Rise in house prices in Fulham in 2013

Rise in number of appraisals for our Fulham offices

Rise in exchanges for ourFulham offices

21%

39%

27%Average weekly rentalvalues for Fulham

Rise in number of lettings applicants for our Fulham offices

Rise in number of viewingsfor our Fulham lettings offices

£697

8.8%

16.3%

FIGURE 1: KEY MARKET INDICATORS

The only estate agent with 3 offices in Fulham alone.

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Your Team & Market Comment

FulhamRobert Sturges DirectorSales020 7384 4994 robert.sturges@chestertonhumberts.com

Fulham Munster RoadJosh Rault DirectorSales020 7471 2024 josh.rault@chestertonhumberts.com

Fulham New Kings RoadRichard Wallace Tarry Associate Director Lettings020 7348 7779 richard.wallacetarry@chestertonhumberts.com

Fulham New Kings RoadRichard Lepper Associate DirectorSales020 7348 7706 richard.lepper@chestertonhumberts.com

FulhamKatinka Hill DirectorLettings020 7384 9896 katinka.hill@chestertonhumberts.com

Robert Sturges & Katinka HillSales & Lettings

As has been widely reported in the press, both locally and nationally, the London Borough of Hammersmith & Fulham reported the greatest monthly house price growth of any borough in the UK, end of 2012 to September 2013. Usually the borough runs a poor third (or worse) to the neighbouring boroughs of Kensington & Chelsea and Westminster however increased prices brought about by lack of stock in those areas, and a perception that Hammersmith & Fulham as a borough still offers good value, or is even considered as “cheap”, has brought residents and investors from the east into the area to compete with existing residents and investors.

In the second half of 2013 available property remained “thin on the ground” in Fulham, and whilst these price rises clearly are favourable to existing property owners this, alone, has not tempted more than a few people to sell their prime asset, even with the increasing disparity between Fulham and the country - a well trodden path for outgoing Fulham residents. Therefore prices continued to rise locally, with no signs of anything likely to change this trend.

Where price growth does have a negative impact is yields for rental investors, and certainly the area is falling more in line with lower yields more commonly associated in prime Central London. However this is clearly balanced by future capital growth which, as suggested above, shows no sign of abating. Despite this Chesterton Humberts is locally currently transacting one third of their property sales to investors; whether professional investors or family investors pre-empting future market growth for children, who are often still teenagers (or younger). Fulham is a “good fit” for these investors as the area is well served by extensive amenities for either the young professional market or the family market with a great selection of shops, bars & restaurants, along with some decent nightclubs for the young, and parks, walks & playgrounds for the family all of which, of course, are why the sales market is so strongly subscribed.

Traditionally demand would initially focus on Parsons Green and would then filter out geographically due to the balance of budget and requirements. However, nowadays estate agents in the area regularly receive enquiries for certain parts of the area such as Munster Village, Sands End and of course Bishops Park in isolation. Some of this is no doubt budgetary; however it is also a reflection of the available stock, property style and balance of internal accommodation with outside space - with all of these areas being well served by infrastructure and amenities. Areas also targeted by Fulham buyers and tenants are southern Hammersmith (currently benefiting from the development by St George of the ironically named “Fulham Reach”) and Barons Court/West Kensington which, while less well served in amenity terms, is superbly connected in public transport terms. All of this has been identified not just by locals and incomers but by the national house builders who are now extremely active in the area: Imperial Wharf continues to expand northwards towards Fulham Broadway, as mentioned above Berkeley Homes are also building Fulham Reach in south Hammersmith which has a few years, and several phases, to run and some smaller schemes such as Hurlingham Gate on Sullivan Road. London Square have just launched a scheme of townhouses on Farm Lane loosely modelled on a Kensington style garden square. Fusion have just “broken ground” on their own scheme on Broomhouse Lane, to be jointly marketed in 2014 by Chesterton Humberts, and most significantly the CapCo (Capital & Counties) development of Earls Court, being one of Central London’s largest development schemes (of some 7500 residential properties), which starts building across the boundaries of Earls Court, West Kensington & Fulham in spring of 2014. With publically listed heavy weights such as these buying and developing in Fulham then perhaps the area is, indeed, “cheap” for such a well served, well connected prime central London location.

Research❖ Land Registry data shows that in the year to September house prices across London

increased by 9.3% to a new high of £393,462, meaning the average price of a London home is 135.5% higher than the national average.

❖ The latest sales volumes statistics (July) show that the number of sales above £1m in London increased by 44% in comparison with July 2012.

❖ The average monthly rent in London fell 4% in October to £1,283 according to the Homelet Rental Index, although on an annual basis rental values were up 2.6%. The average monthly rent across the UK dropped 4.6% in October to £815 per month, meaning it is 91% more expensive to rent in the capital.

❖ Mortgage lending data from the Council of Mortgage Lenders highlights the continuous growth of first time buyers in London, as 13,100 loans were advanced in Q3 last year representing a 32% uplift on the same period in 2012.

❖ In the third quarter of last year 10,900 loans were advanced to home movers in London which was an increase of 28% compared to Q2 2013, as well as a 6% improvement on the same period in 2012.

