With property prices increasing by as much as 21% in 2014, Balham has outshone common high-performing locations such as Kensington, Riverside and Holland Park to become London's number one property hotspot. Due to this staggering increase, approximately £152,000 was added to average property value in Balham.
Kensington, Chelsea and Holland Park saw an increase of 8% but, although these areas are home to many of the very high-end properties which attract buyers, demand for affordable homes forced many people to branch out to the areas with close connections to the city, such as Balham and Battersea. This explains the reasons behind such an increase of property value in the SW12 and SW11 areas.
How about Greater London as a whole?
Greater London's property market has increased considerably over the past five years, being 46% higher than it was this time five years ago. Since the same time last year, we have seen an increase of 17% to property values alone, spearheaded by the growth in Balham, which clearly makes Greater London an exciting investment opportunity. However, the current trend indicates that property prices are falling, not rising.
This is likely caused by uncertainty surrounding the general election, taking place on the 7th May. If either Labour or Liberal Democrats gain power, we can expect either a Mansion Tax or a Council Tax revaluation. This explains why the market has slowed. However, once the election is finished, we can expect a price growth in the region of 3-6% from May onwards.
Lettings continue to increase in Greater London, with 11.4% more properties being let compared to this time last year, and rents have increased by 6.3% in the same period. Demand for high quality still remains, as Landlords who are investing into modern refurbishment are receiving good rental figures.