W I N C H E S T E R H O U S E P R I C E S H O L D S T R O N G

M A R K E T I N S I G H T

www.chartersestateagents.co.uk

The local market is now outperforming London in terms of price rises, so people relocating from the capital need to act fast to ensure the greatest choice. ROBERT MOTT

H A M P S H I R E | S U R R E Y

N O V E M B E R 2 015

Market overview Encouraging economic backdrop Local lettings market particularly buoyant Market slows in the capital Rugby clubs boost local markets

W I N C H E S T E R A N D A L R E S F O R D

W I N C H E S T E R I A L R E S F O R D I A LT O N I F A R N H A M I L O N D O N

Market overview FA C T S & F I G U R E S

Economic conditions remain favourable for the UK housing market, with the latest Office for National Statistics figures showing an annual increase of 3.7% in average earnings. This, combined with low levels of inflation means that the spending power of UK consumers is on the up. Buyers from London are finding the market around Winchester increasingly competitive. Analysis shows that funds from the sale of a London property offer buyers more limited options outside London than this time last year, a trend which may encourage those relocating to move fast.

E C O N O M I C C O N D I T I O N S R E M A I N FAVO U R A B L E F O R U K The UK economy remains strong. GDP is now estimated to be 5.9% above its pre-downturn level at the start of 2008 and higher than previous estimates. Unemployment is close to the long-term average seen before the 2008 downturn and wage growth has also picked up in recent months. The debate on the timing of the inevitable interest rate rise continues but the consensus is that it will be gradual.

The housing market has responded to these conditions with a rise in the number of UK residential transactions recorded in August: the third consecutive monthly rise and the highest level since February 2014 (HMRC). Nationally, house prices rose a further 0.5% in August and 4.2% over the last year according to the Land Registry.

Further legislation has come into force in the private rented sector. Landlords are now required to fit smoke and carbon monoxide detectors in their properties. Failure to meet these requirements could result in local authorities fining landlords up to £5,000, reinforcing the need to receive professional advice on rental properties.

T H E LO C A L M A R K E TLand Registry figures show that average house prices in Winchester rose 1.4% to £515,400 in the third quarter of 2015, compared to the previous quarter. Semi-detached houses saw the most dramatic change, as values rose 34.9% between Q3 2014 and Q3 2015. In Winchester, approximately 16 potential buyers compete for each family home in the £350,000 – £800,000 price bracket, including professional first-time buyers, investment purchasers (sometimes from overseas) and downsizers moving from the surrounding villages to enjoy the city lifestyle. Families are also tempted by convenient facilities and excellent schools. The village market around Winchester, while still popular, has seen slightly less growth.

Terraced housing is proving popular in the Alresford area, increasing in value by 17.7% over the last year, while semi-detached and detached properties increased by 14.9% and 14.8% respectively. Town centre properties are proving the most popular, with semi-detached properties in the £350,000 – £400,000 price bracket most in demand. While local buyers moving within the area dominate the market, people moving from London tend to look at higher end properties.

The Homelet rental index shows that values in the south east are increasing at 7% per annum. Properties are letting quickly, with tenants competing for homes at all market levels. Winchester has seen a number of corporate lets in the £3,000–£4,000 per month bracket and people moving from London like to test the waters before committing to a purchase.

106,480 NUMBER OF RESIDENTIAL

TRANSACTIONS ACROSS THE UK IN AUGUST,

A 3.1% RISE FROM JULYHMRC

£321,589 AVERAGE ASKING PRICE

IN HAMPSHIRE, UP 2.6% IN THE LAST MONTH

RIGHTMOVE HOUSE PRICE INDEX

7.6% ANNUAL GROWTH IN PROPERTY

VALUES ACROSS HAMPSHIRELAND REGISTRY

15,000+ NUMBER OF MORTGAGE DEALS

AVAILABLE EXCEEDS 15,000 FOR THE FIRST TIME

SINCE SEPTEMBER 2008OFFICE FOR NATIONAL STATISTICS

3.7% INCREASE IN AVERAGE

WEEKLY EARNINGSOFFICE FOR NATIONAL STATISTICS

7.66 AVERAGE SCORE OUT OF 10 THAT

RESIDENTS OF HAMPSHIRE GAVE TO RANK THEIR HAPPINESS. THE INNER

LONDON AVERAGE WAS

7.33OFFICE FOR NATIONAL STATISTICS

NOVEMBER 2015

Q4 2013

Q3 2014

Q3 2015

56%

75%61%

For the last four months, house price growth across the south east has outpaced London’s growth rate. Annual growth in the capital is now at 6.6% compared with 7.6% in the south east. Before this, London had enjoyed 65 consecutive months of faster rates of growth.

