Despite talk of the property market slowing down post-Brexit and concerns over house prices stagnating or even falling, the latest data from the ONS paints an altogether rosier picture.
Against expectations, house prices across the UK have increased by 7.7% in the last 12 months. This now means the average national asking price stands at £218,000, in spite of the uncertainty before and after the Brexit vote and the changes to stamp duty introduced in April.
All of the house price data and official housing figures since Brexit have shown price growth remaining robust and resilient, although it is also the case that fewer properties are being sold.
While many property experts predicted slower house price growth in 2016, it has proved to be especially resilient, despite all the variables and external pressures.
Where, though, are the biggest house price rises being seen? Well, as you might expect, the east of England, London and the South East dominate when it comes to the most impressive house price growth.
House price growth in London has remained very solid in the 12 months to September, rising by 10.9%. The average asking price in the capital is now £487,000, over double that of the national average. It’s often said that London operates on a whole different level to the rest of the country, and that’s never truer than when it comes to house prices and property.
Still, it’s the more affordable parts of London that are seeing the biggest price rises. Demand for homes in East London, in particular, is on the up, because decent-sized abodes for relatively affordable prices can still be sourced here. With buyers finding it more and more difficult to acquire homes centrally, it is the outer edges and suburbs of the capital that are benefitting.
The London borough of Newham, which covers Stratford, West Ham, East Ham, Plaistow, Beckton, North Woolwich, Excel/Docklands and Silvertown, is typically seen as one of the most affordable boroughs in the capital. Sellers, however, will be pleased to see that prices have risen here by approximately 20% in the past year. The average asking price now sits at a healthy £371,000.
Similarly, the London borough of Barking and Dagenham has seen prices rise by 19.3% in the last 12 months, reaching an average asking price of £290,000. With excellent transport links (thanks to the Overground and the District Line), good local schools and ample green space, it’s easy to see why buyers are being drawn to areas like Barking and Dagenham.
By contrast, boroughs in more central locations – such as Camden and the City of Westminster – have seen prices fall in the last year, by 2.4% and 1.1% respectively.
This ripple effect – where buyers move eastwards for more affordable housing and a slower pace of life – is growing year by year, with an increasing number of buyers priced out of central London.
What the ONS data shows above all else, though, is that the property market is still getting on with business much as it was before, impervious to political and economic uncertainty.
At Outlook Property, we will do all we can to help you get your home sold for the best possible price. We have a number of different branches in East London, spanning from Docklands and Stratford to Leyton and Walthamstow.
To find out how much your property could be worth in the current marketplace, please request a free instant online valuation.