Since the financial crisis, house prices have grown faster in affordable parts of London than they have in Fulham and Mayfair.
New analysis shows that while house prices jumped in the sought-after neighbourhoods of central London immediately following the 2008 crash, more affordable parts of the capital have since become growth hot spots.
According to Hometrack, house prices in Walthamstow have jumped 133 per cent since 2009, making it the London area with the highest house price inflation over that period.
Meanwhile, prices in prime areas such as Hampstead, Mayfair and Islington have grown by 87 per cent, 88 per cent and 89 per cent respectively.
|
Area |
Postcode |
House price inflation between 2009 and 2017 (%) |
|---|---|---|
|
Area Walthamstow |
Postcode E17 |
House price inflation between 2009 and 2017 (%) 133.2 per cent |
|
Area Clapton |
Postcode E5 |
House price inflation between 2009 and 2017 (%) 133.1 per cent |
|
Area Peckham |
Postcode SE15 |
House price inflation between 2009 and 2017 (%) 129.9 per cent |
|
Area Leyton |
Postcode E10 |
House price inflation between 2009 and 2017 (%) 128.4 per cent |
|
Area South Hackney |
Postcode E9 |
House price inflation between 2009 and 2017 (%) 121.9 per cent |
Richard Donnell, insight director at Hometrack, said: "As a global city, London's housing market covers a wide range of sub-markets with different drivers of demand."
Average values on London's high-end homes rocketed before 2012, in the early stages of the global recovery from the financial crisis, Donnell said. This was due to investment from wealthy overseas buyers who regarded London property as a safe haven.
Prices on middle-market London homes didn't start shooting up until 2013, when mortgages became more widely available and borrowing costs came down. This boosted housing demand in London's outer boroughs, and house price growth in these areas has now outstripped the growth recorded in central London immediately after the financial crash.
Now, house prices are growing eight per cent year-on-year in London's lower-value markets, while prices are falling five per cent year-on-year on London's most expensive homes. Price falls on high-end homes have been triggered by former chancellor George Osborne, who increased the rates of stamp duty on houses worth more than £1m.
House prices are now increasing fastest on London's most in-demand homes (Source: Hometrack