As Covid restrictions have ended and professionals have returned to their offices, demand has started to gather pace for properties in Battersea and Clapham after a dip at the end of the stamp duty holiday. Viewings carried out over the last quarter indicate that professionals still want to live in London and are preferring central locations well served by transport links as they return to their offices either full or part time. Ryan Gray, Branch Manager of the Gordon & Co Battersea Office commented: “Demand seems to be returning for properties throughout South London as people return to offices. The Clapham and Battersea areas of London are always popular, and we anticipate continued and steady demand for homes in the area over the coming months.”
Current House Prices in Battersea & Clapham
Average house prices in Clapham have increased over the last two years by approximately 29%. The average price in Clapham is now £1,047,667* (as at end July 2021). Most of this house price growth has applied to terraced houses while apartments have lost some of their value. We believe this trend to have been underpinned by the Covid effect which has seen an increase in demand for larger properties with gardens.
House prices in Battersea are down overall over the past two years with the average property price having fallen to £761,500** as at end July 2021. However, the median value of terraced properties increased by 6% during this period to a value of £1,351,250** while the average prices of apartments decreased in the same period. We expect that the planned regeneration in the area will support stable house prices and perhaps some growth over the coming years.
The End of the Stamp Duty Holiday
The end of the first phase of the stamp duty holiday caused a hiatus in demand for properties in London as there was no longer the sense of urgency to exchange and complete on a home driven by the June deadline. Demand abated in July, but we saw a stable growth in enquiries during August. Typically, properties in Battersea and Clapham are priced above £250,000, the reduced stamp duty holiday threshold, so we do not expect the tapered stamp duty holiday that ended last month to impact demand or prices in the local market.
Demand for Green Space
The buyers that we talk to love the abundance of green space in Battersea and Clapham. After a year of lockdowns, it has become clear how important it is for people to have green space on their doorstep and homes within reach of London Parks are hugely popular (link to parks article). Battersea Park is a fantastic space and Clapham Common remains a firm favourite among buyers and residents in the area.
The Rail Effect: Northern Line Extension Now Open
The opening of Battersea Power Station and Nine Elms Northern Line extensions last month is set to make Battersea even more desirable as it further improves its transport connections. Jones Lang La Salle have predicted that house prices around Battersea will rise by 25% over the coming five years because of this new transport and other infrastructure.
Rental Market in Battersea and Clapham
The rental market in Battersea and Clapham remains buoyant after a turbulent 2020 as people exited London. Many landlords were forced to reduce their rates to secure tenants, but rental rates are now returning to pre-pandemic levels as people return to the city.
Return to Offices
As people are being encouraged to return to offices, we have seen an increase in enquiries for property in and around Battersea & Clapham. We believe that businesses will increasingly require workers to return to offices or adopt a hybrid approach that will see people choosing to live within a commutable distance of their office despite not having to go in every day. This will continue to underpin and maintain the house prices and demand for property in the area.
Property to Sell or Let in Battersea or Clapham?
Demand for property in Battersea and Clapham remains strong and prices are stable. We are looking for properties to sell or let in these areas to meet demand from property purchasers and tenants. Talk to our team today for a no obligation valuation of your property.
Disclaimer: This blog post is produced for general guidance only, and professional advice should be sought before any decision is made. Nothing in this post should be construed as the giving of advice. Individual circumstances can vary and therefore no responsibility can be accepted by the contributors or the publisher, Gordon & Co, for any action taken, or any decision made to refrain from action, by any readers of this post.