House prices 2018: east London property market outstrips rest of the capital

Home owners in the east London borough of Redbridge have seen house prices shoot up at more than double the pace of any other London borough over the past year.

Prices in the borough, which stretches from Ilford to Hainault, have risen more than £35,000 to an average of £442,000, representing 8.9 per cent growth, according to latest figures from the Land Registry.

The rises are in contrast to the overall London picture, which has experienced year-on-year price falls for the first time since the 2009 recession.

The average home in the capital sold for one per cent less than it did this time last year, with current average prices of £472,000 representing falls of nearly £5,000.

REDBRIDGE

A major factor in Redbridge's growth is the high-speed east-west train network Crossrail, which is due to open at the end of the year.

The Elizabeth line will have four stops in the borough at Ilford, Seven Kings, Goodmayes and Chadwell Heath.

Ilford and Seven Kings especially are seeing significant regeneration linked to the new infrastructure, increasing property prices and demand for homes.

"Ilford and the surrounding areas didn’t experience the same huge gains over the last five years we saw across the rest of the capital," says Bernard Loughran, sales manager at Ilford Reeds Rains.

"Now people are realising you can buy a whole house in the area for £500,000, whereas in other parts of London you can only buy a one- or two-bedroom flat for this price."

As well as the good transport links — many areas are also on the Central line — the area is renowned for its good state and grammar schools, attracting families and making it an aspirational area.

Richard Harman, associate at Hetheringtons in South Woodford, says this appeals to the buyers who have made their money in the price booms seen in Hoxton and Shoreditch, and are now looking to move further out.

Thanks to this, family homes are selling at a premium.

Wanstead Village, with its farmers' market and independent boutiques, is a popular location, as is South Woodford, which offers a good high street, pubs and a mixture of Georgian and Victorian houses.

FASTEST RISING BOROUGHS

The second and third fastest rising areas are Redbridge's neighbouring boroughs, Barking and Dagenham and Havering.

Barking and Dagenham has seen 4.4 per cent growth, with average prices rising £12,000 to £293,000 over the course of the year. As London's cheapest borough, it's the only area where sold prices are averaging under £300,000.

Average rises of 4.2 per cent in Havering have taken prices from £354,000 to £369,000 over the same period. It will be home to three Crossrail stations, Romford, Gidea Park and Harold Wood.

Bexley, in south-east London, has experienced price growth of 4.1 per cent, with homes selling for an average of £342,000.

This again can be linked to the forthcoming Elizabeth line and associated regeneration, with the new station due to open at Abbey Wood.

PRICE FALLS

More than half of London boroughs have seen their average prices fall over the past 12 months, with the largest drop of 7.9 per cent in east London's Tower Hamlets.

Central London estate agent and NAEA board member Jonathan Hudson attributes the drop in prices to the stamp duty changes and political uncertainty affecting the central London property market, and points out that this uncertainty has yet to affect the cheaper outer London boroughs as severely.

Property experts predict continued subdued house price growth across the capital and rest of the UK this year.