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Borough by borough: Hammersmith and Fulham
A small borough in the south west of London, Hammersmith and Fulham is building on its good reputation and we see a big future as a number of large developments promise to revitalise the already strong market.
Hammersmith and Fulham is a small borough in south west London; it has the fourth lowest population in London with just 183,478 residents. Despite being slightly out of the centre, it has the fifth highest average house price in London at around £792,000, this follows an above average increase last year of 17% (it is 130% higher than it was a decade ago).
In recent years, there has been significant development activity in the area, which now boasts a Westfield shopping centre. One of London’s largest regenerations, the Earls Court redevelopment, is taking place within the borough, but testament to its size this also extends into Kensington and Chelsea.
The new settlement will span 77 acres and provide 7,500 new homes. It will offer 41 acres of open spaces together with leisure, education, health and community facilities. This will be in conjunction with a hotel, shops and private hospital making this the most extensive redevelopment seen in the borough in memorable history and is expected to completely revitalise Earl’s Court, with increasing prices having a knock-on effect throughout the borough. Phase one of the redevelopment, Lillie Square, has sold well, with 225 of the 237 units sold during 2014.
There are other large regenerations taking place throughout the area including The Dairy Crest Site which will provide 1,036 homes and BBC Television Centre which will provide 801 homes. Fulham Riverside will provide 400 units when completed and is currently selling well. Prices at this scheme have continued to increase throughout the live sales period, with the average now being around £1,250 psf.
Large parts of the borough benefit from its proximity to the river. As a result, many new build schemes offer river facing units. These units achieve a significant price premium. Our analysis shows that river facing units achieve a 10-15% premium compared with the same flat facing in the other direction.