Property sales in Hackney were down 37 per cent last year, according to a new survey. Meanwhile Croydon has been listed as one of the London boroughs with the most property potential.
The new research, carried out by buying agents Garrington Property Finders, contrasted price growth and sales volumes in 2016 against the prevailing trends seen in London since 2009. Garrington Property Finders said in a press release announcing their Property Supernova findings: “After years of burning brightest, the core boroughs have burnt themselves out – and new stars are rising in the East.”
The research shows that boroughs in the outer zones of the capital such as Croydon have properties with the most potential. Boroughs including Havering and Barking and Dagenham saw a price growth of 18 per cent last year.
The property potential rating for Hackney reflects significant growth over recent years – prices rose by 117 per cent since 2009 – but now the market is beginning to slow down in this area. This in affect means that there is less potential for property prices to increase in this borough.
However in Croydon, a more affordable borough, recent years have not seen a comparable price rise. These relatively low prices, as well as development in the area, have attracted buyers who are now pushing up house prices at a significant pace. This creates more potential for the property here.
Jonathan Hopper, managing director of Garrington Property Finders, told Eastlondonlines that there are many reasons for this shift in property potential. “The punitive levels of stamp duty introduced on high-value properties at the end of 2014 had a long-term chilling effect on prime central London, and Brexit uncertainty has further hampered buyer sentiment.”