The average property value in London has risen by 59% since the crash – Lloyds

House price inflation since 2009 has been nearly twice as fast in the capital compared to the wider country

London’s rate of house price growth has significantly out-paced that in the wider country since 2009: While prices in the capital have jumped by 59% (from £362,641 in 2009 to £578,381 in 2016), the average value in England & Wales has risen by 31%.

The average property price in London has risen by 59% since 2009, according to some research by Lloyds Bank. But while prime boroughs led the recovery after the global financial crisis, it’s outer boroughs that have seen the fastest house price inflation in the last two years.

London’s Prime boroughs – City of London, Westminster and Kensington & Chelsea – led the road to recovery between 2009 and 2014 with an 80% increase in average house prices. Homes in the City of London nearly doubled in that period from £455,020 to £894,046 (97%), followed by Westminster (86%) and Kensington & Chelsea (74%). In the last two years, however, house prices in these locations have seen little growth with prices in City of London and Westminster rising by only 2%.

In the last two years, the largest growth areas are from London’s outer boroughs with an average growth of 19%, compared to 4% for prime boroughs1 and 12% for inner boroughs. Nine out of the top 10 growth areas over this same period are within Outer boroughs with an increase in house prices between 25% and 32%.

The City of London and Waltham Forest have seen the biggest price rises of any borough: 100% (to £908,759) and 97% (to £433,105) respectively. Tower Hamlets has fared the worst of the capital’s boroughs since the financial crisis, with average house prices increasing by 54% between 2009 and 2016. Even though this is below the overall increase for London, it is still a higher rate of growth compared to the rest of England and Wales (31%).

Newham and Barking & Dagenham, the two boroughs most impacted by the downturn, are now the areas which have seen the biggest increase in house prices in the last two years. Helped in part by the regeneration of this area as a result of the London 2012 Olympic Games, Newham has seen average house prices increase from £269,529 in 2014 to £356,638 in 2016, a rise of 32%, with Barking and Dagenham also reporting a rise of 32% to £285,129.

Andy Mason, mortgage director at Lloyds Bank: “The financial crisis saw average house prices in London generally remain stable during 2007 and 2009. Following the crisis, the growth in average prices in prime boroughs outpaced other areas in London by nearly double to create its own distinct market.

“More recently, our analysis is showing house price growth in Outer London boroughs is increasing at a greater pace than Inner London boroughs. Average house prices in the most expensive areas are starting to flatten, whereas London’s most affordable areas are showing healthy growth. A possible explanation for this is the ongoing legacy from the 2012 Olympic Games and that outer borough areas like Newham will benefit from the Crossrail link to the City due for completion at the end of 2019.”

London’s best performing local authority districts, 2009-2016

Local Authority District Average Average House Price House Price 2009 2016 Change £ Change %
City of London 455,020 908,759 453,739 100%
Waltham Forest 220,298 433,105 212,807 97%
Hackney 314,144 606,269 292,125 93%
Westminster 741,299 1,424,388 683,089 92%
Southwark 338,262 636,040 297,779 88%
Lewisham 239,459 439,811 200,351 84%
Islington 414,829 753,673 338,843 82%
Haringey 350,522 622,944 272,422 78%
Kensington and Chelsea 1,046,104 1,857,287 811,183 78%
Lambeth 336,584 593,542 256,958 76%
Camden 599,335 1,056,705 457,370 76%
Harrow 291,078 507,698 216,620 74%
Hillingdon 255,523 443,599 188,076 74%
Newham 206,004 356,638 150,634 73%
Barking and Dagenham 166,432 285,129 118,697 71%
Brent 322,303 549,704 227,402 71%
Merton 359,367 606,295 246,928 69%
Kingston upon Thames 328,578 552,473 223,895 68%
Enfield 266,891 446,322 179,432 67%
Ealing 329,483 549,489 220,005 67%
Redbridge 255,885 425,028 169,143 66%
Wandsworth 460,055 758,034 297,980 65%
Hammersmith and Fulham 556,678 914,478 357,800 64%
Bexley 209,576 343,093 133,517 64%
Greenwich 265,005 433,742 168,738 64%
Sutton 239,760 392,297 152,537 64%
Croydon 233,153 377,257 144,104 62%
Havering 225,933 359,895 133,963 59%
Bromley 302,581 481,733 179,152 59%
Richmond upon Thames 507,773 797,959 290,186 57%
Hounslow 314,988 492,561 177,574 56%
Barnet 382,630 595,756 213,127 56%
Tower Hamlets 334,172 513,092 178,920 54%
Prime London 855,061 1,593,913 738,852 86%
Inner London 382,670 619,956 237,287 62%
Outer London 296,936 486,043 189,107 64%
London 362,641 578,381 215,741 59%
England & Wales 213,215 278,750 65,535 31%

