In February 1997, the average property price in London was just £107,829. Jump forward 20 years to February 2017 and the average price stands at £638,368 – a huge £530,539 in capital growth.
City of Westminster has seen house prices hike up a mammoth 784.27% over the past two decades, the fastest pace of price growth of any borough in London.
Second is east London’s Hackney. Property prices here have grown by a staggering 678.95%, from just £75,210 in 1997 to £585,848 in February this year.
Have London house prices reached their peak?
Robert Nichols, Managing Director of Portico, says:
“According to Land Registry figures, despite a 4.6% year on year average price increase from January ‘16 to January ’17 across the London boroughs, 8 out of the 33 boroughs saw house prices decrease. Transactions across Greater London are critically low, and high-end home sales and property prices have fallen most sharply in London’s exclusive neighbourhoods.”
The agent’s data reveals that outer London house prices may not have reached their peak however.
According to Land Registry figures, property prices in Barking and Dagenham experienced a healthy 13.23% price growth year on year from February ’16 to February ’17.
Outer London boroughs Croydon (12.54%), Merton (12.23%), Newham (11.35%) and Haringey (11.33%) also experienced strong year on year property price growth.
Mark Lawrinson, Regional Director of Portico estate agents, says:
“If you want to invest in London property and benefit from capital appreciation, location is absolutely key. Buy in areas that are experiencing infrastructure investment or regeneration, that offer healthy yields so mortgage repayments aren’t a problem. As London has proven in the past when it bounced back from the recession, it’s an extremely resilient city, so if you are buying with a medium to long-term view then your investment as a business or home is safe.