£400,000

£650,000

£800,000

£1,100,000

£1,700,000

ONE BEDROOM FLAT

TWO BEDROOM FLAT

TWO BEDROOM HOUSE

THREE BEDROOM HOUSE

FOUR BEDROOM HOUSE

Buying in Fulham

BUYING IN FULHAM: (AVERAGE PRICES)

SALES

• TheresidentialsalesmarketwithinFulhamenjoyedabumper year in 2013 as more and more buyers have realised the areas potential alongside neighbouring Kensington and Chelsea. Since the end of 2012 our sales index reveals that house prices in the area have moved up a considerable 21% to a value of £1,172,500, increasing at a much faster pace than Chelsea (3.9%) along with areas south of river such as Putney (10.9%) and Battersea (10.5%).

•BuoyedbythestrongupliftinpricesacrossFulhamour three local offices enjoyed a strong year in 2013, with exchanges and appraisals up year on year at our Munster Road, New Kings Road and Fulham Road locations. At our Munster Road office appraisals picked up considerably by 39% coupled with a 21% increase in exchanges in comparison with 2012.

•Meanwhile,atourNewKingsRoadofficeappraisalslast year were up a healthy 7% alongside a substantial 27% increase in the number of exchanges. Finally in Fulham Road we saw a 10% upward movement in the number of appraisals carried out, along with a 7.5% improvement in the number of exchanges last year.

FORTHCOMING DEVELOPMENTS

•FulhamReach:Dueforcompletioninautumn2015 the scheme will provide 744 units ranging from one to three bedrooms. Prices from £749,950

• FarmLane:40townhouseswithprivategardensand terraces along with underground parking to be developed, aimed at buyers moving out from Kensington and Chelsea

•HurlinghamWalk:53luxuryapartmentsrangingfrom one to three bedrooms overlooking Hurlingham Park. Available to purchase from spring 2014

•EarlsCourtredevelopment:Planshavebeenapproved for the redevelopment of the Earls Court Exhibition Centre. The development is expected to take 20 years to complete and will create four “villages” and 7,500 new homes

•HurlinghamTerrace:LocatedonSullivanRoadParsons Green Hurlingham Terrace will be a collection of seven luxury townhouses developed by Fusion.

LETTINGS

• ThePrimeLondonlettingsmarketremainsachallenging environment but in Fulham we have witnessed a considerable improvement in activity, though the number of agreed lets in 2013 reduced in comparison with 2012.

•LastyearourFulhamofficesnoticedan8.8%increasein the number of new applicants coupled with a 16.3% jump in the number of viewings carried out in 2013.

•Despitetheimprovementintenantactivitywitnessedtowards the end of last year the number of agreed lettings improved by just 0.5% last year. Throughout 2013 weekly rental values in Fulham fluctuated noticeably with a 6.9% uplift in Q2 offset by a 6.8% reduction the following quarter.

•Ourlatestfiguresshowtheaverageweeklyrentalvalue is just 0.7% below the level seen at the end of 2012 at £697p/w. With a number of new developments due for completion over the next two to three years Fulham house prices are likely to continue to rise in SW6. Meanwhile more buy-to-let landlords entering the market will mean the supply of rental property will more than keep up with demand in the rental market.

£350-£375p/wONE BEDROOM FLAT

Renting in Fulham

£400-£475p/wTWO BEDROOM FLAT

£450-£500p/wTWO BEDROOM HOUSE

£600-£750p/wTHREE BEDROOM HOUSE

£750-£1,000p/wFOUR BEDROOM HOUSE

£1,000-£1,800p/wFIVE BEDROOM HOUSE

Hilary Close, Fulham SW6£2,250,000

Fernhurst Road, Fulham SW6£1,795,000

SOLD

New Kings Road, Fulham SW6£1,825,000

SOLDSOLD

Chesilton Road, Parsons Green SW6£3,750,000

Favart Road, Parsons Green, SW6£2,350,000

Stephendale Road, Fulham SW6£650,000

Bronsart Road, Fulham SW6£1,150,000

Doria Road, Fulham SW6£2,000,000

St Olafs Road, Fulham SW6£695,000

Munster Road, Fulham SW6£895,000

Orbain Road, Fulham SW6£1,150,000

Rosebury Road, Fulham SW6£850,000

FOR SALE

FOR SALE

FOR SALE

FOR SALE

FOR SALE

FOR SALE

FOR SALE

FOR SALE

FOR SALE

Mimosa Street, Fulham SW6£1,250 per week

Rostrevor Road, Fulham SW6£1,650 per week

Radipole Road, Fulham SW6£2,400 per week

Foskett Road, Fulham SW6£1,250 per week

Seymour House, Fulham SW6£1,950 per week

Linver Road, Fulham SW6£1,195 per week

Hestercombe Avenue, Fulham SW6£1,500 per week

Chesilton Road, Fulham SW6£1,500 per week

Cambria Street, Fulham SW6£1,100 per week

Winchendon Road, Fulham SW6£1,400 per week

Marville Road, Fulham SW6£850 per week

Clonmel Road, Parsons Green, Fulham SW6£995 per week

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CONTACTChesterton Humberts Fulham Road654 Fulham Road, sw6 5rut: 020 7384 9898

Chesterton Humberts New Kings Road78 New Kings Road, sw6 4ltt: 020 7731 4448

Chesterton Humberts Munster Road191 Munster Road, sw6 6byt: 020 7471 2020

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