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Top Ten Fastest Growing London Boroughs of the Year
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Top Ten Fastest Growing London Boroughs of the Year
House prices in outer London continue to outperform property values in more central parts of the capital, as buyers are priced out of inner areas. But which London boroughs have seen the highest price growth of 2015?
Merton has experienced the fastest rising prices this year, with annual growth of 30%. The southwest borough is home to Wimbledon and Mitcham. Houses here now cost around £670,771 – among the capital’s highest average property prices.
However, the second fastest growing borough is Newham, which is one of the cheapest. The area is home to the Olympic Park and has consistently topped monthly price growth indices over the year. In the past 12 months, the average house price in Newham has increased by 25% to £396,012, according to Rightmove’s latest House Price Index.
Newham’s growth is in part down to new developments in Stratford, but Forest Gate is set to become a property hotspot when Crossrail arrives in 2018.
Director and Housing Market Analyst at Rightmove, Miles Shipside, comments on the study: “This is December’s best price performance in the capital since 2008. The most buoyant sector in London overall is the one made up of first time buyer-type properties – two bedrooms or fewer – up by 11% annually.”1
Top ten fastest growing London boroughs of 2015
|
Position |
Borough | Average house price Dec 2015 | Average house price Dec 2014 | Monthly price change |
Annual price change |
| 1 | Merton | £670,771 | £516,951 | 6.3% | 29.8% |
| 2 | Newham | £396,012 | £316,671 | 4.9% | 25.1% |
| 3 | Camden | £1,207,626 | £991,428 | 15.3% | 21.8% |
| 4 | Redbridge | £445,398 | £370,152 | 2.8% | 20.3% |
| 5 | Hammersmith & Fulham | £1,095,788 | £919,982 | 4.6% | 19.1% |
| 6 | Barking and Dagenham | £280,128 | £236,161 | 1.9% | 18.6% |
| 7 | Waltham Forest | £431,917 | £370,775 | -0.4% | 16.5% |
| 8 | Islington | £770,411 | £663,773 | -3.2% | 16.1% |
| 9 | Southwark | £645,101 | £560,235 | 1% | 15.1% |
| 10 | Harrow | £549,153 | £477,812 | 2.1% | 14.9% |
East London’s Barking and Dagenham continues to be a hit with first time buyers, thanks to its good value homes and new build developments. It is the only borough in the capital where the average property price is under £300,000. However, this isn’t expected to last long, as it is London’s sixth fastest growing borough, with prices rising by 18.6% over the year.
Homebuyers and buy-to-let investors are advised to watch the area, as a planned extension of the London Overground will link the huge Barking Riverside regeneration project to the Gospel Oak to Barking line.
Over 10,000 homes will be built at Barking Riverside in the next couple of decades, alongside new schools, shops, offices and health centres. It is located on a former power station site beside the River Thames.
Another east London borough to keep an eye out for is Waltham Forest, home of Leyton, Chingford and Walthamstow. The average house price here has soared by 16.5% over the year to £431,917. Demand has surged in the borough, as buyers are pushed out of more central locations.
Estate agent Savills expects prices in Waltham Forest to rise up to 20% by 2020, so get in there early!
