House prices in the capital rise 59% since financial crisis

House prices in the capital rise 59% since financial crisis
Following the crisis, the growth in average prices in prime boroughs outpaced other areas in London by nearly double to create its own distinct market

According to the latest research from Lloyds Bank, house prices in London have recovered with a 59% increase from 2009 - rising from an average of £362,641 to £578,381 in 2016, compared to a growth of 31% for England and Wales.

The Lloyds data revealed that house prices in the City of London have doubled (100% increase) since 2009 to £908,759, closely followed by the borough of Waltham Forest which also had a significant increase of 97% to £433,105.

Tower Hamlets has performed the worst since the financial crisis, with average house prices increasing by 54% between 2009 and 2016. Even though this is below the overall increase for London, it is still a higher rate of growth compared to the rest of England and Wales (31%).

London's Outer boroughs now key growth areas in last 2 years

London's 'Prime boroughs' - City of London, Westminster and Kensington & Chelsea - led the road to recovery between 2009 and 2014 with an 80% increase in average house prices. Homes in the City of London nearly doubled in that period from £455,020 to £894,046 (97%), followed by Westminster (86%) and Kensington & Chelsea (74%). However, in the last two years house prices in these locations have seen little growth with prices in City of London and Westminster rising by only 2%.

In the last two years, the largest growth areas are from London's outer boroughs with an average growth of 19%, compared to 4% for prime boroughs and 12% for inner boroughs. Nine out of the top 10 growth areas over this same period are within Outer boroughs with an increase in house prices between 25% and 32%.


Newham and Barking & Dagenham, the two boroughs most impacted by the downturn, are now the areas which have seen the biggest increase in house prices in the last two years. Helped in part by the regeneration of this area as a result of the London 2012 Olympic Games, Newham has seen average house prices increase from £269,529 in 2014 to £356,638 in 2016, a rise of 32%, with Barking and Dagenham also reporting a rise of 32% to £285,129.

Andy Mason, mortgage director at Lloyds Bank, commented: “The financial crisis saw average house prices in London generally remain stable during 2007 and 2009. Following the crisis, the growth in average prices in prime boroughs outpaced other areas in London by nearly double to create its own distinct market.

More recently, our analysis is showing house price growth in Outer London boroughs is increasing at a greater pace than Inner London boroughs. Average house prices in the most expensive areas are starting to flatten, whereas London's most affordable areas are showing healthy growth. A possible explanation for this is the ongoing legacy from the 2012 Olympic Games and that outer borough areas like Newham will benefit from the Crossrail link to the City due for completion at the end of 2019.”

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris
Chris 30 Aug 2017

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Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

It depends on the people, some older adults decide to make a long-distance move in order to live closer to their children or settle in a place with a lower cost of living.

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brandonlee10 24 Jul 2017

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IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

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IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

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cornishalan
cornishalan 10 Jul 2017

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