Property continues to represent a sound long term investment

The latest Christies House Price Index, using the most up to date reliable data from the Land Registry, confirms that property in the local area continues to represent an outstanding investment.

Medium and long term gains are exceptional. Based on past performance anyone looking to buy a property in the coming months will be very encouraged to see that prices have risen by 42% over the previous ten years and by an astonishing 179% over the previous 15 years.

What is perhaps even more impressive is that in spite of the down turn in the property market since 2007/2008 prices are still within 2% of the level reached 5 years ago.

The comparison is based on the average price of all local properties sold including flats, maisonettes, all types of houses and bungalows. Figures for June & July are not yet available - the Index will be revised as soon as the data is released so please check this page regularly for any updates.

Date............Average Price.........Average Price May 2012.......YEARS............INCREASE

May-97..............£88,562..........................£247,512...........................15.....................179%

May-02............£173,446..........................£247,512...........................10......................42%

May-07............£252,907..........................£247,512............................5.......................-2%

Over the years, and particularly in recent times, demand for properties in Cheam and the nearby areas, such as Sutton, Ewell, Epsom, Banstead and Kingswood, has increased dramatically. Much of this demand is due to the location of the properties we sell, which are ideally situated on the fringes of London, bordering rural Surrey greenbelt countryside with picture postcard villages and market towns full of rich heritage and character.

Buyers flood into the area to take advantage of a wide range of leisure and shopping amenities. The local schools are nationally renowned and attract large numbers of enquiries, ensuring that property sale levels and prices have remained well above quoted national averages.

Cheam Village has a flourishing local community with many popular cafés, restaurants and varied independent shops and businesses; this, coupled with many high street names, creates an enviable mix of retail and food outlets. Combined with excellent road and rail links, demand for property remains constant and represents an exceptional investment.

Christies have an unparalleled understanding of the area and are dedicated to ensuring customers are always informed – not just on the property market and prices ,but also the area and amenities. When looking at buying a new home, we believe it is imperative that our purchasers are fully informed about all aspects of the potential move.

Your estate agent should be able to answer any of your questions regarding this. We are proud to represent this area and convey that passion to anyone looking to move here.

Please contact either Andrew Richardson, Jeremy Richardson or Richard Killoughery on 020 8643 7777 to get moving or email us at sales@christiesworld.com.

Greed Works

Nick Churton of our London Mayfair Office takes a look at what makes the property market go round.

When Michael Douglas as Gordon Gecko in the 1980s film, Wall Street, said, "Greed is good" it seemed a rather shocking statement.

Well, greed is rather good in property. Greed works. Greed – or to put it more gently, ambition - fires the market. It is people’s ambition, however humble or grand, that makes them seek new homes for themselves, their families, their jobs, their asset bases, their pets, their toys, their lifestyles or their statuses. It was ever thus.

But ambition also maintains the status quo. The ambition of a purchaser to buy a property for as little as possible keeps in check the ambition for a seller to achieve as much as possible. In this respect greed works because it forces realism into the market and provides a platform for deals that are acceptable to all sides - albeit sometimes grudgingly. In a way the friction of conflicting greed provides the heat that ultimately forges market value.

The trouble comes when one side is more ambitious than the other – a little too greedy than is good. Greed tempered by reason is one thing. Blind greed is quite another. An unrealistic offer is as useless as an exorbitant asking price. Both get nowhere.

This is a time of greatly conflicting property market reports. Some commentators say that prices are still going down – great for buyers - while some say prices are creeping up – great for sellers. All, somehow, blame the current economic conditions. But they miss the real point.

Despite the Greek, Spanish and Italian fiscal precipice, the Euro Zone conjecture, the lack of discernible growth in the UK, the ambiguous US economy, the Arab Spring, the booming London luxury property market, global trade protectionism, the drought, the wet weather, the Olympics or the Duchess of Cambridge’s wellies, if a purchaser makes a reasonable offer, and a reasonable seller accepts it, both will achieve their ambitions – even in this market and despite what else is going on in the world. That is the point.

On the face of it an estate agent’s job is to sell property. In reality it is to manage the expectations and ambitions of buyers and sellers - reasonable or otherwise - to achieve agreeable results for both sides. After all without that no one is going anywhere - however ambitious he or she is!

Please contact either Andrew Richardson, Jeremy Richardson or Richard Killoughery on 020 8643 7777 to get moving or email us at sales@christiesworld.com.

Beware of Greeks Bearing Debts

The media is full of economic woe but Nick Churton of our Mayfair Group Network’s London Head Office finds that the UK property market is anything but downbeat.

The Euro zone is in crisis. We really are in a quandary over austerity versus growth. The French disagree with the Germans and the British disagree with everybody. What is one to think or do?

