Today we’re talking about the south London borough where the latest figures from the HPI Index show price growth levels above all other areas of London. But why have prices for homes in this borough risen far above the rest? We’ll explore some possible reasons for this increase and why the borough is such a great place to live for a range of different buyers.
We’re talking about…
Merton. This leafy south-west London borough sits between Croydon to the east and Richmond Park to the west and its largest neighbourhoods include Wimbledon, Mitcham and Mordon.
From affordable first-time buyer flats to multi-million-pound family homes, there are very distinct areas and property types in the London Borough of Merton.
What the figures say
In December 2017, property prices in Merton were up 8.05% compared to December 2016 and grew in the preceding three months from 1.41% in September. This was following a period where house prices were down year-on-year over the spring and summer months. As of December, the average house price in Merton was £525,443.
This year-on-year price increase outstrips all other London boroughs, with Redbridge coming in second with a strong average percentage house price increase of 5.26% and an average price of £423,318.
Although the volume of homes sold in the London Borough of Merton was not quite what it was in 2016, it was still at 92% year-on-year.
Why prices might have increased
Announcements were made in September 2017 that TFL has committed to extending the Tramlink between South Wimbledon and Sutton. This extension is much needed, as there are no underground services beyond Morden and there’s now significant strain on current train services due to a rising number of people buying in the area and commuting into central London.
Around the time the Tramlink extension was approved, we saw a rise in house prices in the Merton borough.
London house prices tend to increase when properties are close to an area where major development is planned. In anticipation of future demand, prices start to increase even before works start, as is the case of areas close to the Elizabeth line.
Another reason for the increase in Merton’s property prices could be the ongoing regeneration of local town centres, such as Mitcham and Colliers Wood, which finally saw the area’s biggest eyesore ‘The Tower’ – opposite the underground Station – being redeveloped and completed in November 2017. Alongside this, Colliers Wood welcomes new shops and amenities that are continually improving the area.
First-time buyers
Some of the most affordable properties in the London Borough of Merton can be found in Mitcham. We currently have suitable first-time buyer properties available to buy in Mitcham from £190,000 and the area’s getting a makeover, which is great news for future growth and demand.
Second-time homeowners
If you’re looking to move up the property ladder using equity from your current flat to buy a house, the areas close to Figges Marsh in Tooting and Mitcham have great potential. Here, you can purchase a three bedroom house from around £530,000.
Family homes
Wimbledon is perhaps the most popular family area in the borough, owing to the large number of Outstanding schools, beautiful parkland and well established town centre. But families can find slightly more affordable homes in nearby Raynes Park and towards Earlsfield.
In conclusion...
The reason for Merton's average property price rise appears to be down to the transport and amenity improvements being made across the borough. Encompassing a wide range of different neighbourhoods, it's a great area for many buyers and it looks like it might be the right time to sell your home in you live within the borough.
