Barnes and East Sheen

Barnes and East Sheen
 
The Market In Context

16 February 2016, by Kirsty Bennison

Looking forward, Barnes and East Sheen will continue to appeal to a wide range of buyers

 

It is important to assess the outlook for Barnes and East Sheen in the context of the wider prime London market.

The sales market

The prime London market has seen price growth slow significantly and has experienced small falls in some high value locations. This is a result of higher transaction costs from successive increases in stamp duty rates. In addition, the increased mortgage regulation, testing the amount people can borrow against their earnings, is a constraint on the market.

However, against this new fiscal and regulatory backdrop, there is still a market for stock that is priced appropriately, particularly for best-in-class properties.

We expect price growth in prime London to remain broadly flat through 2016 and most of 2017 and after that a gradual return to trend rates of price growth over the medium term.

Looking forward, Barnes and East Sheen will remain desirable locations in prime London. The area is unique in its location, close to the river and vast parks, which will continue to appeal to a wide range of buyers whether local, from north of the river or international. In particular, families looking for more space and larger gardens alongside good schools will be drawn to the area.

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.

In particular, rental growth will be supported by the strong forecasted growth in the number of employees in the Professional, Scientific and Tech sector, which is already the dominant profession in Barnes and East Sheen.

Unlike other parts of London, where there is concern surrounding the high levels of new build stock coming to the market, there is not a significant pipeline in the area. As such, rents will not be put under pressure by large amounts of stock being brought to the market simultaneously.

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