In central London there is little doubt over what many mainland Europeans are doing – including wealthier Greeks. They are piling into residential property in our capital. Whilst we are not exactly cocking a snook at our Euro-cousins, we do at least have a property market that seems to provide an attractive haven for money in these difficult times.

Our local experience, while not quite reflecting the market in central London, is of increasing activity since the second half of last year. Property is trading, and for the right property at the right price it is trading well. This is contrary to media commentary and speculation.

Within the residential property sector there is the growing realisation that nothing will ever be quite the same. Perhaps we are at a moment in history, like the industrial revolution, when everything changes forever through this financial revolution.

And we are not out of the woods by a long chalk. The Euro zone problems, Greek and Spanish debt and the further pressure these may bring to our own banks - already coy about lending money - will create further challenges. But overall there seem two very good places to be at the moment. One is in Britain and the other is in property.

Please contact either Andrew Richardson, Jeremy Richardson or Richard Killoughery on 020 8643 7777 to get moving or email us at sales@christiesworld.com.

House Prices Remain 'Rock Solid'

The latest Christies House Price Index, using the most up to date reliable data from the Land Registry, confirms that property in the local area continues to represent an outstanding investment.

Medium and long term gains are exceptional. Based on past performance anyone looking to buy a property in the coming months will be very encouraged to see that prices have risen by 46% over the previous ten years and by an astonishing 187% over the previous 15 years.

What is perhaps even more impressive is that in spite of the down turn in the property market since 2007/2008 prices are still 1% higher than they were 5 years ago.

The comparison is based on the average price of all local properties sold including flats, maisonettes, all types of houses and bungalows. Figures for April & May are not yet available - the Index will be revised as soon as the data is released so please check this page regularly for any updates.

Date............Average Price.........Average Price Mar 2012.......YEARS............INCREASE

Mar-97..............£86,292..........................£247,512...........................15.....................187%

Mar-02............£169,129..........................£247,512...........................10.......................46%

Mar-07............£246,216..........................£247,512............................5.........................1%

Over the years, and particularly in recent times, demand for properties in Cheam and the nearby areas, such as Sutton, Ewell, Epsom, Banstead and Kingswood, has increased dramatically. Much of this demand is due to the location of the properties we sell, which are ideally situated on the fringes of London, bordering rural Surrey greenbelt countryside with picture postcard villages and market towns full of rich heritage and character.

Buyers flood into the area to take advantage of a wide range of leisure and shopping amenities. The local schools are nationally renowned and attract large numbers of enquiries, ensuring that property sale levels and prices have remained well above quoted national averages.

Cheam Village has a flourishing local community with many popular cafés, restaurants and varied independent shops and businesses; this, coupled with many high street names, creates an enviable mix of retail and food outlets. Combined with excellent road and rail links, demand for property remains constant and represents an exceptional investment.

Christies have an unparalleled understanding of the area and are dedicated to ensuring customers are always informed – not just on the property market and prices ,but also the area and amenities. When looking at buying a new home, we believe it is imperative that our purchasers are fully informed about all aspects of the potential move.

Your estate agent should be able to answer any of your questions regarding this. We are proud to represent this area and convey that passion to anyone looking to move here.

Please contact either Andrew Richardson, Jeremy Richardson or Richard Killoughery on 020 8643 7777 to get moving or email us at sales@christiesworld.com.

Normal Service is Resumed

It is the height of the moving season and Nick Churton of Christies Mayfair Group London Office takes a look at how the property market is shaping up this spring.

Here we go again. Double dip. What will the property market do now? When will it ever get back to normal? Well, the mortgage lenders are still being difficult and the conveyancers seem to be taking forever to process sales. Buyers are being especially choosy and, bizarrely, some are even letting the internet influence what they should pay for a property rather than the market.

Some sellers still think it is 2006 with prices to match. Surveyors are ever more cautious. These are everyday issues that affect all those involved in buying and selling property. Plus there are the other annoyances like Stamp Duty changes, and confused and conflicting reports made by industry ‘insiders’ in the press. What should a sensible buyer or seller do? 

The answer is to forget all of the above and get on with your move. If you wait for things to get back to normal you will wait forever because there is no normal in property. We are where we are now. Tomorrow may be better or it may be worse. But who really knows. So make the most of it now and move on. Don’t look back.

There may be ups and there will certainly be downs along the way. But the best advice from the people who understand the property market most of all – estate agents - is don’t wait for things to get back to normal. This is normal, or as normal as it gets.

Please contact either Andrew Richardson, Jeremy Richardson or Richard Killoughery on 020 8643 7777 to get moving or email us at sales@christiesworld.com.

