The average London home now costs just under £500 per sq ft, according to new data – a rise of more than 50 per cent in five years.
The figures by Zoopla suggest the average London home now sets buyers back £496 per sq ft, up from £321 in 2012.
Newham, which includes Stratford, was the fastest riser with prices jumping from £227 per sq ft in 2012 to £422 this year – an 86 per cent rise.
That was followed by Waltham Forest, with an 84 per cent rise, and Barking and Dagenham, where prices have risen 73 per cent since 2012. Lewisham and Greenwich make up the rest of the top five.
London's fastest-growing boroughs
|Borough||2017 price per sq ft||2012 price per sq ft (£)||Change|
|3||Barking and Dagenham||£344||£199||73%|
Outside London, Slough is the area with the highest growth, with prices jumping by 64 per cent in the past five years, from £229 per sq ft to £374 per sq ft. That's followed by Stevenage, with a 59 per cent rise, and Welwyn Hatfield, with a 57 per cent rise.
If you're in the market for a bargain, head to Wales: four of the cheapest local authorities made up the bottom 10 of the ranking. Blaenau Gwent, right next to the Brecon Beacons, was named the cheapest area, with house prices averaging out at £79 per sq ft. Burnley came second, at £87 per sq ft, while East Ayrshire came third, at £91 per sq ft.
“The home counties have performed very well since 2012 in addition to some London boroughs, such as Newham and Waltham Forest, which have seen increases of over 80 per cent per square foot," said Lawrence
"This is no doubt in part due to the significant investment regenerating the area for the London Olympics. However, if you’re looking to maximise the amount of space possible on a budget, you should look to the Midlands and North to ensure best value for money.”
The news came on the same day separate data showed UK house prices hit their highest on record in September, rising to over £225,000.
The Halifax house price index showed prices are being pushed up by an ongoing shortage of properties for sale and solid growth in full-time employment.
The UK's cheapest areas
|Area||2017 price per sq ft||2012 price per sq ft||Change|
|6||Neath Port Talbot||£97||£89||9%|
|7||Na h-Eileanan an Iar||£97||£85||14%|
|8||Rhondda Cynon Taf||£98||£88||11%|