With 2018 coming to an end, real estate services and investment firm CBRE has released the list of top performing boroughs in London’s property market fort this year. Haringey registered the highest rental growth while houses in Islington experienced the highest price growth.
There is no doubt that house prices softened in London this year, dropping to single digit growth from 2017. However, this was in line with the prediction, as Brexit impacted the house price growth in 2017-18. Nevertheless, house price growth continues to remain steady without falling into the negative territory. Demand momentum ensured that house price growth was positive throughout the year.
Last year, Camden had the highest growth at 13 per cent, this year growth in the top performing borough was at 7 per cent (Islington). The 10 highest priced boroughs remain the same as last year, although Hackney and Haringey have swapped places at 9 and 10.
Redbridge and Richmond upon Thames registered 5.7 per cent growth in house prices followed by Southwark (5.6 per cent), Merton (5.4 per cent), Newham (5 per cent), Ealing, Brent, and Hackney (all 4.5 per cent) and Kingston upon Thames (4.2 per cent).
However, the list of London boroughs changes when highest house price is taken into consideration. Houses in Chelsea still continued to command the highest price at £1,349791; Westminster (£957,062); Camden (£846,663); City of London (£761,722); Hammersmith & Fulham (£734,254); Richmond upon Thames (£688,578); Islington (£680,810); Wandsworth (£610,48); Hackney (£583,331) and Haringey (£550,415).
In terms of rental growth, it was 7 per cent in Haringey along with Kensington & Chelsea. They were closely followed by City of London (6.9 per cent); Westminster (6.1 per cent); Hammersmith & Fulham (5.7 per cent); Tower Hamlets (5.1 per cent); Lambeth & Barnet (4.9 per cent); Hounslow (4.4 per cent) and Wandsworth (3.9 per cent).
For the fourth year running, the City of London, Kensington and Chelsea, and Westminster remain the boroughs with the highest rents, all in excess of £3,000 pcm. The average rent in the City of London was £3,707; Kensington and Chelsea (£3,554); Westminster (3,518); Camden (£2,679); Hammersmith & Fulham (£2,300); Lambeth (£2,185); Tower Hamlets (£2,173); Islington (£2,082); Hackney (£2,065) and Wandsworth (£2,014).
These statistics reveal that London property market is still an attractive destination for investments, especially buy-to-let homes, as rental growth is high. If you are interested in investing in a buy-to-let property in London, Strawberry Star can assist you in identifying a suitable property. Connect with any of our estate agents for details by calling our London office.