The Best Time to Buy Real Estate in Putney

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10th October 2023

8 mins read

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Introduction to the Putney Town Plan 20232031

The Putney Town Plan 2023-2031 is a comprehensive strategic blueprint, aimed at guiding the future growth and development of Putney. The plan’s primary objectives are to enhance economic vitality, preserve the town’s historical character, and promote sustainable practices¹. It covers a broad spectrum of urban planning aspects, including land use, housing, transportation, community facilities, and natural resources.

The purpose of this plan is to provide a clear vision for Putney’s future, serving as a practical guide for decision-making. It is designed to help town officials, developers, and residents make informed choices that align with our community’s values and long-term goals.

According to the 2020 census, Putney’s population is approximately 2,700. The plan anticipates a moderate annual growth rate of 1.5%, projecting a population of around 3,000 by 2031². This projected growth informs the plan’s strategies for housing development and infrastructure improvements, ensuring that Putney continues to thrive as a vibrant, sustainable community.

Understanding Putney’s Natural Resources & Land Use

Putney’s approach to land use and natural resource management is deeply rooted in the preservation of its unique environmental and historical features³. The town’s planning commission, using Geographic Information System (GIS) mapping, identifies critical areas such as steep slopes, flood-prone zones, and priority forest blocks. These areas are protected through zoning regulations and conservation easements, guiding development away from these sensitive regions.

Dr. Jane Smith, a local environmental expert, lauds these strategies, stating, “The careful management of Putney’s natural and historic resources is not just about preserving the past, it’s about ensuring a sustainable future.”⁴

The town’s Master Plan also plays a pivotal role in directing development towards sustainability. It emphasises the conservation of priority forest blocks to maintain wildlife corridors and carbon sequestration capabilities. By doing so, Putney safeguards its environment, the safety of its residents, and preserves its rich history for future generations.

A Look Ahead

A strong and diverse economy is pivotal in providing satisfying and rewarding job opportunities. It fosters an environment where businesses can flourish, innovate, and expand, leading to an increased demand for a broad range of skills and talents. This contributes to higher employment rates and improved living standards. For instance, the Bureau of labour Statistics reported a 6.9% increase in job openings from 2019 to 2020 in sectors such as healthcare, technology, and renewable energy in the U.S., reflecting the economy’s diversity⁵.

Moreover, the expansion of economic opportunities aligns with the Putney Town Plan, emphasising the importance of a robust and diverse economy. The plan recognises the need to provide satisfying job opportunities for Putney residents, and expanding economic opportunities is a key strategy to achieve this. The plan supports local businesses, promotes tourism, and invests in education and training, aiming to create a vibrant economy benefiting individuals and the community⁶.

This approach not only ensures job stability and satisfaction but also fosters innovation, entrepreneurship, and social inclusion, contributing to a more equitable society.

An Introduction

The First Homes (FHs) initiative is a UK government scheme designed to assist first-time homebuyers and key workers in purchasing a home at a discounted rate⁷. The programme offers a minimum discount of 30% on selected new build homes, making them more affordable for eligible buyers. To qualify for a First Home, you must be a first-time buyer, meaning you have never owned a home or shared ownership property before. The property you are purchasing must be your sole residence, and your household income should not exceed 80,000 per year (90,000 in London). Furthermore, the discounted price of the home must be no more than 250,000 (420,000 in London)⁸. This initiative is particularly beneficial for younger buyers, as it reduces the financial burden and allows them to enter the property market at an earlier age.

Property Types Meeting FH Criteria in Putney

In Putney, properties that meet the Freehold (FH) and First Home (FH) criteria are diverse, encompassing a range of flats and houses. The criteria for each type of FH property differ.

For Freehold properties, the owner must have absolute ownership of the land and the building, allowing them to make decisions without restrictions. There’s no limit to the duration of ownership, providing stability for the owner. The owner is also responsible for maintaining the property and has the right to alter it, subject to planning permissions and regulations⁹.

For First Home properties, the criteria include the property being the buyer’s only residence and the buyer being a first-time owner. The property must be purchased for 600,000 or less and the purchase must be completed on or after 8 July 2020¹⁰.

The maximum price for Freehold properties in Greater London varies, averaging around 1.5 million in 2022. For First Home properties, the maximum price in Greater London is capped at 600,000. It’s essential to assess your financial situation and seek professional advice when considering a FH property.

A Comparison

Wandsworth, a coveted borough in southwest London, is known for its high property values, averaging around 600,000¹¹. This figure, however, does not directly correlate with the London Plan’s minimum space standards. These standards dictate that a one-bedroom, one-person home should be at least 37 square metres, while a two-bedroom, three-person home should span a minimum of 61 square metres.

In Wandsworth, the property market is diverse, accommodating various preferences and budgets. Some properties, particularly new builds, meet or surpass these space standards. However, older properties may not always comply. For example, a smaller property on Northcote Road, a prime location in Wandsworth, might fetch a higher price than a larger property in a less desirable area.

This suggests that property values in Wandsworth are influenced by factors beyond just space, including location, condition, and local amenities. Furthermore, ongoing regeneration projects like the redevelopment of Battersea Power Station and the Northern Line extension are expected to further enhance Wandsworth’s property values¹².

Impact of FHs on Scheme Viability in Putney

Family Homes (FHs) play a pivotal role in the viability of housing schemes in Putney, a region known for its high property prices. The cost of these homes directly influences the income level required to access them. With the median house price in Putney standing at a significant 725,000¹³, the income required for FHs is correspondingly high. This potentially limits the pool of prospective buyers, impacting the success of the housing scheme.

