South-East London Enjoys Strongest Post-Crisis Growth
Analysis from Knight Frank shows average property prices in south-east London have grown faster than anywhere else in the Capital since their previous market peak; with values now well above the levels seen before the financial crisis.
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Eight of the ten districts that have seen the strongest price growth since their previous peaks fall within easterly or south-easterly postcodes. Herne Hill has seen the strongest performance in London, with prices rising 59.8% from their peak in Q1 2008 to Q2 2016.
The results are a strong indication of the fundamental change taking place in south-east London. The population of London is forecast to grow by more than 100,000 every year for the next decade and as demand for residential property rises, it is rippling outwards but also gravitating towards the south-east in the search for what has traditionally been a more affordable part of London.
This trend was highlighted last year, when Knight Frank highlighted how Dulwich has benefitted from these deeper-seated changes in the London market. Based on repeat sales data, house price growth in Dulwich of was 897%, stronger than anywhere else in the UK since Land Registry records began in 1995 and the equivalent of 12% per year for two decades.
Tom Bill, Knight Frank's head of London residential research, comments:
“It may surprise some to know that house prices in parts of south-east London have grown by more than prime central London since 2008. While the safe-haven appeal of prime central London meant prices grew strongly after the financial crisis, the regulatory landscape has since got tougher and growth of 32.7% is exceeded by areas that include Herne Hill and Brockley. It is a similar story in other more affordable areas of east and north London, where strong demand has rippled outwards and, in many cases, driven a wider regeneration story.”
Paul Humphreys, Head of Knight Frank Dulwich Village, comments:
“It is no surprise to us that Herne Hill tops the list of best performers in the Capital, especially given the wider context of the recent transformation of south-east London. Demand for prime London property has dispersed over the last few years and this ‘ripple effect’ has meant that families looking for green, open spaces, large houses, good transport links and excellent schooling have flocked to the Dulwich area, and specifically Herne Hill.
“People that move to Herne Hill do so for the long term, especially as one of the major attractions is the schooling. This may help to explain why the area’s growth has been so robust: it feels less transitory and families tend to upsize and downsize within the area, so demand remains high.”