London house prices 2019: the 10 best-performing boroughs over the past five years revealed
First-time buyers flocked to the outer boroughs to the east over the past five years, fuelling house price growth there and propping up the floundering London property market in the process, a new report shows.
Values in Barking & Dagenham jumped 51 per cent to £297,039 in the five years to 2019, the fastest growth in the capital and more than double the London average.
The eastern cluster of Newham, Waltham Forest, Bexley, Redbridge and Havering are also named by CBRE as the best-performing areas in its Hot 100 study of the London boroughs.
How London boroughs have performed since 2014
In 2014, which is when price growth peaked, the expensive inner London locations started to cool first, hit by prices becoming unrealistic, punitive stamp duty on luxury homes and political uncertainty which dimmed investment.
At this point first-time buyers got a leg-up from the Government’s Help to Buy deposit scheme, heading east for new developments and lower prices as regeneration brought industrial wastelands back to life.
“The outer east boroughs had some of the lowest property values and therefore the most capacity for growth, while inner London suffered from affordability constraints,” says Jennet Siebrits, head of residential research at CBRE.
Liam Bailey, senior partner at Knight Frank, adds: “Despite tax and Brexit, access to cheap debt has helped underpin prices and even allowed for continued growth in the outer boroughs.”
House prices in east London
The transformation of Stratford, before and after the 2012 Olympic Games, and the redevelopment of the Docklands has driven house prices up 49 per cent to £371,772 in Newham.
On the west bank of the River Lea, at East India Dock, Orchard Wharf is a new, mixed-use scheme under development.
Built by O’Shea and Galliard, the site will offer 338 one-, two- and three-bedroom apartments, a café, shops, courtyard gardens, two parks and rooftop terraces.
In the pipeline: Anthology is building one-, two- and three-bedroom homes from £390,000 at Stratford Mill
Prices for a 544sq ft, one-bedroom flat start from £460,000. Call 020 3146 4813. Sports fans can buy next to the Queen Elizabeth Olympic Park.
Anthology is building one-, two- and three-bedroom homes from £390,000 at Stratford Mill. Visit anthology.london to register interest.
Young families from Hackney and Stoke Newington move to Waltham Forest in search of good schools and more space.
Despite long-term gentrification, “Awesomestow” has retained its hipster reputation and much of the change is for the good, such as the mini Holland project, when the borough was one of three to win funding from the Mayor of London and Transport for London to make its streets safer, reduce traffic and improve the quality of air.
Over the last five years 22km of segregated cycle lanes have been created, the council has improved 100 junctions and trained more than 7,500 schoolchildren to ride a bike.
Spring launch: Hunts Wharf sits between Clapton station and Walthamstow Marshes and will be completed next year
House prices rose 44 per cent from 2014 to 2019 to an average of £435,384.
The London Restoration Group is building 13 new flats overlooking the River Lea.
On the border of Waltham Forest and Hackney, Hunts Wharf sits between Clapton station and Walthamstow Marshes and will be completed next spring.
One-bedroom apartments start from £385,000 and two-bedroom flats from £525,000. Call Savills on 020 7226 6611.
Prices in the west
London’s most westerly borough was an exception to the rule that the east saw the largest house price growth from 2014 to 2019.
Thanks to the regeneration of Uxbridge and arrival of Crossrail into West Drayton and Hayes & Harlington, Hillingdon homeowners enjoyed growth of 35 per cent in the five years to last year.
There are a handful of new homes left at the Howarth Homes scheme Waterloo Wharf in Uxbridge.
The 52-home gated development has parking and prices start from £339,995. Through Cameron estate agents on 01895 252000.