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First-time Buyer

London house prices up 490% in 20 years

Joanna Faith
Written By:
Posted:
30/05/2017
Updated:
30/05/2017

Property prices in the capital have risen by a staggering 489% in the last two decades and are still increasing, new analysis reveals.

In February 1997, the average house price in London was £107,829. Twenty years later, that number had shot up to £638,368, according to estate agent Portico.

Of all the London boroughs, average prices have risen fastest in City of Westminster where they’ve rocketed by 784% in the past two decades from £200,169 in February 1997 to £1.7m in February this year.

Second is Hackney in east London, where property prices have grown by 679% from £75,210 to £585,848.

However, recent Land Registry figures show not all London boroughs are enjoying a price boom.

Despite average prices in January increasing 4.6% year-on-year across the London boroughs, eight out of the 33 boroughs saw house prices decrease – Brent, Camden, City of London, Hounslow, Kensington and Chelsea, Redbridge, Richmond upon Thames and Southwark.

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Outer London house prices, on the other hand, continue to rise.

Property prices in Barking and Dagenham experienced a healthy 13.23% price growth in the 12 months to February 2017.

Other outer boroughs witnessing strong year-on-year growth include Croydon (12.54%), Merton (12.23%), Newham (11.35%) and Haringey (11.33%).

“As London has proven in the past when it bounced back from the recession, it’s an extremely resilient city, so if you are buying with a medium to long-term view then your investment as a business or home is safe,” said Mark Lawrinson, regional director of Portico.