July 24 2014 Latest news:
by Tim Lamden
Thursday, February 27, 2014
The value of an average family house in Hampstead is rising by £310 a day, according to new figures.
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.
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.”