Planning the Future

Following the recent government announcements on planning Christies take a look at how they may effect future housing development.

The government’s new planning proposals have had a rough ride over the past few months - and rightly so. Early drafts were not promising and they threatened disjointed, short sighted and self-serving policies that may have put decisions in the hands of disjointed organisations, short sighted people and self-serving business concerns. But all is not yet crystal clear. The phrase ‘sustainable development’ seems to have caused confusion in many, including some of the politicians and planners themselves. If it means we will now build homes that people will be proud of in fifty years then that sounds like good sustainability. But if it means homes of which we will be so ashamed we will tear them down in several decades – as we have with so many from the 1960s - then that, patently, is unsustainable development. 

The final draft however has been met with guarded and grudging approval – even from bodies such as the National Trust and Friends of the Earth. The policy of Brownfield first must be right. To make use of urban regeneration while protecting our countryside wherever and whenever possible still provides enormous opportunities for much needed house building. Where rural development is considered let us hope that planners are mindful of their duty to our heritage. It is our children who will have to live with their decisions, as we have had to live with many poor decisions made by their predecessors. 

Bringing new life into rural communities is important and modern technologies like broadband can attract people who will live and work in a community and not just sleep in it. The government wants to concentrate more on reviving our flagging town centres and less on out of town retail parks. They could be too late for that. 

The public may have moved on a step or two further than government thinking - as is sometimes the case. So an enlightened vision on how we could bring mixed use to struggling town centres, including residential development, may be a way to move forward. But whatever the future brings at least we now have a planning policy that, broadly speaking, people can get behind and which will enable planners to get planning and builders to get building. 

All we need now are the mortgages to help buy what is built. But the government did not mention anything about that . . .

Please contact either Andrew Richardson, Jeremy Richardson or Richard Killoughery on 020 8643 7777 to get moving or email us at sales@christiesworld.com.

Market Comment – 2012 Budget Special

Spare a thought for the poor millionaire now forced, through this 

year’s UK Budget, to pay more for the privilege of using central 

London’s booming luxury property market as a safe haven for his 

investment funds, away from unhealthy currencies. 

Spare a thought also for home-grown millionaires in other UK property hot spots.  They too will be caught in this new 7% Stamp Duty trap of the Chancellor’s making.  Any attempting to escape is futile – tunnelling under the higher tax barrier through the means of an offshore or foreign company has been stopped by way of a massive 15% Stamp Duty. 

Will this have much impact on the property market generally?  Not really, as the early introduction of these measures leaves no room for a mansion-tax-beating rush to buy, and this is a one-off measure aimed at those who really should be able to afford it.  So the impact on sector values should be negligible.  All in all this new measure will probably be met with a sigh of resignation rather than a decision to spend a million or two less, just to avoid the extra tax.  

But do expect to see fewer houses on the market at £2.1 million and more at £1.99 million.  And, who knows, perhaps this top level of stamp duty could even become a trendy new status symbol for the wealthy.

Of greater significance is how the Budget affects the rest of the property market.  Apart from the small tax benefit to the lower paid there seems little in the Budget to stimulate much greater activity, save for a few small pieces of new legislation that somehow fit into the jumbo jigsaw that is our nation’s fiscal recovery.  But perhaps the Chancellor has taken the view, “physician heal thyself”.  Under the radar of the British property press (which is none too sensitive) the market in many places has quietly been perking up.  There have been rumours of first time buyers – tempted out of hiding before the end of their own special tax relief; also, even one or two mortgages have been granted.  

Up and down the country many estate agents cautiously report increased sales figures.  This means several things: buyers are on the move and agents are valuing reasonably.  Most importantly, sellers are listening to reason rather than the little voice of avarice that we all have, but which needs to be mastered when selling property in sluggish conditions. 

The government’s move to relax the building rules in rural areas could vie for attention with the Budget.  This should be of concern to everyone as it is our heritage which could be under threat of concrete.  Visions of bulldozers parked on the village green will cause outrage. And when developers, who through the Budget will now receive some extra funding for new homes, meet head to head with Britons-in-bloom there will be strife.  And there should be.  But this relaxation may bring new life to struggling rural communities as well as providing much needed housing.  So it will be very much up to local planners to prevent a 1960s style architectural catastrophe.  Also the public will need to demand thermally efficient, economical, affordable but stylishly attractive and appropriate homes which will sit comfortably in a rustic environment.

So, the verdict on the 2012 budget, as far as the property market is concerned, seems to be neutral.

Please contact either Andrew Richardson, Jeremy Richardson or Richard Killoughery on 020 8643 7777 to get moving or email us at sales@christiesworld.com.