The London boroughs showing the strongest annual price growth

London’s key Olympic boroughs are finally coming into their own on property prices, outperforming some of the capital’s most expensive postcodes up to fourfold, according to a new report.
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Waltham Forest and Tower Hamlets, two of the Games host boroughs, top a new study which highlights areas of the capital showing the strongest increases in annual price growth year on year.


The study, by Savills, is based on the latest Land Registry data and shows prices in Waltham Forest grew only 4.6 per cent in the 12 months to June last year. In the 12 months that followed, however, they rocketed 28.1 per cent.

Annual growth in Tower Hamlets was up 17.9 per cent, while Newham, the main Olympic host borough, saw a 15 per cent increase in price growth. Hackney was also one of London’s top 10 performers with 13.5 per cent.

Right at the bottom of the table, Hounslow saw growth slow to just two per cent year on year, from six per cent last year to eight per cent by June this year, while prime London boroughs are also starting to plateau. Kensington and Chelsea, for example, saw growth of 9.8 per cent to June last year and 15.1 per cent to this June, an increase of 5.3 per cent, making it one of the worst performers.

The study was carried out by Sophie Chick, an associate in Savills’ residential research department. “The locations at the top of the table are those which have really started to take off in the last year,” she says. “They are mainly London’s lower-value locations and it’s probably a ripple effect out of more expensive areas.”
While today’s figures show that every borough saw stronger growth in the last year than in the 12 months before, it is worth pointing out that Land Registry figures are based on deals struck around six months ago.
Most recently, growth is slowing significantly in prime central London as the strong pound drives out overseas buyers while Londoners wait to see who wins the general election next year, fearing a mansion tax on properties worth more than £2 million.
Chick also believes growth is slowing in the mainstream market. “These areas do tend to depend on mortgage finance and the Mortgage Market Review has tightened rules on lending,” she said. “I don’t think we will see prices start to fall in the lower-priced areas, but I do think that growth will become more constrained, particularly if interest rates rise.”

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