Average house prices in over half of London neighbourhoods are now £500,000 or more

Emma Haslett
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House Prices Hit New High In The UK
Tiny, cramped, Victorian terrace? That'll be 500,000 of your English pounds, please. (Source: Getty)

House prices have broached the £500,000 barrier across 51 per cent of London postcode districts, new research has found - backing up evidence the capital's homes are becoming increasingly unaffordable.

The report, by estate agent Stirling Ackroyd, found even areas such as Peckham, which were traditionally seen as pretty affordable, have now joined the half-a-million club, with average house prices of £503,000.

Streatham, Mile End and the East End's E1 district have also joined the club, as well as St Katherine's Docks.

Read more: George Osborne is playing a dangerous game with Help to Buy London

In fact, of the 157 postcode districts in England and Wales where the average house price is £500,000 or more, 142 are within Greater London.

There is some good news for London househunters - pockets of "affordability" exist in SE16 - Bermondsey and Rotherhithe - where the average house price is £476,600, as well as SE14 - New Cross and New Cross Gate - where property prices are £445,100.

And in the Isle of Dogs, Limehouse and Poplar, average prices are £449,800.

Meanwhile, in West London, average prices have topped £1m,, while in West Central London, prices are edging closer to £900,000.

Dartford is London's most affordable area, with average prices of £278,000, while in Romford homes cost around £281,000.

“London is increasingly another country," said Andrew Bridges, managing director of Stirling Ackroyd.

"Within these borders, more and more territory is being claimed by home values only dreamed of by sellers in the past. Meanwhile, for buyers and for businesses – the wave is building outwards and eastwards.

“They say the past is another country too – and that is definitely the case in the capital. Gone are the days of the traditional prejudices about certain postcodes. London is more diverse than ever, but the boundaries are shifting and blurring. Lawyers and bankers are just as likely to live in Hackney as they are to choose Fulham, while the offices of law firms and financial services start-ups are found as frequently in Shoreditch or the Southbank as they are in the City.”

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