London house prices 2019: the capital’s best and worst areas for house-price growth
House prices have been dropping slowly across the capital since last summer — to an average of £614,000 — with certain boroughs recording particularly dramatic falls.
However, new figures from Rightmove show that the picture of doom is not spread evenly throughout London’s highly localised property market.
The research has identified the areas where house prices have risen the most in a year, as well as those where they have fallen fastest.
Topping the list for house price growth is the sprauncy hilltop village of Hampstead in north-west London.
From Harry Styles and Boy George to Thierry Henry and Ricky Gervais, the affluent area has long been a desirable destination for the rich and famous to set down roots in.
The average asking price for a property in this leafy part of London is currently £1,521,867, up from £1,463,648 last year.
Vivienne Harris of Heathgate Properties, an estate agency based in Hampstead, is unsurprised by the news. “Hampstead is a jewel and there is little wonder why the property prices remain robust, even in these uncertain times,” she says.
As popular as Hampstead is, it has not been immune to a fall in house prices over the past few years, however.
“The Hampstead property market has seen times of depressed prices, but as it is such as unusual place to reside and its appeal is so broad, there are always more people wanting to live in the area than properties available,” says Harris.
“Due to the demographic nature of the buyers and tenants, money is not always the overriding factor and whilst everyone is conscious of market forces, populations move for a variety of reasons,” she said.
Southwark’s Surrey Quays came in second place, with the average asking price of a property increasing by 3.7 per cent to 533,607 over the past year.
The area is sandwiched between Bermondsey and Canary Wharf with excellent train links and lower house prices then its neighbours.
“When you look at the long term future for Surrey Quays and Canada Water, it is completely understandable that prices and demand have continued to do well here, despite the current short term negativity affecting most of London,” says Jaimie Beers of Madley Property in Surrey Quays.
“The property prices in the area were starting from a position of value and the addition of the Canada Water Masterplan and other new developments have only added to the appeal of an area that already had fantastic transport links and amenities,” she said.
Kilburn, Battersea and Highgate saw the next three highest house price rises over the past year.
At the other end of the scale sits Victoria in Westminster. Here, the average price of property has dropped 10.9 per cent from £1,543,806, to £1,375,160.
Richard Jacobs, director of the Victoria estate agency Soames, was circumspect, however. “I think these statistics should be taken with a pinch of salt.
“The market’s weak everywhere, except for first time buyers and those buying outside the centre of London, and we know why that is. Any property for over £1 million is proving difficult to sell and this is due to the banks and the political situation.”
Where London house prices are falling
Prices have dropped 9.7 per cent over the past year in Stockwell in Lambeth, down from £1,012,578 to £914,106.
Sydenham in Lewisham has seen a drop of 7.5 per cent, while Islington’s Finsbury, and Notting Hill in Kensington have seen prices fall by 7.3 per cent and 6.9 per cent respectively.
House prices in the UK
The Welsh seaside town of Barry in the Vale of Glamorgan topped the list for the largest house price growth in the UK.
Made famous as the hometown of Stacey in the popular BBC series Gavin and Stacey, the area has the most thriving house market in the UK, with the average asking prices rising by 11 per cent over the last year. This compares with an overall increase in Wales of just 2.9 per cent.
Situated under ten miles away from Cardiff, the average asking price of a property has risen from £172,752 to £191,050 over the past year.
Andrew Fenton, sales director at Vale of Glamorgan-based Chris Davies Estate Agents, said: “Barry is the place to be, so I’m not at all surprised by Rightmove’s findings.
“Property prices here compared with Cardiff and its suburbs are comparatively reasonable. We’ve seen a lot of economic growth and there are 2,500 new homes being built down at the waterside called The Quays. We’ve also got very good schools down here,” he said.
“I think even five years ago, Barry was popular with home-hunters, but a major factor recently has been the abolition of the Severn Bridge tolls. Since then, people in Newport have been priced out of their own town by investors from Bristol, so those people have been coming to Barry.”