Brixton Property Market Update Summer 2019
With record low interest rates at 0.75%, low unemployment rates of 3.8%, and decent mortgage availability, Brixton buyers have a lot going in their favour, aside from the perceived political uncertainty. Even those with low deposits – there were 224 mortgage deals available on the day of writing this article where only a 5% deposit was required and 5 main stream lenders that would offer 100% no deposit mortgages.
Interestingly, Rightmove have stated there are more properties for sale today in the Country, than at any time since 2016, and Brixton follows that trend. Even with that in mind, property values have remained reasonably stable as The Land Registry has just released its House Price Index for Brixton and the surrounding locality and it makes very interesting reading.
Overall, property values in the Brixton area are 4.5% lower
than a year ago as the average property value in Brixton now stands at £541,700.
Hmm, a slightly different picture appeared when I looked at the types of Brixton properties;
• Brixton Detached homes dropped by 3.9%
• Brixton Semi-detached homes dropped by 3.1%
• Brixton Terraced/Town-House dropped by 3.1%
• Brixton Flats/Apartments dropped by 4.9%
and splitting down the types of Brixton into property types ..
• Brixton Detached £687,000
• Brixton Semi-Detached £935,400
• Brixton Terraced/Town-House £759,200
• Brixton Flats/Apartments £220,300
You know I always like to measure the health of the Brixton property market not only by house prices but transaction levels as well 😉
942 properties were sold in the last year in Brixton,
lower than the 10-year average of 1,474 properties per annum
Considering the uncertainty the Country has been through in the last three years with the ‘B’ word issue, I don’t think that’s too bad and shows the underlying resilience of the Brixton property market.
Now looking forward towards the end of the year .. how will Brixton house values change under the new Prime Minister? ok, I am not going there…
Brixton buy-to-let landlords and Brixton first-time buyers seem to be sustaining their preceding activity levels, which is heartening news. It’s quite conceivable that both cohorts are presently profiting from the marginally increased numbers of Brixton homes on the market, which not only offers them greater choice, but aids with their negotiations. The suggested Stamp Duty changes made me look at previous Stamp Duty changes in the last decade and their effects have been rather short term.
That means those selling their homes in Brixton need to be realistic with their pricing, and, as most sellers also buy a property, what you might lose on your sale you will make up on the purchase.
It is buyers market, that means the sale shouldn’t be down, why is it then?
I think I have an answer!
Be specific, what type of buyer are you looking to attract? Do you know what each type is looking for? First time buyer is mostly not prepared to do works, they want to buy, get keys and move in. So, get the property ready to move in, make sure it is presentable, that it is done to buyers expectations. Get the price right, you can sale for more if you invested in the property, stop advertising properties for high price if is not worth it, get realistic! Either advertise for less so buyer can allocate the money to do refurb, or do it yourself, if property is done up nicely, it will be worth money.
BoJo, Brexit … I don’t like to talk about Brexit, many say that this is the reason why market is down, but to be honest are all short-term distractions from the long-term issues of the UK and Brixton property market. Until we start building at least 300,000 properties a year to meet the demand for UK property, demand will always outstrip supply, meaning irrespective of short-term fluctuations that may (or may not) be caused by domestic and world events (including the ‘B’ word’), prices will always in the medium to long term remain stable and increase.