When living in London, moving to an up and coming area can seem like an appealing way to release some equity from your home. But it can be tricky to decide where. Different London hot spots emerge year on year after undergoing major regeneration which makes them desirable areas to live, rocketing the house prices. On top of this, there are the famously affluent areas where house prices remain consistently high. Here, our guide to London property prices shows you what you need to know when it comes to the different boroughs.
A general trend that online estate agents have seen is London property prices rising in the outer boroughs as more people move out of the central zones in favour of more space. When looking for the most accurate property prices in London, always compare the prices across several sites.
Boroughs with the highest rising prices
The London borough where property prices are rising the fastest in 2016 is Merton in the South-West of the city. Home to places like Wimbledon and Mitcham, it witnessed the biggest hike in property prices in 2015 with the average home now costing around £670,771.
Other areas such as Greenwich, Hounslow, Enfield, Hammersmith and Fulham, have also been strong performers in 2016 with house prices in these outer areas continuing to rise. The average house price in Greenwich this time last year was £399,997 with the same type of property selling for £485,679 this April.
Boroughs with the lowest property increase
London property prices in areas that are most central seem to be the ones that are remaining the same or reducing in value, as central Londoners head for properties on the outskirts. With prices in the more affluent Kensington and Chelsea boroughs of West London seeing a minus 12.8% annual change, there’s a definite trend for moving to less highly regarded areas coming through. An average house in Kensington costs around £1,349,000 and only experienced a 2.3% price growth since September 2014, showing that people are looking to move to the areas of regeneration on the edge of the city.
Property Prices: London Changes
According to figures released by the land registry in 2016, the most affordable areas have experienced the highest price rise hike and only 11 of London’s 33 boroughs now have average house prices of under £400,000. However, plans for the new 2018 Crossrail development should see London property prices increase further in these areas as they become more desirable to commuters.
Bexley, in South West London, has emerged as the most affordable London borough and has even started to attract long term renters thanks to its open spaces, great schools and under 1hr commute into Charing Cross station. A semi-detached home costs anything from around £370,000 to £440,000 and a three-bedroom Victorian terrace sells for around £320,000 to £330,000. Barking and Dagenham still remains fairly cheap, however prices have increased by 16% on last year with the average house price now being around £326,461.
This increase in the London property prices in cheaper areas is sure to affect where London’s population settle, especially which areas first time buyers can afford to make a home in. As even these more affordable areas become further and further out, young people are looking to rent for a much longer period of time than buying property in the capital.
Take a look at our properties online at House Network to work out where you can afford to move to with the changing property prices. London has so many up and coming areas that if you do your research on the property prices across different boroughs you’ll be able to source a new property in no time.
Image courtesy of iStock