A year ago, flats in inner London were selling for an average of £666,303. This would have generated enough money for a buyer to pick and choose their favourite from 75% of

detached houses sold in Winchester and Alresford and their surrounding villages.

However, the current combination of prices falling in London and rising in Winchester and Alresford has reduced affordability for people relocating from the capital. In Quarter 3 2015, proceeds from the sale of a London flat would have financed the purchase of just 61% of the detached homes sold in Winchester and Alresford and their surrounding villages.

B U Y E R S F R O M LO N D O N M AY N E E D TO M OV E FA S T

T H E P U R C H A S I N G P O W E R O F L O N D O N E R S

2015 has seen a narrowing of the gap between London and areas of the country like Hampshire. As a result, the spending power of people relocating from London has diminished, especially since the heady days of the property market in London in 2014. Our chart shows what percentage of detached houses would have been available to London buyers in the last three years if they had sold an averaged priced apartment in the city.

Source: Land Registry

London to Winchester and Alresford è

of detached houses around Winchester and Alresford could be bought for the sale of an average inner London flat

of detached houses around Winchester and Alresford could be bought for the sale of an average inner London flat

of detached houses around Winchester and Alresford could be bought for the sale of an average inner London flat

£565,508

£666,303

£663,479

www.chartersestateagents.co.ukH A M P S H I R E | S U R R E Y

MANAGING DIRECTOR 01962 888930r.mott@ chartersestateagents.co.uk

WINCHESTER BRANCH DIRECTOR 01962 830880e.trodd@ chartersestateagents.co.uk

ALTON BRANCH PARTNER01420 87666m.marsh@chartersestateagents.co.uk

Robert Mott Elliott Trodd Michael Marsh

ALRESFORD BRANCH PARTNER 01962 734633m.clark@ chartersestateagents.co.uk

Matthew Clark

FARNHAM BRANCH PARTNER01252 891886t.branston@chartersestateagents.co.uk

NEW HOMES DIRECTOR01962 888930f.light@ chartersestateagents.co.uk

Tim Branston Fiona Light

All data and charts supplied by Dataloft, www.dataloft.co.uk

Disclaimer: This report is produced for general information only. Whilst every effort has been made to ensure the accuracy of this publication, Dataloft Ltd accepts no liability for any loss or damage of any nature arising from its use. At all times the content remains the property of Dataloft Ltd under copyright and reproduction of all or part of it in any form is prohibited without written permission from Dataloft Ltd.

Date of publication: November 2015

H A M P S H I R E A N D S U R R E Y ’ S 1S T X V The rugby world cup has raised the profile of the game across the country. Across Hampshire and Surrey, properties close to the 15 most prominent rugby clubs have marginally outperformed the south east region over the last year. Properties sold so far in 2015 cost 4.4% more than those sold last year, compared to 3.6% for the south east. This has been more pronounced close to the rugby clubs sponsored by Charters: Farnham (7%), Alresford (9.6%) and Winchester (9.6%).

Rugby s added value

TO U C H L I N E S U P P O R T Charters take pride in sponsoring three local rugby clubs – Winchester, Alresford and Farnham – as part of our community programme. Over the course of the season we will be cheering them on from the touchline, encouraging the players and supporting club organisers, many of whom give up their own time to get involved.

This is part of our wider initiative to encourage Hampshire and Surrey sport. We also have an established association with cricket and football, as well as myriad community events, which enable us to truly get to know our customers better.

If you are considering selling or letting your property, please do contact any member of our dedicated team today for an informal first chat or to arrange a more formal consultation.

Source: Land Registry, properties sold in 2014 compared to 2015 to date in postcode districts of rugby clubs

SOUTH EAST 3.6%

FARNHAM 7%HAMPSHIRE RUGBY CLUBS 4.4%

WINCHESTER 9.6%ALRESFORD 9.6%

ALL CHARTERS SPONSORED CLUBS (combination of three above)

7.9%