Outer London is expected to provide the buy to let hotspots for 2017 investment, while Central London slows down.
Many Central London areas such as Kensington and Chelsea have seen property prices surge by over 100 per cent over the last eight years, leaving outer London boroughs behind.
However, it is now felt that property values may have topped out in the centre, with property prices in Chelsea now more than 38 times the average national wage.
With property prices in the central borough now out of reach for most buyers, values have struggled to hold, with some prices in Prime Central London seeing price drops of up to 13 per cent over the last year.
In contrast, some outer London areas, in particular on the eastern side of the capital, have seen strong growth in the last 12 months, and still have further to go.
Outer London areas such as Havering, Barking and Bexley have seen strong price growth recently and are predicted to continue in the same vein.
Top boroughs for predicted property price growth in 2017 | ||
Borough | Price growth since 2009 | Annual price growth |
Havering | 79 per cent | 18 per cent |
Barking & Dagenham | 94 per cent | 18 per cent |
Sutton | 85 per cent | 13 per cent |
Redbridge | 83 per cent | 11 per cent |
Bexley | 84 per cent | 17 per cent |
Croydon | 86 per cent | 15 per cent |
Bromley | 79 per cent | 8 per cent |
Managing director of Garrington Property Finders, Jonathan Hopper, commented: ‘The prime central London property market endured a tough 2016, with sales falling by 18 per cent on the previous year, and price growth either reducing or slipping into reverse.
‘By contrast prices rose strongly in several outer boroughs, especially in the east. Havering in particular is enjoying a surge in interest among both investment buyers and those looking for a home, after it was revealed that the new Elizabeth line will cut the journey time from Romford to central London to barely 30 minutes.’
