Putney, SW15A local market review
House price growth over the last year
13%
Putney snapshot Putney is located in the south-west of Wandsworth. It is served by good transport links, with the shortest journey to Waterloo being 18 minutes. Its popularity as a riverside residential location means it has above average house prices in comparison with London overall and experienced strong house price growth of 13% over the last year.
Chiswick House and Gardens
London Wetland centre
Barnes Bridge
Mortlake
Putney
Putney Bridge
Westfield
Kensington PalaceShepherd’s Bush
Hyde Park
Richmond ParkPutney Heath
University of Roehampton
Wimbledon Common
Wandsworth Town
East Putney
Southfields
Earlsfield
Balham
Wandsworth Common
Wandsworth Park
Hurlingham Park
Clapham Common
Clapham South
Clapham Junction
Battersea Park
Battersea Park
Location
Putney is a picturesque riverside location in the London borough of Wandsworth. It’s home to boutique shops, restaurants, bars and is surrounded by vast green spaces; in particular, Wandsworth Park is on its doorstep and Richmond Park is just two miles away. Nearby Putney Village offers a tranquil location as it is surrounded by Putney Heath. Putney is a sought after residential area, popular with young professionals and students. Boasting great transport links, it is easy to get into central London and only 18 miles from Heathrow Airport.
Imperial Wharf
Parsons Green
Fulham Park
West Brompton
Chiswick Park
South Acton
Turnham GreenHammersmith
Hammersmith
Earls CourtGloucester Road
Knightsbridge
Hyde Park Corner
Sloane Square
Victoria
London housing market overview
In the post-recession recovery period London’s housing market has performed strongly, outperforming the wider UK market by a significant margin. Prices across the city are now 43% above their previous peak. Some of the strongest growth occurred in 2014 with annual growth peaking at 21%. Towards the end of the year and moving into 2015 activity has slowed and growth started to cool. However, this is something we anticipated and we welcome an orderly slowdown. Fears of a London house price bubble have subsided and the market is maintaining sustainable and robust growth, with 9% inflation in 2015.
Moreover, activity in the new build market remains extremely strong and demand is high, with 67% of the 51,448 new build homes under construction already sold. This is the highest absorption rate of new build stock in recent years.
The government has recently announced more favourable terms for the Help to Buy scheme in London. To reflect the higher prices, first time buyers in London will have access to a 40% Help to Buy loan (compared with 20% currently). This loan is interest free for five years and offered on new build properties up to £600,000. This incentive is likely to stimulate the market by encouraging first time buyers. This increase in demand should have the roll-on effect of further boosting the building market.
London’s new build market
80%70,000
60,000
50,000
40,000
30,000
20,000
2001
–200
6 av
erag
e
2007
2008
2009
2010
2011
2012
2013
2014
2015
10,000
0
70%
60%
50%
40%
30%
20%
10%
0
Sold Unsold Proportion Sold (RHS)
Priv
ate
units
und
er c
onst
ruct
ion
Tileman House, Putney SW15
Average rental values in Wandsworth
£1,834pcm
Local demographic and economic trends
The population of the London Borough of Wandsworth currently stands at 322,780, having increased by 28% from 252,860 in 2001. It is expected to grow by a further 6% to 342,375 by 2021.
Despite this marked increase in population and the resulting demand for homes in the area, only 5,114 new homes have been built across the borough since 2010. This suggests an undersupply of housing of nearly 1,500 homes, compared with target levels. So, as is typical of London, demand for homes hugely outweighs supply.
Putney itself has approximately 60,000 residents, which makes up around 20% of Wandsworth’s population.
Wandsworth enjoys high employment of 78.5% in comparison with the London average of 72.2%. In addition, earnings in Wandsworth average at £40,820, 26% higher than the London average of £32,297.
Tenure profile
2001 2011
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
Pro
port
ion
of h
ouse
hold
s
Social rented
Private rented
Owner occupied
32%
20%
46%
26%
52%
22%
Property prices in the areas surrounding Putney
It attracts a young and relatively affluent demographic, with a high share of young singles and students. 30% of the population is aged between 25 and 34; this compares with 14% for the UK as a whole. As a result, there is a high demand for privately rented property; the proportion of renters has increased from 22% in 2001 to 32% now.
However, by London standards, rents are fairly reasonable despite increasing by 6% over the year, they stand at £1,834pcm, lower than the £1,889pcm across Wandsworth and £2,080pcm across London.
Local housing market trends
Many people who start by renting in Putney decide to settle in the area and buy a home there. As a result, the local market is buoyant, Wandsworth experienced growth of 14% last year and Putney had growth of 13%. However, this strong growth is a relatively recent development, with prices in Wandsworth prior to 2012 growing broadly in line with the London average. However, since then, growth has diverged, with Wandsworth outperforming the London average; Wandsworth has experienced 43% growth since 2012, compared with 36% for London.
According to Molior, the average new build property price in Putney is just below £1,000 psf. Comparatively, prices in Fulham currently sit at £1,100psf, making Putney a more affordable choice.
More specifically, the latest data shows units in SW15 (Putney) sold for an average of £715,366, broadly the same as the borough average, but 26% higher than the London average of £569,418. However, Putney remains 24% more affordable than the nearby area of Barnes and is significantly cheaper than Fulham, where properties sell in excess of £1million.
Focusing on flats, apartments in Putney are achieving average prices of £536,728, 11% higher than the London average of £483,840, but nearly 50% lower than in ever popular Fulham. However, given its close proximity to higher value areas such as Fulham and Barnes, it is only a matter of time before Putney’s prices rise to be in line with its more affluent neighbours.
Aesthetically, Putney offers the tranquillity of riverside living together with beautiful green spaces. A view of the countryside, city skyline or river have been shown to add substantial value to a property; in fact, our research shows that a riverside location can add around 10% to 20% uplift on the price of a property. These visual aspects together with its reasonable commuter times into central London and relative affordability, mean that Putney offers something strongly sought after and rarely found in London: lifestyle.
Average house price index
Putney price comparison
2015 2016 2017 2018 20195 year
growth 2015-19
UK 5% 3% 3% 4% 5% 22%
London 9% 5% 3% 5% 6% 31%
2009 2010 2011 2012 2013 2014 2015
200
180
160
140
120
100
80
London Base
Ave
rage
hou
se p
rice
inde
x (B
ase
= D
ec 2
009)
Wandsworth
£800,000
£900,000
£700,000
£600,000
£500,000
£400,000
£300,000
£200,000
£100,000
Ave
rage
apa
rtm
ent p
rice
Put
ney
Wan
dsw
orth
Mor
tlake
Bar
nes
Fulh
am
Jennet Siebrits Head of Residential Research +44 20 7182 2066 [email protected]
Tom Bryant Director Residential Development Sales & Consultancy +44 20 7182 2562 [email protected]
Mark Collins Chairman of Residential +44 20 7182 2264 [email protected]
Jack Hudson Sales Negotiator Residential Development Sales & Consultancy +44 20 7182 2007 [email protected]
CBRE Limited confirms that information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt their accuracy, we have not verified them and make no guarantee, warranty or representation about them. It is your responsibility to confirm independently their accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE. Images provided are computer generated. © 2015 CBRE Ltd.
CBRE, Molior, Rightmove, tfl.gov.uk (7/01/2016)
Disclaimer 2015 CBRE
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