The Market In Context

28 April 2016, by Sophie Chick

The fundamentals of demand from families for large, high-value properties remains robust

 

It is important to consider the outlook for Fulham within the wider context of the prime London market.

The sales market

Price growth in prime London has slowed over the short-term. The increase in stamp duty for higher value properties, introduced in the 2014 Autumn Statement, and tighter mortgage regulation has constrained the prime market, resulting in price falls in high value locations. The upcoming EU referendum is also creating uncertainty in the market.

Similarly, supplementary stamp duty charges for the purchase of ‘additional homes’, announced in the 2015 Autumn Statement, are expected to further constrain markets with a reliance on investment purchases.

Fulham is an established high value location which has experienced slower growth over the short-term in line with London’s other high value prime markets. However, while buyers may take longer to commit, the fundamentals of demand from families for large, high-value properties remain robust. For some, this slower period might be seen as an attractive time to purchase when better value for money can be found.

Looking forward, it is anticipated that the prime London market will continue to be constrained by the changes to stamp duty charges and mortgage regulation. However, positive price growth is expected to return and we are forecasting growth of 20.4% across prime London over the next five years.

The rental market

The London economy is forecast to continue strengthening over the next five years, driving demand for rental property as people continue to move to London for employment opportunities.

In Fulham, there is already a strong rental market of high value, but there is a potential threat if large volumes of stock come to the market simultaneously. However, development in Fulham is on a smaller scale than seen elsewhere is London. As such, upcoming developments are likely to bring new types of property to the market, further strengthening Fulham’s prime rental market.

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