Real Estate

Why bankers buy houses in Blackheath


Blackheath in south-east London might mark a starting point of the London Marathon, but the local property market looks like it might be running out of steam.

The smart, village-like neighbourhood has seen property transactions slump in recent years — sales in the first nine months of 2018 were 47 per cent lower than in the same period in 2014, according to Land Registry data compiled by Hamptons International. Local agents say there is one group of buyers still active in the Blackheath market, however: bankers — and, in particular, bankers with babies.

“Around 70 per cent of our Blackheath buyers are upsizing from an apartment in Canary Wharf or closer to central London and are now looking for a place to raise their family,” says Josh Olive, a director at Savills.

The influx of young professionals to the area has played a part in boosting Blackheath’s house prices. In the past 10 years, average values have increased by more than 40 per cent, according to Land Registry data compiled by Hamptons International, to reach £666,700.

The neighbourhood’s community feel attracts property buyers © Alamy

“Blackheath comes off a relatively low base so while it has seen strong price growth it was historically always the poor relation,” says Henry Pryor, a buying agent based in London. “People would have preferred to buy in places like Dulwich or further west towards Putney and Wimbledon — but more and more people have discovered the secret of Blackheath.”

As such, he says, the place is home to “quite a lot of new money: people who have made a bundle across the river in Canary Wharf and who crave respectability and the chance to show that they’ve arrived”.

The wealthy will hunt for one of the large Georgian and Victorian houses lining the heath, which Olive says can command prices up to £3m. “But these are extremely rare to come to the market as they will stay in the same ownership for decades,” he says. “The Cator Estate is another popular place to live as it’s a quiet, private residential area.”

On Pond Road, within the private Cator Estate, JDM Estate Agents is selling a six-bedroom Grade II-listed house with planning permission for a proposed extension for £2.85m. Hamptons International is selling a five-bedroom house on Vanbrugh Park directly fronting the heath for £1.35m.

Five-bedroom house on Vanbrugh Park, £1.35m

Because of the relatively few sales in Blackheath, the average house price can jump around. The average value in 2018 was 8.5 per cent higher than in 2017, but only 0.1 per cent on the 2016 average, according to Land Registry data compiled by Hamptons International.

Mark Ruffell of Knight Frank says the variety of stock — from small apartments to grand family homes — means people often trade up and down the ladder. “Many will also tell you that Blackheath has a great community feel to it, which is very important to people looking to stay in the long term,” he says.

Community feel is right: on the first Saturday of every December, Blackheath hosts “Village Day”, which culminates in the switching on of the Christmas lights. Last year’s entertainments included a homemade samba percussion workshop, where attendees were invited to bring pots and pans to bang; and, as in previous years, there was a performance in the Crown by the Blackheath Morris Men.

In September, the area hosts the outdoor festival On Blackheath, which last year featured performances from Squeeze and Paloma Faith.

On the other side of the heath from the pub, on Dartmouth Row, Hamptons International is selling a six-bedroom terraced house dating from 1690 for £2.35m. On Shooters Hill Road, John Payne Estate Agents is selling a five-bedroom Edwardian home with a modern kitchen for £1.65m.

Blackheath, which straddles the Lewisham and Greenwich boroughs, provides a short commute for those working in the city: it is just a 30-minute journey by train and DLR into Canary Wharf. Savills is selling a four-bedroom family home on Brandram Road, a short walk from the mainline station, for £1.35m.

“Its proximity to Canary Wharf makes it attractive to young professionals who value an easy commute in the week, and a slower pace of life at the weekends,” says Nick Dawson, a buying agent at Garrington Property Finders.

Another attraction is Blackheath’s expanse of green space from its 200 acres of protected commons. “Many residents feel like they get the vibe of country living,” says Olive.

Not that it will feel all that quiet in early November. For Guy Fawkes night, Blackheath hosts one of the largest fireworks displays in London. Perhaps this year it will wake up the sleepy property market.

Buying guide

  • An annual rail season ticket to central London Terminals costs £1,060
  • The average price per square foot is £697 compared with £655 for London
  • Schools include Blackheath High School, Colfe’s School and John Ball Primary

What you can buy for . . .

£500,000 A two-bedroom period apartment a few minutes’ walk from the village

£2m A four-bedroom townhouse near Blackheath station

£4m A six-bedroom family house situated directly on the heath

More homes at propertylistings.ft.com

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