Outer boroughs drive London’s property price growth

Property values in London rose 11.8% in 2014 despite price growth decelerating in central areas.

Letting signs
Rise in value of homes in central London decelerates,

And fresh research reveals the number of homeowners who believe the next 12 months will be a good time to sell is at its highest level for four years.

According to the Halifax confidence tracker, 59 think now is a good time to sell a home, while 26% believe it is not.

The mortgage lender’s findings follow the release of data by residential property market specialist Hometrack that shows the rise in property values in the capital was driven by increases in the outer boroughs.

Values in Newham grew 14.2%, Barking and Dagenham 12.5%, Greenwich 12.4% and Croydon 12.1%.

However, Kensington and Chelsea and Hammersmith and Fulham have seen price growth decelerate to 3.4% and 5.1% respectively over the past year amid political uncertainty, the threat of a mansion tax and a rise in stamp duty for homes worth over £925,000.

Hometrack’s figures also shows prices across all London boroughs remain way above the average cost of a home in any other UK city.

The average price in Newham is now £276,887 – a third lower than the London average but almost 50% higher than the UK average.