Which London boroughs will see the biggest house price rises by 2020?
House prices in London will rise by 15.3pc by 2020, despite an overall slowdown in demand and transactions across the capital, according to the latest forecast from the property group Savills. While this is good news for existing homeowners, for young workers and families, who are living with parents or renting, it continues to make even the outskirts of the city worryingly expensive to get on the property ladder.
As of September this year values are 46pc higher than they were at the peak of the last property boom in 2007, just before the global financial downturn and the housing market crash that followed, and 10pc higher than the year before.
The average sales price in the capital was £485,000 over the last 12 months to September and one in 12 transactions were over £1m. However, the overall average house price “hides significant differences between the boroughs,” the report finds.
Homeowners in central London, where the market is dominated by luxury properties and new developments, have seen house prices rise 60 – 65pc over the last eight years, but growth is now slowing considerably.
In contrast, values in some of the outer boroughs such as Waltham Forest, Lewisham and Havering are predicted to soar as people move out of zones 1,2 and 3 searching for more space, better value for money, or simply affordable prices. The cost of a home in these three areas will rise by 20pc, 20pc and 17pc respectively. New developments are also springing up in the outer boroughs aimed at first-time buyers, such as these new studios for £199,999 in Hounslow.
“Particular hotspots may emerge in areas of major regeneration and infrastructure improvements. This may support higher growth in say Ealing [which will benefit from Crossrail but overall the picture is one of slowing growth,” said Nick Gregori, a researcher at Savills. Islington will have the slowest house price growth over the next five years, with values in Camden and Hammersmith and Fulham also creeping along.
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