House price growth in lower value market areas has outpaced the market in prime areas of central London since 2009, new data shows.
According to residential property market specialist Hometrack, markets such as Walthamstow (133.2%), Clapton (133.1%), Peckham (129.9%) and Leyton (128.4%) have grown faster than traditional prime London markets like Hampstead (86.9%), Fulham (87.5%), Mayfair (88.3%) and Islington (89.4%).
Top five London postcode districts by HPI between 2009 and 2017
| Area | Postcode | House price inflation between 2009 and 2017 (%) |
| Walthamstow | E17 | 133.2% |
| Clapton | E5 | 133.1% |
| Peckham | SE15 | 129.9% |
| Leyton | E10 | 128.4% |
| South Hackney | E9 | 121.9% |
Hometrack found that homes in the capital have risen in value by 80% across all house price bands over the last eight years.
However, while the impetus for house price growth continues in the lowest price bands, where prices are currently rising 8% year-on-year, prices at the upper end of the market are currently falling by 5%. Overall London house price growth is heading towards low single digit growth by the end of 2017.
Richard Donnell, insight director at Hometrack, said: “House price growth is now slowing rapidly across London. The annual rate of growth is currently 8% year-on-year in the lowest value markets while prices are falling by 5% year on year in the most expensive markets.
“With a record high price to earnings ratio in London of over 14x stretched affordability levels are impacting demand and reducing the upward pressure on prices. This has been exacerbated by tax changes that have dampened investor demand.”
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