Average London house price to hit £1 million by 2032
Average house prices in a third of London’s boroughs will hit the £1 million mark by 2032, new research suggests, as experts tip the up-and-coming areas set to boom.
The average home will cost £483,968 by the end of 2016, and is predicted to leap a massive £24,000 by the end of 2017, according to a 25-year forecast by JLL property consultants.
Owners in high-value Kensington & Chelsea will earn an extra £70,000 in equity over the coming year, as average house prices increase to near £1.4 million.
At the other end of the scale, those in Barking & Dagenham will pocket a respectable £21,000 as property values rise to £433,369.
The report predicts that the average London home will be worth nearly £600,000 by 2021, as house prices in the outer boroughs rocket by more than £100,000 to £516,278 over the next five years.
Crossrail 2 and the anticipated new runway at Heathrow will boost average prices in Barnet, Hackney and Haringey to more than £1 million by 2032.
Estate agents Knight Frank believe Tottenham Hale, West Ham, and Lewisham will see prices boom thanks to improved transport links cutting commutes, regeneration and redevelopment.
Gráinne Gilmore, head of Knight Frank’s residential research, said: “In terms of pricing, the residential markets in these areas have outperformed not only greater London average pricing but also prime central London pricing, buoyed by the ‘ripple effect’ out from central boroughs, and also by the relative value on offer in these areas.”
Tottenham Hale, where average prices are £301,649, is set to benefit from the development of 5,000 new homes by 2015, as well as a new £110 million station.
Lewisham will see 10,000 new homes go up and a range of town centre improvements, with a possible extension of the Bakerloo line in 2030 also adding value for commuters.
West Ham has 5,700 homes, within a third of a mile of the station, in the planning pipeline and the area’s re-zoning by Transport for London will save commuters over £200 a year.