We keep calm and carry on – how London property prices fared in 2011

The good news for the new year is that research shows homes in at least half of London’s boroughs managed to hold their prices in 2011.
Houses in Islington
© Barry Phillips
The smart terraces of Islington saw prices rise by 15 per cent this year
And, despite all the talk of a looming double dip recession, a lucky few have even enjoyed above- inflation price rises.

According to research from estate agents Knight Frank, based on Land Registry data, the average property in the capital now costs £340,308 — compared with £339,263 a year ago. That compares with an average three per cent drop in values across the UK.

Only Islington enjoyed price rises in the double figures so far this year, up by 15 per cent. But across London price rises are not confined exclusively to top end boroughs.

Hammersmith and Fulham and Kensington and Chelsea both enjoyed nine per cent price rises. Westminster, Redbridge and Hillingdon all tied on four per cent. And Brent saw price rises of three per cent, as did Lambeth, Richmond and Merton.

The worst performer was Kingston-upon-Thames, down ten per cent, followed by Haringey, down nine per cent, and Havering and Hounslow, both down seven per cent.

Liam Bailey, head of residential research at Knight Frank, said: "The obvious point is that central locations are generally doing better than outer locations, but most locations are still outperforming the rest of England and Wales."

Bailey suggested that the strength of the superprime central London market was having a knock on effect on neighbouring areas, like Islington and Hammersmith and Fulham, as buyers priced out of the absolute top end postcodes are now looking to their neighbours.

But as 2012 fast approaches, the much-hyped "Olympic bounce" on prices in the host boroughs has failed to materialise. "Inner east London boroughs, like Newham, down four per cent, and Waltham Forest, down three per cent, don’t seem to be doing very well," said Bailey.

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