London’s local authority districts recovery, 2009-2014, 2014-2016

Local Authority District Average House Price 2009 Average House Price 2014 Average House Price 2016 Change 2009 to 2014 % Change 2014 to 2016 %
Newham 206,004 269,529 356,638 31% 32%
Barking and Dagenham 166,432 215,793 285,129 30% 32%
Waltham Forest 220,298 334,272 433,105 52% 30%
Enfield 266,891 350,007 446,322 31% 28%
Hillingdon 255,523 348,332 443,599 36% 27%
Bexley 209,576 270,092 343,093 29% 27%
Havering 225,933 284,256 359,895 26% 27%
Redbridge 255,885 338,679 425,028 32% 25%
Croydon 233,153 300,670 377,257 29% 25%
Southwark 338,262 518,221 636,040 53% 23%
Lewisham 239,459 361,154 439,811 51% 22%
Sutton 239,760 322,415 392,297 34% 22%
Bromley 302,581 397,445 481,733 31% 21%
Hackney 314,144 501,499 606,269 60% 21%
Harrow 291,078 427,361 507,698 47% 19%
Brent 322,303 468,787 549,704 45% 17%
Greenwich 265,005 369,973 433,742 40% 17%
Kingston upon Thames 328,578 475,079 552,473 45% 16%
Haringey 350,522 536,774 622,944 53% 16%
Tower Hamlets 334,172 444,899 513,092 33% 15%
Hounslow 314,988 427,295 492,561 36% 15%
Merton 359,367 537,926 606,295 50% 13%
Islington 414,829 669,625 753,673 61% 13%
Barnet 382,630 530,052 595,756 39% 12%
Wandsworth 460,055 681,439 758,034 48% 11%
Lambeth 336,584 537,866 593,542 60% 10%
Ealing 329,483 501,441 549,489 52% 10%
Camden 599,335 966,921 1,056,705 61% 9%
Richmond upon Thames 507,773 730,744 797,959 44% 9%
Hammersmith and Fulham 556,678 880,119 914,478 58% 4%
Westminster 741,299 1,380,783 1,424,388 86% 3%
Kensington and Chelsea 1,046,104 1,822,709 1,857,287 74% 2%
City of London 455,020 894,046 908,759 96% 2%
Prime London 855,061 1,537,476 1,593,913 80% 4%
Inner London 382,670 551,331 619,956 44% 12%
Outer London 296,936 408,808 486,043 38% 19%
London 362,641 519,135 578,381 43% 11%
England & Wales 213,215 259,979 278,750 22% 7%

N.B. Lloyds Bank’s London borough definitions:

  • Prime: Kensington & Chelsea, City of Westminster and City of London (not officially classed as a borough but included in this analysis).
  • Inner: Camden, Hackney, Hammersmith & Fulham, Islington, Lambeth, Lewisham, Southwark, Tower Hamlets and Wandsworth.
  • Outer: Barking & Dagenham, Barnet, Bexley, Brent, Bromley, Croydon, Ealing, Enfield, Greenwich, Haringey, Harrow, Havering, Hillingdon, Hounslow, Kingston upon Thames, Merton, Newham, Redbridge, Richmond upon Thames, Sutton and Waltham Forest.