Months after Brexit, things were beginning to settle down and then a further surprise was sprung upon us when Donald Trump was elected President of the USA. Political uncertainty often slows the property market. However, the UK market is massive and does not have just one housing market to represent the country. Instead, it is a mixture of mini property markets that are all performing in a different way. For example, Kensington and Chelsea, which has seen average prices rise by just 0.83% in the last 12 months whereas London has seen an overall increase of 7.56%. The question is how is the Peckham property market performing?
OVER THE LAST 12 MONTHS PECKHAM’S PROPERTY PRICES ARE 7.81% HIGHER.
So if you are a homeowner or a landlord in Peckham, what does this mean? As Paul Daniels might have said, you may like this, but not a lot! In reality, this only affects you if you are going to sell or buy another property. The majority of sellers are buyers which means if you are buying in the same area all this growth is relative. But as with any market, if you look hard there are still good property bargains in Peckham.
Whilst everyone likes to focus on what is happening to property prices; it is also worth keeping an eye on what price bands are selling. For this, I’ve split the Peckham property market into four price bands that would seem logical for the area. Doing this helps you view which areas of the market are moving and which are stalling, and it can help you make the right offer depending on what price band you are looking for.
So what is on the market, and what has sold?
• 0 to £249k 11 properties for sale and 6 sold subject to contract (STC) for example 35.29% sold
• £250k to £499k 156 properties for sale and 127 sold (STC) for example 44.88% sold
• £500k to £1m 149 properties for sale and 87 sold (STC) i.e. 36.86% sold
• £1m + 28 properties for sale and 10 sold (STC) For example 26.32% sold
Because it’s Peckham there aren’t many properties under £250k and some of these can be difficult properties to sell or buy and may require cash purchases. For that reason, it would seem reasonable that this does not show the highest % of sold properties. The sweet spot remains the lower to middle end of the Peckham property market. This price band has been selling well all year. However, once you start moving up to the higher end bracket, £925k plus you have increased stamp duty especially if you are purchasing a second home. You can see that percentage sold tapers off quite quickly from this point onwards.
The next 12 months will be necessary within the property industry as further taxes also impact on landlord’s investment decisions. But despite the doom, and gloom the press like to pedal some key facts remain. People will always need a home to live in, and that is why the property market has ridden the storms of oil crisis’ in the 1970’s, the 1980’s Depression, Black Monday in the 1990’s, and latterly the credit crunch together with the various house price crashes of 1973, 1987 and 2008.
I think the sentiment should be positive! Why? Because of Britain’s lack of housing stock continuing to support house prices. Even if there is some respite from this in London as a result of the fallout of from Brexit, there are always silver linings to be seen and property bargains to be found.