Home prices in some London areas surge over 50% since 2008
Areas like Hackney and Peckham have become popular with first-time buyers looking to scale the property ladder.
House prices in some of London’s once unfashionable areas have risen by over 50 percent since 2008, outpacing price growth in prime central London, reported Business Insider citing Knight Frank.
Since 2008, eight of the top 10 performing postcodes for home price growth in London have been in the east or south east, with Herne Hill in South East London registering the fastest increase in prices – from £455,528 in Q1 2008 to £728,154 in Q2 2016 (or almost 60 percent), revealed Knight Frank data.
In fact, none of the top 10 areas are considered by estate agents as traditionally “prime”, like Chelsea or Fulham.
Other top performing areas in London include Homerton, Stoke Newington, Walthamstow, Brockley and Peckham. Completing the list are Clapton, Hackney, South Tottenham and Leyton.
The hike in prices comes as trendy restaurants, bars and venues have popped up in areas like Leyton, Hackney, Clapton, Peckham and Stoke Newington – making them the hottest spots for young professionals and first-time buyers looking to climb the property ladder.
“It may surprise some to know that house prices in parts of south-east London have grown by more than prime central London since 2008,” said Tom Bill, London Residential Research Head at Knight Frank.
“While the safe-haven appeal of prime central London meant prices grew strongly after the financial crisis, the regulatory landscape has since got tougher and growth of 32.7 percent is exceeded by areas that include Herne Hill and Brockley,” he said.
“It is a similar story in other more affordable areas of east and north London, where strong demand has rippled outwards and, in many cases, driven a wider regeneration story.”
Research done by Knight Frank in 2015 showed that home prices in Dulwich have soared by 897 percent over the last 20 years, surpassing every other area in the country.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
