London house price hotspots

The London property market may have taken a bit of hit recently by Brexit, especially at the luxury-end, but new figures still reveal that average house prices in the capital are around double that of the rest of England and Wales.

Residential ConveyancingThe average property in London now costs £578,381 which is approximately double the price of property across England and Wales, where the average is £278,750.

This contrasts sharply with the situation 20 years ago, when the gap was significantly smaller. According to research by Lloyds Bank, an average home in London only 20 years ago, was valued at just over £105K, which was around £34K more than the average property in England and Wales. This illustrates how the London market over the last couple of decades as escalated to staggering levels.

It has been estimated that a typical home in London now costs around 12 times average earnings in comparison to 4 times average earnings back in 1996. It has also been estimated that you need to be earning a six-figure income to live in the capital.

So, which areas have seen the biggest rises?

Hackney, in particular, has seen extraordinary increases, with average property prices increasing from around £76K in 1996 to £606K in 2016. That’s over 700%!

Waltham Forest and Newham have also seen huge price increases over the last 20 years, with increases of over 600%. All three of these areas were considered ‘affordable’ 20 years ago, but since then, there has been significant ‘gentrification’ of these boroughs and this has seen the prices go through the roof.

Of course, the pricier boroughs have also see major increases in the last 20 years, with prices in Westminster going up by 648%.

Westminster, together with Kensington, Chelsea, Camden, Hammersmith and Fulham have been the most expensive London boroughs over the last 20 years. Barking and Dagenham is London’s cheapest borough with average house prices at just over £285K.