Whilst our latest property price tracking survey indicates that prices in many London boroughs are still on the rise (Source: Land Registry), with some areas extremely 'hot', there are some more up to date indices which indicate that London house prices may have peaked. Buyers and sellers beware through - this doesn't mean they are going to come crashing down!
London boroughs potentially overheating
Waltham Forest and Lambeth
Currently, Waltham Forest and Lambeth are experiencing astonishing year on year growth of 26% and 24% respectively. This suggests these areas are overheating and buyers need to be extremely cautious not to overpay for a property.
Hackney and Southwark
The annual average growth for both Hackney and Southwark is around 21%, which would also suggest these areas are potentially overheating, however in Hackney, the monthly growth is showing signs of slowing from the end of 2013 and early 2014.
Islington, City of Westminster, Ealing Wandsworth and Haringey
All these areas are performing extremely well, with year on year growth of between 17% and 18.5%, but are not quite in house price 'bubble' territory. Read my articles:-
Areas in London with the highest price rises since 2007/8
In 2007/8, house prices were at the highest in most London boroughs than they had ever been. Then came the credit crunch, and even in the powerful London property market, prices crashed by 14 to 22%.
The following areas have not just recovered to their 2007/8 heights, but have experienced staggering growth:-
Are there any bargain areas in London?
As with many areas across the country, there are some London boroughs that haven't benefitted from double digit growth and have either not recovered to their 2007/08 height and are still less than they were SIX years ago or have only just exceeded this level. These areas are:-
If you are struggling to buy a property in your preferred location in London, it's always worth researching neighbouring or up and coming areas, to see if they are more affordable. Check out how all the Boroughs are performing:-
For FREE, independent and up to date advice on Buying, Selling or Renting a Property, sign up for FREE to Property Checklists. Join now to access our FREE property checklists, including:-