So what do chicken shops have to do with the price of fish??
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The current average value of a property in Clapham currently stands at £851,200, so what will the recent increase in the base rates at 0.75% do to the local property market (especially property values)? In many of my articles, I talk about what is happening to property values over the short term (i.e. the last 12 months or the last 5 years), but to answer this question we need to go back over 40 years, to 1975.
The average value of a Clapham property in 1975 was £41,208
However, since 1975, we have experienced in the UK, inflation of 807.5%.
Back in 1975, the average salary was £2,291 and average car was £1,840. A loaf of bread was 16p, milk was 28p a pint and a 2lb bag of sugar was 30p. Inflation has increased prices, so comparing like for like, we need to change these prices into today’s money. In real spending power terms, an average value of a Clapham house in 1975, expressed in terms of today’s prices is £374,011.
That means in real terms, property costs a lot more today, th…
There is good news for Clapham buy to let landlords as ‘top of the range’ well-presented properties are getting really decent rents compared to a year ago however, this rise in rents is thwarting many potential first time buyers from saving for both a deposit and money for a rainy day. On top of this, there is also a shortage of Clapham homes coming on the market thus adding fuel to the slowdown and affecting not just Clapham first time buyers but also those going up the housing ladder.
Whilst it is true that the Government’s initiatives, targeted at improving the supply of homes built and helping first time buyers obtaining necessary funding, are starting to work (albeit slowly), I also believe that to boost more existing home-owners and their properties onto the market, we as a Country, need to see a better focus placed on those looking to downsize (i.e. the mature generation).
If we took away some hurdles to home owners downsizing, such as removing stamp duty for those downsizer…
The average asking price of property in Clapham dropped by 5% or £43,919 compared to a year ago, taking the current average asking price to £830,517 compared with £874,436 this time last year.
The overall drop in asking prices is being put down to sellers being more realistic with their pricing and looking to benefit from the impending mortgage interest rate rises later in 2018. This is great news for first, second and third time buyers in Clapham starting their property hunting in the usually active spring market this year facing the opportunity of paying less for the property of their dreams. Even better news is that whilst first time buyers also have to pay less for their property, they also have the bonus of the Chancellor stopping Stamp Duty being paid by first time buyers!
Looking at the different sectors of the Clapham property market, splitting it down into property types, one can see what is happening to each sector of the market with regard to their average asking prices …