Tower Hamlets house prices rise 43.1%

By Jon Massey on May 19, 2014 11:03 AM |

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House prices in Tower Hamlets have increased by a massive 43.1% in 12 months according to Rightmove's latest figures.

The firm says the borough's blend of convenience and value is behind the rise and explains why it is accelerating far ahead of the rest of the capital in terms of growth.
London as a whole saw prices rise an average of 16.3% with an values increasing 3.3% this month.

Miles Shipside, Rightmove director and housing market analyst, said: "While some boroughs have run out of price rise legs over the last few months, their baton has been taken up by others to maintain the 2014 trend of an average £4,500 weekly increase in the price of property coming to market.

"Based on this month's figures, there's little sign of an overall slowdown even though some areas look to have topped out.

"The net result at headline level is that your average London property is now coming to the market at £80,000 more than at the beginning of 2014.

"London has seen the most sought-after locations jump in price as they have become prized by the world's wealthy and, now level off year-on-year as supply has increased in this relatively small volume sector.

"Some buyers who have been priced out of these areas, or are looking for better value, seem to have turned their attention to the very desirable locations in the capital's south-west."

Rightmove said a lack of supply in areas such as Tower Hamlets was contributing to the astronomical increases.

Ben Butler, sales manager at Morgan Randall in Canary Wharf said: "A number of areas of Tower Hamlets are investor territory, with many cash buyers in the market and accidental landlords who have been sitting on the side-lines since 2008 taking advantage of the buoyant conditions and selling up.

"Around 65% of the properties we are selling are going to cash buyers, and we haven't sold a property for under asking price since around August 2013.

"As an example, one property sold in December 2013 for £425,000 and in March of this year an identical property in the same building sold for £575,000 - a £150,000 difference in just a few months."

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