Last year was a big one for house prices in London. With a backdrop of covid recovery and the cost of living crisis, there was a big focus on housing and affordability. New data now shows which areas had the highest price increases. As a leading provider of property services such as council leasing in Barking and Dagenham, we want to take a look at the data.

A year of increases

The figures from Zoopla show that values were up in every single borough in London. However, the difference between the best performers and smallest increases is quite large.

The top area according to the data was Barking and Dagenham. In 2022 the average price rose by an impressive 6.6%, reaching £339,100.

Next on the list was Bexley. Over the course of the year the average house price here was up by 5.7%, hitting £403,800.

Third was Havering. Although slightly behind in terms of growth with 5.5%, the average price overall was higher at £428,900.

The top five was rounded out by Sutton and Richmond upon Thames. Both areas had an increase of 5.2%, with prices reaching £428,900 and £774,500 respectively.

To contrast, the borough with the smallest growth in prices was the City of Westminster. Prices here were up by just 1.3% to £976,000.

Two other boroughs had growth below 2%. These were Kensington and Chelsea (1.7% to £1.182m) and Camden (1.9% to £754,900).

What does this show?

There is an obvious thing to take from a look at the data. In 2022 demand was highest for Outer London boroughs. People were favouring locations like Barking and Dagenham that are further out from the centre of the city. These areas were popular because housing was more affordable.

Remote and hybrid working is also having an impact on buyer behaviour. It means people can live further from the central locations without as many concerns about long commutes and big annual travel costs.

Of the traditionally popular spots, only Richmond upon Thames got a place near the top of the best performing areas. However, it is an area that tends to maintain a strong level of popularity no matter what is happening in the market. Other affluent central spots had a harder time.

What could happen in 2023?

Popular areas from 2022 could retain a great deal of interest from this year. The affordability will still be something a lot of people are looking at because of the high prices and cost of living. Locations in Outer London with good transport links and excellent local amenities will likely continue to be the most popular.

However, there are also predictions that Inner London Boroughs will start to close the gap. There is already evidence that urban spots are coming back to life more and more. International interest might start to pick up again too.

Talk to us about council leasing in Barking and Dagenham

Finefair Ltd excels at supporting landlords and investors. Our goal is to tackle concerns about tenancies, voids, rent gaps, property upkeep, and more. Surprisingly, it is possible to take care of all of that with one service with us and the local council.

We can explain how services work and the benefits. Plus we can answer questions and assist with setting up. It is fast and easy, meaning you can start getting secure income in a matter of days.

So, if you want to look at council leasing in Barking and Dagenham, contact us. We are here to help with various assets.