The “wealthiest” London borough in residential real estate terms is not, as might be expected, Westminster or Kensington & Chelsea… It’s Croydon. According to some sums by online estate agency eMoov, at least.
The firm totted up the total surface area (in square metres) of each London borough accounted for by domestic residential property and gardens, and the cost of property per square metre. Land usage stats come from The London Datastore, while PSM values have been sourced from London.Gov’s The Economic Evidence Base for London 2016.
There are, of course, some issues with this methodology; not counting more than one floor per property for one.
Anyway. Using these workings, the average price per square metre across London is £2,401, with the average “domestic residential surface area” across all boroughs reaching 16,229,094 square metres. This puts the average value of resi property wealth per boroughs at c.£28.3bn. At over £41.3bn, the total value of residential property in RBKC is substantially higher than the average across London, but places only sixth in the rankings.
Croydon emerges as having “the highest property wealth in the capital” with over £77.2bn across the borough. Property in Croydon goes for £2,150 a square metre and there’s a combined area of residential property and gardens of 35,920,000 square metres. Multiplying those two numbers together gives eMoov’s headline numbers, putting Croydon more than £20bn ahead of second-ranked Richmond-upon-Thames
|Local Authority Name||Total Area of Residential Buildings & Gardens (m2)||Price per m2 (£)||Total Value of Residential Property|
|Richmond upon Thames||15,456,000||£3,800||£58,732,800,000|
|Kensington and Chelsea||4,535,000||£9,110||£41,313,850,000|
|Kingston upon Thames||14,862,000||£2,280||£33,885,360,000|
|Hammersmith and Fulham||5,518,000||£5,680||£31,342,240,000|
|Barking and Dagenham||11,501,000||£800||£9,200,800,000|
Land use in London, 2015
For comparison, the value of the capital’s non-domestic property assets yield a different ranking – topped by Westminster.
|London Borough||Area of Non Domestic Buildings (m2)||Price per m2||Total Value of Commercial Property|
|Hammersmith and Fulham||1,747,000||£620||£1,083,140,000|
|Kensington and Chelsea||1,385,000||£740||£1,024,900,000|
|Kingston upon Thames||1,357,000||£620||£841,340,000|
|Richmond upon Thames||1,559,000||£490||£763,910,000|
|Barking and Dagenham||2,195,000||£250||£548,750,000|
Founder and CEO of eMoov.co.uk, Russell Quirk: “Kensington and Chelsea certainly rules the roost where the premium price tag and cost to individual home buyers are concerned, but as this research shows, it isn’t the wealthiest in terms of the sheer quantity of the property assets located across the borough.
When taking into account the size of each borough’s property portfolio it provides an alternative look at which parts of London are home to the greatest accumulation of property wealth.
Of course, the outer boroughs of London dominate as these are the locations that allow a larger ground area to be allotted to a residential purpose, but it is the recent trend of homeowners forsaking the inner city and looking to these more affordable outer boroughs that have seen prices increase there, and in turn, push them up these rankings.”