_Fulham house and flat markets behave “independently of each other” 

Trading volumes in the Fulham house market are more resilient than the flat market as asking price reductions have become more prevalent among higher-value properties, said James Davies, Knight Frank’s Fulham office head.

In an indication of how lower asking prices have underpinned sales volumes, there was a 24% year-on-year fall in transactions below £1.5 million in the first nine months of 2017 compared to a smaller 9.3% decrease above that price point, Land Registry data shows.

The average reduction for a property in SW6 valued above £1.5 million, the price point above which most properties are houses, was 10.2% in the final three months of 2017 compared to a 7.2% cut below that price, Rightmove data shows.

“Flat buyers in Fulham are cautious about spending £1,100-plus per square foot and have been prepared to look elsewhere to get the exact property they want, “ said James. “It’s started to change in 2018, but some buyers have been drawn to parts of London which have experienced bigger price reductions such as Ladbroke Grove or areas of Chelsea.”

The relative divergence between the two markets in Fulham is indicative of a wider trend across the prime London property market. Higher rates of stamp duty mean buyers are scrutinizing the market for pricing inconsistencies more intensely than in previous years.

While there is no uniform pattern across the capital, the stamp duty hikes had an earlier and more marked impact in higher price brackets, which has led to quicker asking price adjustments and higher liquidity in some areas.

In prime central London, for example, average prices rose 1.9% in the year to December for homes valued at between £5 million and £10 million, compared to a fall of 1.2% for properties priced at between £1 million and £2 million.

“Flats in Fulham held their value well into the first half of 2017,” said James. “Meanwhile, the market for houses appeared to make its final major corrections in the latter half of 2016 and early 2017. As a result, you now have a situation where the two markets are almost behaving independently of each other.”

“Although the flat market is transitioning, demand is picking up for properties where a realistic view has been applied to pricing. We have now seen flats follow houses and start to look better value again versus neighbouring areas.”

James Davies is head of Knight Frank's Fulham office. The Fulham sales team is on hand to help with any query related to buying or selling property in the area.