House prices in London are set to grow by an average of 12 per cent over the next five years, according to research which suggests London’s property slump might not be as severe as many in the industry had feared.
Among the London boroughs pipped to undergo the fastest growth are Hackney, Camden, Tower Hamlets, and Haringey, according to new research from real estate advisor CBRE.
The report also found that Harrow experienced the strongest house price growth over the last 12 months, rising 14 per cent compared with the London average of two per cent, the figures revealed.
However, over the last five years the area with the strongest growth has been Waltham Forest, which saw an 83 per cent increase in the price of property; almost double the London average.
“The figures in this report suggest that London’s population will grow 12 per cent over the next decade, as people continue to flock to the one of the world’s top cities for education, business and heritage,” said Jennet Siebrits, head of residential research at CBRE UK.
Siebrits added: “We estimate that nearly 65,000 new homes are currently under construction and it is crucial that this rate continues if we are to safeguard the future of London as a thriving home for people from all over the world.”
According to the report, London’s growth has been “encouraged by the mass-regeneration of previously unloved areas of the capital. It’s encouraging to see much more thought being given to the role that safe roads, open spaces and green areas play in people’s lives when regeneration projects are planned”.
The news comes despite a swathe of recent forecasts predicting London could suffer a sustained decline in house prices up until 2020.
A YouGov survey last month suggested public expectations for house prices over the next year have hit their lowest level in 12 months, while a recent Reuters poll of 30 housing market specialists estimated that house prices in London are set to tumble as much as 1.6 per cent by the end of 2018 and a further 0.1 per cent next year.
Caution has lingered in the run up to Britain’s discussions with Brussels over leaving the EU, with activity slowing down in many parts of London as homeowners wait to see what type of deal is achieved from the Brexit negotiations.
Yesterday’s Office for National Statistics data showed that London house prices plunged to their lowest rate of growth in nearly a decade in July, falling 0.7 per cent over the 12-month period.
Source: City A.M.