London house prices: Barking and Dagenham records steepest rises as growth slows across the rest of the capital
Two of the most affordable boroughs in the capital – Barking and Dagenham, and Havering – have experienced double-digit growth over the past 12 months, according to new figures released by Rightmove.
Yet the average asking price of a property in Greater London has risen by just 2.5 per cent in a year, making it the second slowest region in England in terms of price growth.
Asking prices have fallen by up to eight per cent in a quarter of London boroughs in a year. The prime central London boroughs of the City of Westminster and Kensington and Chelsea, where homes average £2 million, have seen the biggest falls.
Although June’s Brexit vote had an immediate impact the market, slowing price growth isn’t solely related to the UK’s decision to leave the EU.
After several years of double-digit rises, affordability has weakened and cooling price growth is widely seen to be a natural correction by property experts.
Modest price growth
A third of boroughs have seen growth of up to five per cent in a year, including Richmond in south-west London where homes now average £900,000 after modest growth of 0.2 per cent.
Meanwhile, a 4.2 per cent growth of in north London’s Islington and west London’s Harrow has increased prices to £760,000 and £500,000, respectively.
“Gone are the days when the annual price rise of your London property earnt you more money than working,” says Miles Shipside, Rightmove director and housing market analyst.
“There’s more stock available for sale, and with buyers more hesitant to commit, sellers who want to be out before Christmas will have to make their property look very attractive on price and presentation to secure a sale.”
Double digit growth
Despite 11.2 per cent price growth, east London’s Barking and Dagenham is still the only borough in the capital to record average house prices under £300,000.
Stretching across travel zones 4 and 5, the borough is home to east London’s largest single regeneration project, Barking Riverside, a 15-year project that is delivering 10,800 new homes to house 29,000 people on a former power station site on a two-kilometre stretch of the Thames south of the town centre.
House prices in Havering now cost £350,000 after 12.3 per cent growth. This is largely due to the forthcoming high-speed Crossrail train line, which is due for completion in December 2018.
Romford, Gidea Park and Harold Wood, all within the borough of Havering, will each have stations on the eastern section of the Elizabeth line.
Reports from Rightmove earlier this year showed that asking prices for homes along the line soared by up to a third in 12 months, with the furthest reaches of the route emerging as its best performers thanks to journey times to central London being slashed so heavily.