The last 12 months have been an interesting period in the London property market. Firstly, the stamp duty reform meant that buying an average priced flat in Streatham (currently £363,888) would be £2,722 cheaper, whilst buyers paying over £925,000 would pay more under the new regime. Secondly, the government’s Autumn Statement announced the phased reduction of mortgage interest tax relief for buy-to-let investors and the removal of the ‘wear and tear’ tax relief. The most recent blow to landlords is the additional 3% stamp duty imposed from April 2016.
How has this affected the Streatham property market?
Property prices in Streatham are up 11.25% in the last 12 months, putting growth ahead of pricier neighbours Balham, Clapham and even property hotspot Brixton. New developments such as Streatham Hub, and a surge in new cafés and restaurants has prompted an influx of house-hunters attracted by Streatham's varied housing stock and access to green spaces. Future developments such as Streatham Hill's London Square are further proof of SW16’s popularity.
“We’ve had a busy start to 2016 in Streatham with buyer and tenant registrations at record levels. In January we achieved £685/sqf on a one-bedroom flat, 19% above the average price/sqf over the last year. Rental demand is also strong with professional sharers paying up to £780/tenant”, says Misty Dowson, Streatham Branch Manager.
“After five years of double-digit growth in Streatham it is becoming more difficult for first-time buyers to get on the property ladder but, with the recent buy-to-let tax changes, first-time buyers may have more choice in 2016 if landlords start selling up.”
“Overall, Streatham continues to outperform surrounding areas and remains an excellent 5-year investment. Rents increased by around 10% in 2015 and, with a limited supply of properties and increased demand, are likely to rise further.”
This article first appeared in Heart Streatham magazine's February 2016 edition
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