herein, including projections, has been obtained from
sources believed to be reliable. While we do not doubt their accuracy, we have not verified them and make
no guarantee, warranty or representation about them. It is your responsibility to confirm independently their
accuracy and completeness. This information is presented exclusively for use by CBRE clients and
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permission of CBRE. Images provided are computer generated. © 2015 CBRE Ltd.