Prices rising in the east as Londoners look for value
- Holiday season casts its usual shadow, with price of property coming to market falling by 1.9% (-£12,068) this month, in line with the average 2.2% drop seen at this time of year since 2010
- While London’s annual rate of price increase remains subdued at 1.6%, it is the more easterly boroughs that appear to be rising most:
- Hackney leads the way with the largest year-on-year increase, up by 8.9% (+£10,308), and also bucking the summer holiday blues with a 1.5% rise this month
- Search for value for money and Crossrail effect also boost the annual rate of the easterly boroughs of Redbridge (+7.7%), Bexley (+5.7%), Greenwich (+5.7%), Newham (+5.1%) and Havering (+3.4%) – all outperforming the London average of +1.6%
- Annual rate remains muted at +0.9%, with more expensive £700k+ boroughs being the main drag on London’s year-on-year price performance
The price of property coming to market in London has fallen by 1.9% (-£12,068) this month. A large price fall when the summer holiday season is in full swing is not unexpected, with the capital especially prone to volatility when both buyers and sellers have holiday distractions. Indeed, this drop is very much in line with the average for this time of year, which has been 2.2% over the seven years since 2010. However, the London market does face some well-documented headwinds, and this continues to be reflected in the subdued annual rate of increase of just +1.6%.
Miles Shipside, Rightmove director and housing market analyst comments: “Londoners value their summer breaks and when they are turning their thoughts to the beach, they seem to turn off property. Sellers who come to market at this time of year have to price keenly to attract distracted buyers. In addition, sellers of higher value property often have the discretion to be able to delay marketing. Both of these factors help to reduce average asking prices for newly – marketed properties , but this can be an opportunity for buyers to find a deal.”
While the price of newly-marketed property is fairly stagnant overall, with an average year-on-year rise of just 1.6%, it is the more easterly boroughs that tend to be performing better. Hackney leads the way with an 8.9% annual uplift. Other notable risers in the East are Redbridge (+7.7%), Bexley (+5.7%), Greenwich (+5.7%), Newham (+5.1%) and Havering (+3.4%).
Shipside notes: “With an average price of £686,663, Hackney is not a cheap borough, but perhaps for families looking for an inner London home it still offers value compared to properties in some of the much pricier boroughs equally close to the centre. It offers commuting convenience, and with the opening of Crossrail within the next year a host of other boroughs will have their journey times cut. We know that commutability has a large effect on prices in the capital, and these figures bear this out. In time – honoured fashion, buyers are paying more for a quicker and more convenient journey to work.”« Back to Latest News « Back to Market Opinion