Prices in London have recovered most strongly from the global financial crisis, according to research from Benham and Reeves.

The lettings and estate agent found that typical prices in the City of London are 89% higher than the pre-crisis peak of August 2007, rising from £474,000 to £898,000 in September 2019.

Other areas where the cost of property has soared over the same period are Hackney (88%), Waltham Forest (83%) and Lewisham (83%).

Outside of London, prices in Cambridge increased the most between August 2007 and September 2019, by 66% from £275,000 to £456,000.

Other areas to have bounced back strongly from the credit crunch and global recession include Slough (61%), Hertsmere (60%) and Welwyn Hatfield (59%).

Most of the highest performing areas are in South East of England, although the Shetland Islands in Scotland are an exception, rising by (61%) from £105,000 to £169,000.

Not back to peak

In Northern Ireland house prices have still not made it back to their 2007 peak, with the typical property price still 38% below its average in August 2007, falling from £224,670 to £139,951.

The recovery has also been modest in Scotland (8%) and Wales (9%) compared to England (29%),

For the UK as a whole, prices have risen by 23% over the period.

Director of Benham and Reeves, Marc von Grundherr, said: “Despite the recent negative headlines about the London housing market, the capital has made the strongest recovery from the global financial crisis and continues to do so despite wider market uncertainty.

“This recovery also seems to extend to other parts of the South East of England and while these more inflated areas may have seen a drop in the rate of price growth of late, they remain the most durable on a long-term basis.

“Proof, if it was ever needed, that the UK property market is far tougher than many give it credit for and any momentary blip caused by the current landscape will leave no lasting damage.”