Average home price approaches half a million pounds

Property prices in W12 have hit their highest ever level, according to the latest official figures.

The average price of a Shepherd's Bush home in the third quarter, from July to September, was £490,338.

That was up 6.1% over the previous quarter, when the average was £462,273 and up by 16.7% on the same period last year.

The number of homes changing hands is also up from 95 in spring to 102 - a 7.4% jump during the summer period which is normally quiet for estate agents.

This activity is being led by houses. The number of terraced houses changing hands has leapt up by a huge 51.7% from 29 to 44.  The average price meanwhile is up from £594,600 to £624,134 - up 5% on the previous quarter and 14.9% over a year.

The number of semi-detached houses being sold remains small - five in summer, and six in spring -  and prices show a slight slip of 2.9% this quarter, they are still up a huge 63.1% compared with one year ago.

Sales of flats and maisonettes meanwhile are less buoyant, with 53 sold in summer compared with 60 in spring. Average prices have also dropped by 2.8%, from £323,925 to £319,471. In the longer term however, the trend is still positive with a year on year rise of 6%.

Christian Harper of local agent Oliver Finn said: "We have certainly enjoyed a much better quarter than expected. Buyers' numbers have reduced, however the quality of buyers is second to none.

" Stock still remains paramount to the market stability. Instruction levels were expected to fall due to seasonal activity, however good proceedable buyers will not wait forever and the market could stall if stock levels do not improve at the start of 2011. What a great and unexpected opportunity for sellers to capitalise whilst the going is good. I feel that European economics will play a larger part in market confidence during the next quarter"

For London as a whole the Land Registry data shows an increase of 8.8% in September over the same month in 2009. The average price of a London residential property is now £340,344. This is the smallest annual rise since December 2009. Compared to August prices fell by 0.6%

The Nationwide's House Price index is suggesting a lower overall increase in prices than the Land Registry. This is based on offer prices for homes rather than achieved sale prices. Martin Gahbauer, Nationwide's Chief Economist, said: " October saw a continuation of the modest downward trend in house prices that began at the start of the summer. The average price of a typical UK property edged down by a seasonally adjusted 0.7% month on month
in October."

He now thinks that a second round of quantatitive easing will be supportive for the property market.

Shepherd's Bush Property Prices - July - September 2010

Shepherd's Bush Property Prices - April - June 2010

Source: Land Registry

November 29, 2010