Revealed: What London boroughs have had the largest house price growth over the past 20 years?
London has continued to reinvent itself over the past eventful decade, finding new and innovative transport links and regeneration programmes which have as a result created entire neighbourhoods that were not even thought of as a ‘luxurious’ place to live 10 years previously.
Over the past 10 years London has been shaped by the effects of the global financial crisis, which has had far reaching effects on the London housing market. Interest rates have remained low, the Bank of Mum and Dad has become a major player in lending and home buyers are trading up the housing ladder far less frequently. The trigger of article 50 has also had a substantial affect in the uncertainty of the property market, marking the start of a gruelling two years of negotiations for the UK to part from the European Union. We are left in a very uncertain climate of which way the property market could fall until the country’s future outside the European Union has been settled.
House price growth across Greater London rocketed during the last decade, with prices in every borough up by more than 60 per cent since 2007.
The average price of a London home in 2007 was £292,000; 10 years later this stands at £478,000, an increase of 78 per cent.
In contrast, prices across the UK are 11 per cent below their 2007 level, on an inflation-adjusted basis, according to recent figures from Nationwide.
New research from Halifax has found that over the past 20 years, property prices per SQM in southern England has risen significantly ahead of the rest of Britain, with prices growing by 402 percent in Greater London compared with a national increase of 236 percent.
In the last five years alone, London prices per SQM have increased 57 percent – from £3,259 to £5,115. This compares to Scotland, which saw the smallest increase for the last five years, with prices increasing by 12 percent on average, or £164 to £1,529.
The East London borough of Hackney has seen the largest price leap from 1997. Over the last two decades prices in Hackney started at a measly £814 and 20 years on they now sit at £6,128 which is the equivalent to a 753 percent rise over the past 20 years which is nearly twice the London average in the same period!
Below are the ten areas that have seen the biggest increase over the last 20 years, Hove being the only one making the top 10 list which is the only town outside of Greater London.
20 years on: the existing property market climate
While the growth seen over the past 20 years has sent property prices spiralling in recent years, a gradual slowdown is now being seen across London and the rest of the UK following the political and economic uncertainty we are currently faced with. Wage increases have also failed to keep up with house price rises over the past five years, so it's no surprise that buyers have hit their price ceiling.
In July the average UK sold property price increased by 4.7 per cent to £221,000, which is significantly slower than in the same period of last year. However, it is consistent with the price growth so far, this year.
By contrast, the average London house price rose by three percent, to £481,000 over the same period, according to the most recent figures from the Office of National Statistics (ONS). These recent figures are in line with the expectations that the growth in house price in 2017 will be around half of what it is was in 2016. Once negotiations over the pending departure from the European Union have been finalised we should start to see the property market stabilising and by 2019 we should start to see it pick up and stabilising back to how it was in 2007.