Search

Price of Hampstead family homes rising by ‘£310-a-day’

13:00 27 February 2014

A four-bedroom house in Vale of Health, Hampstead, currently on the market for just under £2.5m.

A four-bedroom house in Vale of Health, Hampstead, currently on the market for just under £2.5m.

Archant

The value of an average family house in Hampstead is rising by £310 a day, according to new figures.

A four-bedroom house in Spencer Walk, Hampstead, currently on the market for £2.5m.A four-bedroom house in Spencer Walk, Hampstead, currently on the market for £2.5m.

A new report conducted by estate agents Savills has forecast a 22.7 per cent rise in Hampstead property prices over the next five years to 2018.

This will mean a four-bedroom house in the area, which currently has an average price tag of £2.5million, will rise in value by £567,500 over five years.

Frank Townsend, residential director for Savills Hampstead, said: “I think you’ll find that there are going to be certain areas of the market that show higher growth than other areas.

“The area in which we will continue to see high demand is what we call our ‘core market’, our average market.

Hampstead house prices

22.7 per cent rise in house prices predicted by 2018

£310-a-day price tag increase for four-bed houses worth an average of £2.5m

58 per cent of £2million-plus homes purchased by foreign buyers

21 per cent of homes bought for investment purposes and redevelopment

“Homes valued at £750,000 to £2.5million is the core market in Hampstead. That covers everything from two-bed apartments to four-bed houses.”

The new report also finds that 58 per cent of Hampstead homes sold for £2million-plus are bought by foreign purchasers. However, Mr Townsend insists Hampstead’s core market is mainly domestic.

He points to mansion properties – such as two in Winnington Road, Hampstead Garden Suburb, both sold by Savills for around £21million each last year – as the preserve of super-rich international buyers.

This seems to be supported by other figures in the report which show that 68 per cent of Hampstead properties worth between £1m and £2m are sold to UK residents.

The report also shows that 45 per cent of people buying in Hampstead are moving in order to upsize, while only 21 per cent are buying Hampstead homes for investment purposes and for redevelopment.

Again, these figures are supported in the report by further statistics that show 71 per cent of homes bought in Hampstead are used as the buyer’s main residence.

Hampstead resident Janine Griffis, who spearheaded the formation of Hampstead Neighbourhood Forum, said: “We all know that Hampstead is changing rapidly and people are very concerned about keeping the diversity in Hampstead.

“Hampstead has always had a huge mix of residents so one of the concerns for the forum will be how to retain that kind of mix – looking at the mix of housing and looking at whether there is any opportunity for low-income housing.

“Housing has become so expensive in Hampstead it puts pressure on transferring useful shops and offices into residences, as we have seen with the Old White Bear pub.”

Mr Townsend thinks the predicted rise in Hampstead house prices will not be felt as ferociously as it appears.

“In real terms [the rise] is moderately modest, he added. “You’re talking about 4 per cent annually, so in real terms that’s quite a credible number, not getting anywhere near double digit growth, so it may be sustainable.

“The lack of readily-available affordable homes in a place like London is part and parcel of the problem.”

0 comments

Latest News Stories

Yesterday, 17:10
The low rate of burglaries now solved was described as 'very worrying' by the Camden SNB

Burglars breaking into residents’ homes are now getting away with more than 95 per cent of their crimes, figures covering Camden have shown.

Yesterday, 09:48
Chief Supt Richard Tucker, acting Borough Commander of Camden, said the plummit in solved burglaries was down to a change in procedures

Camden’s top police officer has questioned the role his force now plays in dealing with mentally ill residents, warning some of his officers’ actions are having “catastrophic consequences” for vulnerable people.

Yesterday, 07:00
Sarah Cope with children Clementine and Walter, bottom left, and Patrick and Harry Mildren, centre, protest against the estate being earmarked for redevelopment. Picture: Nigel Sutton

Young families and elderly residents who have lived in a housing estate for generations fear their homes could be demolished within a decade under draft redevelopment plans by the council.

Sunday, May 31, 2015
The altercation took place outside this pub in north-west London [Image from Google StreetView]

A 72-year-old man is in hospital with life-threatening head injuries after a fight outside a pub on Swiss Cottage’s Finchley Road on Friday night.

Most read news

Property Newsletter Sign-up

The latest North London property news and features straight into your inbox.

Other Emails:
Fields marked with a * are mandatory
Email Marketing by e-shot

Competitions

Time to expand with the LeefiBRIDGE.

More iOS memory in a flash: Introducing Leef iBRIDGE.

The sell out 2014 event 32 Londoners, returns to the Coca-Cola London Eye!

The Coca-Cola London Eye is proud to announce that 32 Londoners will be returning this June, following last year’s sell out event. The event will feature 32 talks, in each of the London Eye’s 32 capsules on 32 extraordinary Londoners.

Digital Edition

Image
Read the Hampstead & Highgate Express e-edition today E-edition
Family Notices 24


Our trusted business finder