The Wider Context

16 May 2016, by Gaby Day

Putney is expected to remain a popular area for families and young professionals

 

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

The sales market

The introduction of new stamp duty rates for high value properties, announced in the Autumn Statement of 2014, slowed house price growth in prime London and some high value locations saw small falls.

Further to this, the introduction of tighter mortgage regulation, limiting the amount people can borrow against their earnings in some cases, constrained the market.

Additional changes to stamp duty, announced in the 2015 Autumn Statement, for the purchase of ‘additional homes’ will act as a further constraint in markets with high amounts of investment and second homes.

Within the Putney area, the vast majority of buyers are purchasing their main residence, so this is expected to have far less of an impact. However, the increasing investment seen over the last year may be limited by the additional charges.

Looking forward, it is anticipated the changes in stamp duty and mortgage regulation will continue to constrain the prime London market over the next two years. However, over the medium term, we expect the return of positive price growth.

Putney is a very well established, sought after prime area within south west London and is expected to remain a popular area across a wide demographic.

The rental market

The forecast for the London economy is for continued growth over the next five years, which will underpin the demand for prime rental property as more people move to London for employment opportunities.

In Putney, there is a strong rental market that is supported by the high volume of young professionals living in the area.

The developments proposed for London over the next five years pose a potential threat if high volumes of new build stock come to the market simultaneously. However, levels of development in Putney are on a smaller scale than seen elsewhere in prime London, and as such, rental values should be protected by the strong rental demand currently seen in the area.

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