New London hotspots emerge as the centre is ‘burnt out’
A new wave of hotspots has emerged in formerly unfashionable outer suburbs of the capital, as parts of Prime Central London have burnt themselves out, says Garrington Property Finders.
The buying agents said the new hotspots are east of the city, where formerly overlooked boroughs are now in the midst of a full-scale boom.
Havering, which has seen average prices rise by a relatively modest 79% since 2009, posted massive price growth of 18% last year. Barking and Dagenham, which also clocked 18% price growth in 2016, saw transactions fall by just 10%, the smallest decline in London.
While transactions fell across the capital in 2016, the drop-off was sharpest in areas that had previously seen some of the most frenzied activity. Hackney – where average property prices have risen an extraordinary 117% since the start of 2009 – saw sales collapse by more than a third (37%) last year.
In the City of London, where average prices have doubled (106% increase) since 2009, transactions nearly halved in 2016 (46% fall) and prices slipped by 9% on their 2015 levels.
Jonathan Hopper, managing director of the firm, said: “The Prime Central London property market endured a tough 2016, with sales falling by 18% on the previous year, and price growth either reducing or slipping into reverse.
“By contrast prices rose strongly in several outer boroughs, especially in the East. Havering in particular is enjoying a surge in interest among both investment buyers and those looking for a home, after it was revealed that the new Elizabeth line will cut the journey time from Romford to central London to barely 30 minutes.
“There are several factors behind this shift in momentum. The punitive levels of stamp duty introduced on high-value properties at the end of 2014 had a long-term chilling effect on Prime Central London, and Brexit uncertainty has further hampered buyer sentiment.”