27 February London House Prices Continue to Rise
The London borough of Merton has seen the biggest price rise in London over the past year. The borough, located in South West London and including Wimbledon and Mitcham has seen an overall price rise of 9.8% from December 2016 to December 2017.
The average price of a house in the area is now £534,000.
Transport For London recently announced that additional transport investments will be coming to the area in 2017, which will on push prices higher.
A £70 million extension to the Croydon Tram Network will be coming to the area in September of 2018. A new branch will run through South Wimbledon, Morten and Sutton.
There were also plans announced for a new housing development in Morden, being called an over-the-station development.
Merton was among just four London boroughs that sold more home in 2017 than it did in 2016. Sales were up by around 5% in the period. This represents significant growth when compared to the rest of the capital. A third of boroughs saw house sales fall by as much as 30%.
The north-west borough of Brent was the most drastically effected with sales there falling by 62% in 2017.
London’s top performing boroughs across last year were as below:
• Merton – +9.8%
• Tower Hamlets – +9.4%
• Greenwich – +7.3%
• Bromley – +5.7%
• Redbridge – +5.7%
Areas of east London dominate the list of boroughs with the highest average price rises. Billions of pounds of investments are coming into Tower Hamlets with 14,000 homes under construction in the area with a further 12,000 planned.
The region saw an average price rise of £44,000.
Homeowners in Greenwich saw their homes selling for an average of £28,000 more than the previous year. The borough’s average house price is now £402,000. The increase is being largely attributed to the large-scale redevelopments of Woolwich and Abbey Wood which are both to be on the long-coming Crossrail Elizabeth Line which is due to open at the end of 2018.
Crossrail’s effect is being felt in Redbridge too.
Average prices rose from £402,000 to £425,000 with four stations in the area which will pick up the east-west Crossrail route.
Bromley, London’s largest borough, is benefitting from good rail links and a rural lifestyle attracting buyers anxious to get out of the heart of London. Average prices hit £454,000 in December 2017.
The Ripple Effect
The prices in London continue to ripple effect outwards throughout the south east. The most expensive boroughs in London to buy is Kensington and Chelsea, where prices average £1.2 million. This despite a recent 10.7% fall.
The cheapest borough by contrast is Barking and Dagenham where an average home costs £297,000.
Overall the capital’s house prices increased by 2.5%, reaching £484,000 which is more then double the UK average at just £227,000.
The effect of London is seeming to bleed into the south-east where prices had been static until July 2017 but are now starting to see a rise again. This is a trend that is expected to continue throughout 2018.
Contact us today to arrange a valuation or consultation on 0207 581 4540 or 0788 764 4929