House price growth in once down-at-heel areas of London such as Hackney and Peckham has outpaced posh neighbourhoods such as Mayfair and Kensington since the financial crisis.
Stats from estate agency and property consultancy Knight Frank show that eight of the top 10 performing postcodes for house price growth in London since 2008 are east or south east.
The fastest rising prices are in Herne Hill in South East London. Average house prices have jumped almost 60% here since their pre-crisis peak. In the first quarter of 2008, a house in the area would have cost you £455,528 but prices reached £728,154 in the second quarter of last year.
Other top performing London areas between 2007/8 and 2016 include:
- Homerton (E9): Up 57.8% to £492,194;
- Stoke Newington (N16): Up 55.8% to £571,460;
- Walthamstow (E17): Up 54.8% to £442,389;
- Brockley (SE4): Up 54.7% to £507,197;
- Peckham (SE15): Up 53.2% to £450,497;
- Clapton (E5): Up 52.4% to £427,349;
- Hackney (E8): Up 50.3% to £514,321;
- South Tottenham (N15): Up 49.6% to £443,252;
- Leyton (E10): Up 48.8% to £396,213;
None of the top 10 areas for house price growth are in areas traditionally seen as “prime” by estate agents, such as Fulham or Chelsea.
The explosion in prices follows a surge in trendy bars, restaurants, and venues in places like Stoke Newington, Peckham, Clapton, Hackney, and Leyton. It has made the once unfashionable areas into some of the hottest locations for young professionals and first-time buyers looking to get on the ladder.
Peckham, for instance, was an area once synonymous with the murder of 11-year-old schoolchild Damilola Taylor in 2000. Yet in 2015 London free paper the Metro declared Peckham “the best place to live in London,” citing its cafe culture, food, pubs, and “Carnival vibes.”
Tom Bill, Knight Frank’s head of London residential research, said in an email: “It may surprise some to know that house prices in parts of south-east London have grown by more than prime central London since 2008.
“While the safe-haven appeal of prime central London meant prices grew strongly after the financial crisis, the regulatory landscape has since got tougher and growth of 32.7% is exceeded by areas that include Herne Hill and Brockley. It is a similar story in other more affordable areas of east and north London, where strong demand has rippled outwards and, in many cases, driven a wider regeneration story.”
Commenting on Herne Hill’s incredible success, Paul Humphreys, Head of Knight Frank Dulwich Village, said in an email: “It is no surprise to us that Herne Hill tops the list of best performers in the Capital, especially given the wider context of the recent transformation of south-east London.
“Demand for prime London property has dispersed over the last few years and this ‘ripple effect’ has meant that families looking for green, open spaces, large houses, good transport links and excellent schooling have flocked to the Dulwich area, and specifically Herne Hill.”
Research from Knight Frank in 2015 found that house prices had shot up an incredible 897% in Dulwich over the last 20 years, outpacing every other area in the country.