Every Investor – Location, Location, Location No Longer No. 1
Location, location, location, the property mantra that gave its name to a highly successful TV show. Unfortunately, across inner London, the age-old adage has ceased to apply, according to new research by independent London estate agency James Pendleton.
The firm has seen a 30% rise in the number of household buying, outside of the area they initially register in. Buyers almost always sign up with agents in the area they wish to purchase, however in the past 5 years the percentage of people registering in one James Pendleton branch before buying in another has risen from 55% to 72%.
The company has ten offices covering inner London’s most in-demand areas, Balham, Battersea, Clapham, Fulham Tooting etc. The latest areas to demonstrate a dramatic transformation in recent years is fashionable Brixton, where average prices have surged to an average £512,409 compared with £279,637 ten years earlier, a rise of 83.2%. This compares with a rise of just 20.8% across the UK which has seen the average price also go up from £178, 636 to £215,847 in the same amount of time.
Lucy Pendleton, Founder Director of James Pendleton commented,
“In inner London, ‘location, location, location’ has become ‘property, property, property’. In the post-gentrification era, the right home is far more important than where it happens to be.
Demand in inner London has reached such a critical mass that gentrification is no longer relevant. Everywhere is gentrified, everywhere has ‘come up’. This is giving buyers the confidence to branch out into virtually all residential areas in inner London.
What we are also seeing is that the premium being charged in traditionally sought-after areas, where prices are typically higher, can no longer be justified based on the local environment alone. Widespread gentrification over the past decade has created a much more level playing field. We’re seeing people registering in Chelsea before buying in Battersea, and beginning their search in Fulham then moving to Tooting. But this phenomenon also creates a real affordability problem for people on lower incomes and with smaller budgets. These households are at increasing risk of being squeezed out of inner London, having to travel closer to the Greater London boundary and beyond to find homes they can afford.”