House prices up nearly a fifth as commuters compete for choice properties

Staggering: house price rises

Staggering: house price rises

First published in News
Last updated
Surrey Comet: Photograph of the Author by , Senior reporter

House prices in Kingston have climbed again this month in a “bonkers” market fuelled by commuters looking for an easy route to central London.

According to property website Rightmove, the average Kingston home now costs £774,562 – up 4.5 per cent from last month and a staggering 17 per cent from last March.

Sellers across the capital are getting more than 99 per cent of their asking price, analysts Hometrack said, but in parts of Kingston buyers are willing to splash out even more to secure a home.

Gareth King, sales manager at Chancellors in Surbiton, said: “It’s bonkers. You have got so many active purchasers coming at the moment, coming from particularly Wimbledon and Richmond, where they are being priced out.

“They are paying very good money for the area here, from what they are used to in their local areas.

“The competitiveness comes in and you get the bidding scenario. There is just nothing else on the market.

“I can only see the prices going one way.”

Mr King said he has sold several properties for prices higher than what was asked – and that 64 people showed up to a single open house event, for a one-bedroom apartment in the Oakhill area.

On average, London homes spend less than three weeks on the market. Kingston’s homes are the seventh-most expensive in the capital.

Hometrack research director Richard Donnell said the real drivers of higher house prices are record low mortgage rates, and strong demand from first-time buyers with no property to sell.

Tougher mortgage rules will come into force next month, meaning lenders will have to make sure buyers can afford their mortgage repayments even when interest rates eventually start to rise.

The average rent in Kingston is £1,117 a month, according to HomeLet’s rental index.


TODAY'S TOP STORIES

 

Comments (2)

Please log in to enable comment sorting

3:13pm Fri 4 Apr 14

DB says...

House prices are ridiculously high, but £775k on average?? A lot of the more expensive parts of the Kingston borough are primarily made up of flats and it is only the very most flashy of those that gets over £500k.

There are areas like Coombe where houses can cost many millions, but for every one of those, there must be 100 or so houses in areas like Chessington that are 'only' £3-400k.

I wonder what exclusions have been made to get to a £775k average?
House prices are ridiculously high, but £775k on average?? A lot of the more expensive parts of the Kingston borough are primarily made up of flats and it is only the very most flashy of those that gets over £500k. There are areas like Coombe where houses can cost many millions, but for every one of those, there must be 100 or so houses in areas like Chessington that are 'only' £3-400k. I wonder what exclusions have been made to get to a £775k average? DB
  • Score: 7

3:24pm Fri 4 Apr 14

DB says...

I wonder how much longer this can go on.

Mr King is dead right that it is buyers from the more expensive neighbouring boroughs that are spending this type of money and they are being priced out of their own areas by foreign investment, so I suppose it will last until London becomes less fashionable internationally.

I certainly feel sorry for anyone trying to buy somewhere at the moment if you have to compete with 64 other buyers just to get hold of a flat on the wrong side of the Surbiton tracks.

I guess there are a lot of investors in the 'game' as well although I am not sure I'd fancy that based on the figures in this article - average house price of £775k and average rental of £1,117 per month looks suspiciously like a 1.7% gross yield to me! Probably a bit more in reality as properties rented out are more likely to be lower than average value.

Mind you, who cares about rental income if the investment itself is going up 17% a year!
I wonder how much longer this can go on. Mr King is dead right that it is buyers from the more expensive neighbouring boroughs that are spending this type of money and they are being priced out of their own areas by foreign investment, so I suppose it will last until London becomes less fashionable internationally. I certainly feel sorry for anyone trying to buy somewhere at the moment if you have to compete with 64 other buyers just to get hold of a flat on the wrong side of the Surbiton tracks. I guess there are a lot of investors in the 'game' as well although I am not sure I'd fancy that based on the figures in this article - average house price of £775k and average rental of £1,117 per month looks suspiciously like a 1.7% gross yield to me! Probably a bit more in reality as properties rented out are more likely to be lower than average value. Mind you, who cares about rental income if the investment itself is going up 17% a year! DB
  • Score: 6

Comments are closed on this article.

Send us your news, pictures and videos

Most read stories

Local Info

Enter your postcode, town or place name

About cookies

We want you to enjoy your visit to our website. That's why we use cookies to enhance your experience. By staying on our website you agree to our use of cookies. Find out more about the cookies we use.

I agree