London house prices have taken downturn, with an average decrease of 5% across the capital. However, not all boroughs are in the same boat; certain areas are experiencing growth against the odds.
London’s property market, typically robust, has shown signs of strain with an overall decline in house prices by around 5%. This drop is significantly steeper compared to the rest of England and Wales, which saw a more moderate decrease of 1.1%, according to the latest data from the Office for National Statistics.
Winners in the Downturn
Despite the general downtrend, some boroughs have bucked the trend, showcasing resilience and even growth. Hackney leads the pack with an impressive 1.3% increase in house prices, which translates to an average price bump of £6,700, making it the strongest performer in the capital. This east London borough now boasts an average house price of £589,517. Isaac Odegbami, an analyst at Hamptons, points out that “Hackney is one of the fastest-growing places in the capital, if not the country, from a price perspective.”
Brent and Greenwich also saw their house prices climb. Brent recorded a rise of £6,700 (1.1%), while Greenwich experienced an increase of £4,300 (0.9%).
The Steepest Declines
On the other end of the spectrum, some central London areas witnessed significant drops. Westminster experienced the most dramatic fall, with house prices plummeting by 20.8%, wiping almost £240,000 off the average house value.
Other boroughs such as Lambeth, Merton, Lewisham, and Croydon also saw substantial decreases, with year-on-year falls ranging from 5.8% to 7%, eroding thousands of pounds off property values.
The Bigger Picture
Despite these fluctuations, the market is also offering more options for buyers. Jeremy Leaf, a north London estate agent, elaborates on the current state of the market: “Sellers have been active, resulting in a mixed bag of price changes—some up, some down. This trend is expected to persist over the next few months.” Leaf also hints at a potential easing of mortgage rates following a period of inflation decline, which could invigorate demand.
Why This Matters
The House Price Index, although trailing behind other indexes, is highly regarded for its comprehensive coverage and accuracy. It accounts for a broad range of transactions including those made in cash, offering a clear picture of the market dynamics.