Dulwich is the capital's top spot for house price growth with a record 863 per cent rise over two decades

Large family houses in Dulwich cost £81,500 on average 20 years ago. Today they sell for £750,000...
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The south-east London enclave of Dulwich has emerged as the capital's top spot for house price growth, after recording an increase of 863 per cent over the past 20 years, a new report by estate agent Knight Frank reveals.

In 1995, the average cost of a flat in Dulwich was £58,000, compared to today's average asking price of £415,000. And large family houses that could be bought for £81,500 back then rarely sell now for much under £750,000.

Local house prices have shot up by 53 per cent in the last three years alone, thanks to the neighbourhood's impressive transport links to key London stations, including nine-minute train journeys to Victoria and 22-minute journeys to King's Cross from Herne Hill, with regular services to London Bridge (17 minutes) from North Dulwich and East Dulwich stations. The London Overground station that opened at Honor Oak Park in 2011 has made getting to Canary Wharf easy, too.

These quick commutes have put Dulwich and other south-east London postcodes - which dominate the top 10 list revealed below - on the map for families who are also looking for good schools, spacious houses and lots of green, open space. 


"Dulwich has the strongest track record for house price growth in London and some of the best schools in the country. Against the background of the wider transformation of south-east London, it is exceptionally well-positioned to benefit as the property market in the capital evolves," says Knight Frank's head of London residential research, Tom Bill.

Nevertheless, with prices starting from £600 per square foot, Dulwich still offers better value than more established areas on the border of Zones 2/3, such as Chiswick and Barnes in west London, where prices start from £800 per square foot.  As prime property prices in these areas soar, Dulwich's popularity is peaking, driven by London families who are forced to look further afield. 

The area offers something for everybody. East Dulwich is the trendy part with artisan bakeries and sushi restaurants, while Dulwich Village is as picturesque as it sounds - home to Dulwich Park and the well-known Dulwich Picture Gallery. West Dulwich offers big, detached period houses that become more densely packed as you head out towards Herne Hill.

Office manager Sophie England has lived in the area for six years, having moved from Clapham with her husband, a teacher at Dulwich College, to start a family. "We're the typical migrators," she says. "It has a very village-y feel but is so well connected and there's lots of open space. It's ideal."

Average property prices in Dulwich:
One-bedroom flat: £352,615
Two-bedroom flat: £457,634
Two-bedroom house: £662,879
Three-bedroom house: £793,850
Four-bedroom house: £1,118,258
Source: www.rightmove.co.uk

Recently, there's also been interest from north Londoners aiming to move south. "This week I've already had three enquiries from people living in Islington - couples looking to put down more permanent roots before starting their families", says Laura Richardson, a negotiator at Knight Frank in Dulwich Village. 

The Victorian and Edwardian houses in Dulwich are wider than the Georgian homes more typical in Islington. "The basement trend hasn't really hit here yet," says Richardson. "People tend to build up into the loft."

This could also be because the Dulwich Estate has closely managed a huge section of the district - covering 1,500 acres - for 400 years. Strict planning rules, including keeping at least 50 per cent of your front garden for plants, has maintained a leafy feel.

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