House prices in London have seen the weakest growth in the UK, with Land Registry data showing just a 2.5% annual rise compared to the rest of the country’s 5.2% average. But some parts of the city are still performing well…
The average asking price for property in London is currently £627,951, according to Rightmove data, which is 1% lower than it was in February 2017. Although across the capital as a whole asking prices shot up by 4.4% month-on-month from January to February, there are 22% less homes for sale now than there were a year ago, and this lack of availability could be the main factor that is keeping parts of the capital afloat – while other areas of the city are seeing significant declines.
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Selling times have also increased, up to 83 days on average compared to 64 days this time last year, according to the house price index from Rightmove.
But there is a brighter outlook in some parts of the city, particularly in the outer zones away from ‘prime London’.
1. Bexley
The London borough that has seen the most impressive house price growth over the past year is Bexley in south-east London, which covers areas including Bexleyheath, Bromley, Dartford and Thamesmead. Here, property prices have jumped by an impressive 4.2% since February 2017 to £408,466 on average, with a 1.3% increase reported in the past month.
2. Walthamstow
In terms of how long properties are on the market for, the top performing area is Walthamstow, where it takes an average of just 26 days to sell – and the average property costs £473,852. However, houses in the borough of Waltham Forest, where Walthamstow is situated, have lost 2.4% of their value on average over the past year, with a 0.4% negative monthly change, indicating Walthamstow itself is the anomaly in the area.
3. Hackney
The most central borough in London to have seen positive house price growth is east London‘s Hackney, where the average home is now listed for £654,695. This is a 3.6% boost from the previous year, and a 0.2% monthly increase. Hackney is predominantly in underground zone 2, and has become increasingly popular with young professionals in recent years as the area has seen huge investment and gentrification.
4. Other areas in the east and north
In Barking and Dagenham, also in the east, property prices have gone up by 3% on average since February 2017 to £317,065, while further out of the city in Havering prices have risen 2.8% to £409,814. Redbrige is another top performer with house price growth of 1.3% to £453,600, and Haringey has seen a modest 1% rise to £607,736.
5. Croydon
In south London, the only borough to have seen house prices go up is Croydon, which is set to benefit from huge investment with the addition of a new Westfield shopping centre, among other things. Here, property prices have risen by 0.8% to £440,521, although the last month has seen a slight 0.2% decrease.
Miles Shipside, director at Rightmove, said:
“The lack of new listings in the typically pricier more central locations indicates that some would-be sellers are holding back, preventing a glut of competition from forcing prices downwards. Cash-rich owners are showing that they are able to sit tight instead of coming to market now and await their hoped-for price recovery.”
