"Over the last decade, London house prices have remained largely stable, and we’ve seen the capital’s peripheral boroughs perform particularly well, as buyers priced out of more central locations look for the next best option within a commutable distance"
- Marc von Grundherr - Benham and Reeves
New research by Benham and Reeves reveals that Barking and Dagenham led the charge with an average annual price rise of 5.9%, followed closely by Havering (5.7%), Bexley (5.6%) and Redbridge (5.4%). These areas remain some of the most affordable in the capital, yet they’ve delivered the strongest long-term returns, reflecting steady buyer demand and increasing desirability.
In contrast, London’s prime postcodes have struggled. Kensington and Chelsea saw average annual price drops of -1.5%, with Westminster (-1.2%) and Hammersmith and Fulham (-0.4%) also in decline — dragged down by factors like Brexit, tax changes and overseas investment shifts.
London-wide, prices have risen by an average of just 2.8% annually, compared to 5.3% across the UK, with inner London volatility pulling the average down.
While price growth hasn’t been uniform, the trend is clear: over the last decade, London’s best-performing housing markets have been in its more affordable outer boroughs — not its traditional prime hotspots.
Director of Benham and Reeves, Marc von Grundherr, commented: “Over the last decade, London house prices have remained largely stable, and we’ve seen the capital’s peripheral boroughs perform particularly well, as buyers priced out of more central locations look for the next best option within a commutable distance, whilst also looking for larger, family-suitable homes - a trend that intensified considerably during the pandemic.
“Despite the decline seen across Prime London boroughs, London remains an extremely desirable destination where international buyers are concerned and, if anything, the cooling market conditions of the last 10 years make it all the more attractive given the savings on offer.
“However, high taxes for overseas investors and the ongoing crackdown on non-doms could dampen the appetite of international investors and, as they play such a pivotal role in stimulating the market, we would like to see more done to attract them, not deter them.”
