Certain areas of central London have seen prices drop along with sale while certain boroughs such as Havering and Barking and Dagenham are experiencing a surge in buyers according to research.
The main market in central London has dropped dramatically following the introduction of changes to stamp duty and tax and this has forced wealthier buyers to turn their attention to the east. It has been identified that prices have grown along with sales volumes during 2016.
During 2016, transaction fell across London with those areas that were once moving at such a pace experiencing the most dramatic of changes. Hackney is a prime example as this was once a place that was extremely popular where prices have increased by 117% since 2009 but sales dropped by 37% in 2016.
The average price of property in the City of London has seen an increase of 106% in prices since 2009 although transaction numbers dropped by 46% and prices had fallen by 9%. Prices and sales also dropped in Kensington and Chelsea, an area that is popular with overseas buyers.
However, on the flip side of this, the boroughs on the east side of the city are now booming with Havering experiencing a rise of 79% in average price since 2009. Last year prices in the area rose by 18% and Barking and Dagenham also experienced the same increase in prices in 2016 although sales did fall by 10%, the smallest figure within the whole of London.
It was a tough year for the prime central London property market as sales fell by 19% when compared to the previous year while the growth in price also struggled. In contrast to this, prices in the outer boroughs proved that they are resilient as they increased. Investment buyers and home buyers shows a real interest in property in Havering following the revealing of the new Elizabeth line which will make the accessing the city centre even easier and faster.
There are many reasons for these changes and shift in interest with the introduction of increased stamp duty and Brexit causing high levels of uncertainty which then resulted in buyers losing interest.
However, for those wealthy buyers, the drop in price in the City along with Kensington and Chelsea means that it opens the door to opportunity, particularly from overseas buyers as they have the chance to benefit from a struggling Pound.
This has now resulted in a large number of outer suburbs experiencing a slower price growth since the fall in 2009 and so, property here offers excellent value and the potential of good increases in re-sale values. As these areas undergo regeneration and improved transport connections, they are now the areas that are attracting the real attention in 2017.