London house prices: These are the parts of London where house prices have grown the most since the financial crisis

 
Helen Cahill
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There were two stages to the UK house price recovery following the crash (Source: Getty)

Since the financial crisis, house prices have grown faster in affordable parts of London than they have in Fulham and Mayfair.

New analysis shows that while house prices jumped in the sought-after neighbourhoods of central London immediately following the 2008 crash, more affordable parts of the capital have since become growth hot spots.

Read more: UK house prices: First quarterly fall since 2012 as annual growth stagnates

According to Hometrack, house prices in Walthamstow have jumped 133 per cent since 2009, making it the London area with the highest house price inflation over that period.

Meanwhile, prices in prime areas such as Hampstead, Mayfair and Islington have grown by 87 per cent, 88 per cent and 89 per cent respectively.

Area

Postcode

House price inflation between 2009 and 2017 (%)

Walthamstow

E17

133.2 per cent

Clapton

E5

133.1 per cent

Peckham

SE15

129.9 per cent

Leyton

E10

128.4 per cent

South Hackney

E9

121.9 per cent

Richard Donnell, insight director at Hometrack, said: "As a global city, London's housing market covers a wide range of sub-markets with different drivers of demand."

Average values on London's high-end homes rocketed before 2012, in the early stages of the global recovery from the financial crisis, Donnell said. This was due to investment from wealthy overseas buyers who regarded London property as a safe haven.

Read more: House prices have gone off track along the Southen Rail route

Prices on middle-market London homes didn't start shooting up until 2013, when mortgages became more widely available and borrowing costs came down. This boosted housing demand in London's outer boroughs, and house price growth in these areas has now outstripped the growth recorded in central London immediately after the financial crash.

Now, house prices are growing eight per cent year-on-year in London's lower-value markets, while prices are falling five per cent year-on-year on London's most expensive homes. Price falls on high-end homes have been triggered by former chancellor George Osborne, who increased the rates of stamp duty on houses worth more than £1m.


House prices are now increasing fastest on London's most in-demand homes (Source: Hometrack)

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