There's been much talk of a ‘bubble’ and to be honest most of it's nonsense. That’s probably not what first time buyers want to hear, but I’m afraid the year on year increases we are seeing in London are not ‘bubble’s at all, more average property price growth returning.
I know that’s scary for some people, but it’s better to be aware of this from a decision making perspective.
Currently, Greater London property prices, according to the Land Registry are running at an increase of 11% per year, which is on par with the average annual increase for property prices since 2000.
Areas which are growing at more than this include Hackney, Wandsworth, Waltham Forest, Hammersmith and Fulham and Lambeth. Interestingly, prime areas like Kensington and Chelsea which were growing at a fast rate have now seen their year on year growth slowing down quite considerably.
But, the good news is there are still plenty of areas around Greater London that provide easy access to tubes, trains and the new tram which are still ‘affordable’.
Below I’ve highlighted the London Boroughs which have property price trends that suggest they are still good value, growing ‘on average’ or are in danger of over-heating. Of course, I can’t promise this will continue to be the case, but it’s important to buy a property and understand what the current market is doing.
Download my full analysis – be warned it’s a bit of spreadsheet full of numbers, but find your Borough and then work across the sheet, it should make sense!
Top 3 London Boroughs that are good value for money
These areas, in theory, are still worth considering buying in as they should grow in value – but that’s a conclusion based on the past, not the future!
Prices 7% lower on average versus 2007 and growth 2013 versus 2012 was +4%
Barking and Dagenham
Prices still 10% lower on average than in 2007, growth 2013 vs 2012 +10%
Prices 5% lower than in 2007, growth 2013 vs 2012 +6.7%
Also, I'm loving stats from my old ‘haunt’ in Croydon –property prices 4% lower than 2007 and property price growth 2013 vs 2012 just 6.6%. Great transport links too!
Top 3 Boroughs with property prices growing ‘at their average’ rate
These areas are currently growing at similar average rates as they have done for the past 13 years. So, in theory, this could be a good time to buy, but prices could come down if the economy falters.
Bromley – prices only 4% higher than in 2007, average price growth is 9% per annum
Hounslow – prices 6% higher than 2007, average price growth annually is 9% p.a
Greenwich – prices 3% higher than 2007, average price growth annually is 8-10% p.a
Top 3 Boroughs potentially ‘overheating’
In these areas property prices are growing at more than their annual average rate since 2013. It suggests they are ‘overheating’ so be aware stretching yourself could be a problem if prices do come down and you need to be weigh up buying now and risking prices coming back down versus buying now and prices continuing to rise – a tricky decision!
But if you are selling and want to maximise your price, now might be a good time to consider moving!
Hammersmith and Fulham, prices have risen 15% 2013 vs 2012 and are 32% higher than 2007 heights.
Wandsworth, prices have risen 16% 2013 vs 2012 and are 25% higher than 2007 heights
Lambeth, prices have risen 15% 2013 vs 2012 and are 21% higher than 2007.
For more information download our latest data.
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