Nearby Dartford top price-rise hotspot for property coming second only to Croydon
Tom Ferguson (Sales Manager of Drewery Property Consultants) gives an update on the local sales market:
It was speculated by most that the investor activity drop-off after the April 1st stamp duty deadline would help to slow down property prices at the lower end of the property market. However, the rush of transactions that the property market witnessed in March seems to have only caused a property drought in this sector and because of this we are starting to witness price increases on one and two bedroom properties in the Sidcup and Bexley area and Rightmove has also reported a strong price surge of +6.2% on lower end properties across the country. Our very own sales department also witnessed a 60% increase in property transactions in March compared to 2015 and it has also been reported that total transactions overall increased by 80% on a national basis during the same period.
Despite the increase in stamp duty we are still seeing investors keen to purchase one and two bedroom flats in the Sidcup and Bexley area because they still make a good long term investment due to their higher yields, potential for capital gains and consistently high demand from tenants. With Bexley still being considered as one of the most affordable London Boroughs, many property investors we are working with consider Bexley as a safer option to invest in as they consider there is still much growth in the area for property prices to increase.
In May Rightmove reported that Croydon was country`s top price-rise hotspot for property coming on the market compared to a year ago, and perhaps what was more interesting is that Dartford was a close second and has recorded a jump of 18.5% in property prices. Like Bexley it seems that Dartford is now considered a popular and affordable area for London buyers prepared to commute from the South east region but both boroughs also still provide good rental yields for investors so demand is still coming from both investors and first time buyers.
The Rightmove house price index has reported an annual price change of +13.2% in May for
Bexley and a monthly change of +1%. The neighbouring borough of Bromley witnessed no monthly change in property prices. Greenwich witnessed a -5.2% drop in property prices again confirming that the property market is still behaving very different in each London Borough.
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