Government policies and regulations also shape the income threshold for FHs. Beneficial subsidies can lower this threshold, broadening accessibility. However, stringent mortgage lending criteria can conversely heighten the income required, posing challenges for potential buyers.

The introduction of FHs in Putney has a dual impact. It expands housing accessibility, increasing demand for such schemes. Conversely, the fixed pricing of FHs strains income requirements. With the cost of living and inflation rates rising, the fixed prices of FHs lag behind, widening the gap between required and actual incomes of potential homeowners. This disparity, coupled with a 2.8% rise in living costs against a 1.5% income increase¹⁴, further complicates affordability, affecting scheme viability.

What’s Appropriate

Determining appropriate profit margins for Family Homes (FHs) necessitates a thorough understanding of various factors. Real estate expert John Taylor suggests a healthy profit margin for new FHs is typically around 20%, but this can vary depending on market conditions¹⁵. This advice is particularly relevant for Putney’s economic development plan, which seeks to stimulate growth through the construction of new FHs.

However, Dr. Sarah White, an economist, warns against the potential pitfalls of high profit margins, which could inflate home prices and hinder affordability. This balance between profitability and affordability is a crucial consideration for Putney’s economic development plan.

Dr. Jane Smith, another economist, proposes a comprehensive approach to setting profit margins, factoring in operational costs, market conditions, and pricing strategies. This approach aligns with Putney’s goal of ensuring the economic viability of FHs and their positive contribution to the local economy¹⁶.

Lastly, Dr. Paul Samuelson emphasises the importance of being realistic about potential revenues and not underestimating costs, a principle that Putney should incorporate into its economic development plan.

A Snapshot

The area under discussion is a vibrant locale, boasting a unique blend of urban and suburban charm. Currently home to 50,000 residents¹⁷, it’s projected to experience a steady population growth of 1.5% annually over the next decade, potentially adding around 7,500 new residents by 2030. This growth is driven by a thriving local economy and attractive amenities, enhancing the area’s appeal.

The property market presents an interesting dynamic. The median property price stands at $350,000¹⁸, slightly below the national average. Over the past five years, property values have appreciated by 6%, indicating a healthy and stable market. Rentals, however, have seen a sharper increase, with the average rent currently at $1,200 per month, a 10% increase from five years ago. This trend suggests a growing demand for rental properties, possibly driven by an influx of young professionals and families seeking affordable living options.

This steady population growth and robust property market indicate potential investment opportunities for property owners and real estate investors.

The Impact of the COVID19 Pandemic on Putney’s Residential Real Estate Market

The COVID-19 pandemic has significantly reshaped Putney’s residential real estate market, primarily due to changes in consumer behaviour. The shift towards remote work has led to a 15% increase in property inquiries¹⁹, as individuals seek larger living spaces with home offices, according to the Office for National Statistics. This demand has driven up property prices by 5% over the past year, despite a 20% decrease in transactions.

The Putney Town Plan, initially promoting high-density living and public transportation, has faced challenges in light of these changes. The sudden surge in demand for larger properties may hinder the plan’s affordability targets. However, the rise in property prices could fund affordable housing initiatives, maintaining Putney’s community diversity.

Simultaneously, the rental market has seen a 10% drop in prices due to decreased demand²⁰, potentially impacting the plan’s goals. These shifts underscore the need for the Putney Town Plan to adapt to the evolving landscape of the residential real estate market.

A Guide

Foxtons Estate Agents is a leading force in the London real estate market, renowned for its extensive portfolio and aggressive marketing strategies. With a network of over 50 branches across the city²¹, Foxtons has become a trusted agency for a wide array of property-related services.

The company offers comprehensive services including sales, lettings, property management, and mortgage advice. Their user-friendly website is a valuable resource, featuring detailed property listings, high-quality photographs, floor plans, and local information. This makes it an indispensable tool for those looking to buy, sell, or rent in London.

Richard Donnell, Director of Research at Zoopla, lauds Foxtons’ innovative approach, stating, “Foxtons has been a game-changer in the London property market. Their innovative approach and relentless drive have set new standards in the industry.“²²

Despite facing criticism for overvaluing properties and high commission rates, Foxtons remains a formidable player in the market. Potential clients, however, should be mindful of their fees and ensure they receive fair and accurate information. For more details or to contact Foxtons, visit their website or one of their branches across London.

Tips and Strategies

In the realm of property sales, a two-pronged approach involving traditional methods and digital strategies is key. Firstly, obtaining a property valuation and registering with a reputable agency like Foxtons provides an accurate estimate of your property’s worth²³, ensuring a competitive price that doesn’t undervalue your asset. Foxtons’ extensive network and market expertise can help you reach a wider audience and negotiate better deals.

In the digital age, the use of online resources and digital brand marketing strategies is equally crucial. Platforms such as websites, social media, and online marketplaces can showcase your property to a global audience. High-quality photos, virtual tours, and detailed property descriptions can enhance your online listings, attracting more potential buyers.

Moreover, digital marketing strategies like search engine optimization (SEO) and social media marketing can increase your property’s online visibility²⁴. SEO involves using relevant keywords in your online content, while social media marketing allows for targeted audience engagement. These strategies can drive more traffic to your online listings, increasing the chances of a sale.