London's most easterly borough sees double-digit rise in house prices, defying wider slowdown. Havering, a borough located in the east of London, has managed to defy the slowdown in
house price growth in the capital, according to a Bloomberg News analysis of UK Land Registry data for the 12 months through November. The data shows that the median price paid for an existing home in Havering was £462,000 ($554,750) in November, compared with about £417,000 one year prior. This represents an 11% rise in house prices which coincided with the opening of three Elizabeth Line stations in the borough last year, connecting Havering to central London in less than 30 minutes. Barking and Dagenham, a neighboring borough that has also benefited from new transport links, is the only other district to see house prices rise by a double-digit percentage in the same period.
Scott Jay, Director at broker Keystones Property, said, “Havering is still very affordable but has good access into the City. There are a lot of buyers moving into this suburb of London from East London where they are obtaining a lot of money for their homes and cashing in.” The Elizabeth Line, formerly known as the Crossrail project, has reduced journey times between the east and west of London. The stations at Romford, Gidea Park and Harold Wood directly connect Havering to central London stops including Liverpool Street, Tottenham Court Road and Bond Street.
Havering’s property market boom comes at a critical time for London’s property market. House prices in the capital have fallen again last month due to higher mortgage rates and a cost-of-living squeeze continuing to weigh on activity, according to lender Halifax. However, existing homeowners in Havering should be cushioned from the full impact of any slowdown, with rail projects historically prompting a rise in home values around new stations. A previous extension to the Jubilee Tube line, stretching from Westminster to Stratford, drove price growth in areas close to new stations about 7.3% above the wider market in the five years after its opening in 1999, according to broker Savills Plc.
Moreover, the backlog of central London residents searching for more space in the work-from-home era may spur even higher prices in the area. During the pandemic, there has been an increase in buyers escaping to the outskirts of London, further fueling demand. Alex Glover, Director at broker Lux Homes, said, “Havering’s relatively spacious properties and green spaces may be particularly attractive. That makes it an attractive option for buyers who want to be close to London without paying the high prices associated with properties in central boroughs.” Photo by Fay1982, Wikimedia commons.