Battersea, Clapham and Wandsworth

Battersea, Clapham and Wandsworth
 
The Market In Context

26 January 2016, by Sophie Chick

It is important to assess the outlook for Battersea, Clapham and Wandsworth in the context of the wider prime London market.

 

The sales market

The prime London market remains relatively price sensitive, particularly at the top end, reflecting an adjustment to a less hospitable tax regime and successive increases in stamp duty rates, the latest incarnation of which is a 3% stamp duty surcharge for 'Additional Homes'.

More domestic markets are also being constrained by increased mortgage regulation, which is limiting the amount people can borrow against their earnings.

We therefore expect prime London values to remain broadly flat through 2016 and most of 2017 but with a gradual return to positive rates of price growth over the medium term.

The Battersea, Clapham and Wandsworth area continues to offer good value in comparison to central London as well as offering high quality housing stock, an abundance of open space and good schools.

All these factors draw buyers from central London, a trend we expect to continue as expanding families look for more space without losing their quality of life.

The boundaries of the prime markets within the area are continuing their expansion, often led by development. The ongoing regeneration in Battersea and Nine Elms is changing the profile of housing to the north of the area along the waterfront and developments such The Ram Quarter are reviving parts of Wandsworth Town.

The rental market

Over the next five years the London economy is forecast to continue strengthening, which will underpin demand for prime rental property over the medium term as more people move to London for employment opportunities. We have already seen a significant increase in the demand for corporate rentals in Battersea, Clapham and Wandsworth over the past year. This is expected to continue meaning that the area is ideal for investment buyers.

Across the area, the number of private renters is already high and the area is well placed to attract more investment from investors. However, we do expect the recent changes to the buy to let tax relief and the stamp duty surcharge for 'Additional Homes' to impact the sentiment of the traditional landlord, particularly those dependent on mortgage finance. This does present an opportunity for institutional investors to make some bulk acquisitions.

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