For the first time since tracking the annual growth of all the London Boroughs, although not quite at 'housing bubble' levels seen before, yet, we are seeing some Boroughs, like Hackney, with growth levels higher than their annual average. These statistics are from the Land Registry data.
Areas potentially overheating
Since 2000, the average annual house price increase in this area has been 19%, including one boom and one bust. Currently, with a 20% rise year on year, this could suggest the area is overheating and buyers need to be very, very cautious not to overpay. However, it is worth noting that since the height of the market in 2007, this area is still good value for money.
I also have a soft spot for here and Harringey as I lived very happily there for many years as a student while at the LSE!
The average annual growth since 2000 is 13%, but 2014 versus 2013 showed an astonishing 18% year on year growth. House price bubble time in this area back early in the Millennium, when prices grew by 31% year on year, so we aren't at that level yet, but with restrictions on mortgages, buyers need to be aware they are likely to be buying in an overheating market.
Wandsworth and Lambeth have growth figures similar to Waltham Forest.
Hammersmith and Fulham and Lewisham
These areas are both doing very well, and although they are 'overperforming' versus their annual average from a price growth perpsective, it's not yet house price bubble territory. On average, in Hammersmith and Fulham, prices rise each by 14% per year, and January 2014 versus January 2013 they grew by 15%. In Lewisham, the numbers were an average of 13% per year and currently growing at 15%. See my article on:-
Areas in London with the highest price rises since 2007/8
In 2007/8, most London boroughs' house price levels were at the highest they had ever been. Along came the credit crunch, and even in the powerful London property market, prices crashed by 14 to 22%.
The following three areas though have not just recovered to their 2007/8 heights, but prices are rocketing even higher:-
Staggering growth this may be, actually over a six year period, none of the above areas have acheived their average annual growth rate since 2000, so to some extent, they are still 'value for money'. Scary though that thought may be!
Bargain areas for Londoners?
London however is a big place and not everywhere is benefiting from the property propaganda and scare stories of double digit growth.
The following areas have yet to recover to their 2007/8 heights, so although prices are rising in each of these areas 2014 vs 2013, on average, prices are still less than they were SIX years ago!
So for those keen to buy in London still, check out how your Borough is performing by downloading my analysis.
And if you do still want to buy, make sure you read my article 'dangers of buying in an overheating market'.
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