London house prices:Bexley overtakes Barking and Dagenham as the cheapest borough

Barking and Dagenham loses cheapest borough title after months of record growth.

Until this month, Barking and Dagenham, on the eastern fringes of the capital, was the borough with the lowest average house prices in London.

However, thanks to record price growth in the last 12 months, the average price of a home has risen 14.5 per cent to £319,916, almost £800 more than Bexley, across the Thames, which now claims the cheapest borough crown.

The latest Land Registry figures report price growth across the capital, with the most affordable areas having the highest rises. Out of the 33 boroughs, only 11 still have average prices of under £400,000, with more than half of these in the top 10 fastest-rising boroughs.

 

Hillingdon, in west London, is the top performing borough, rising 15.5 per cent to £383,960. This is largely due to the Crossrail effect, with the borough set to gain two stations on the high-speed rail route, significantly cutting journey times into the centre of London from West Drayton and Hayes & Harlington.

Enfield, in north London, and in travel Zone 5, is second on the list, with 15.2 per cent growth and average prices of £372,869.

“Outer London will continue to be the best bet for those with smaller budgets over the next few years," predicts Johnny Morris, head of research at estate agent Hamptons International.

"By the time Crossrail opens in 2018, cutting many journey times in half, the line between central London and the suburbs will be more blurred than ever before."

Meanwhile, Lewisham, in Zone 3 in the south-east, is showing similar growth, but has significantly higher house prices, with an average of £447,291. This is thanks to strong interest in popular areas such as Blackheath, Brockley and New Cross. Further investment by the council and plans for new homes suggest that this growth is likely to continue.

John Willcock, head of mortgages at Post Office Money, said: “Forecasts seem to indicate a year of two halves in 2016, with prices pushed up before April as buyers races to beat the new stamp duty surcharge on second homes, but then weakening following its introduction and uncertainty around the UK’s position in Europe.

“In the medium term, house prices look likely to continue to rise as demand for property continues to outstrip the supply of new homes.”

 

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