Call for your free quote 0800 955 0058

London borough house prices rise even though the capital’s market is subdued

For several boroughs in London house prices are rising although the capital as a whole is struggling to keep pace.

Data from the Office of National Statistics (ONS) shows UK house prices grew by 4.5% in the year to October 2017 with an average property value of £223,807.

Although London house prices were up by only 2.1% over the year, the 11th consecutive month where growth was below the UK average, the top ten boroughs increased by 4.6% to 12.2%.

The City of London experienced recent falls with average property values down -20.3% to £723,576 to June 2017 and now bouncing back 22.9% or £166,000 in just four months to a value of £889,728.

For remortgage buyers these higher prices give them an opportunity to release capital which they can use to improve their home.

Popular boroughs with large price rise

Leading the capital’s boroughs is the City of London now 12.2% up on a year to October 2017 as buyers take advantage of the lower prices in the summer.

Average prices and annual change in London for October 2017 from the ONS for the top ten boroughs are shown below.
Borough Average price Annual change
City of London £889,728 12.2%
Greenwich £404,271 7.9%
Tower Hamlets £498,598 7.1%
Kingston upon Thames £515,912 6.5%
Merton £537,253 6.5%
Redbridge £426,488 6.3%
Hammersmith and Fulham £765,971 6.3%
Newham £380,293 5.8%
Waltham Forest £441,061 5.0%
Lewisham £425,029 4.6%
Strong house price growth was for Greenwich rising 7.9% or £29,600 over the year with average property values of £404,271.

Other strong gains are for Tower Hamlets rising 7.1% followed by Kingston upon Thames and Merton up 6.5% year-on-year.

The higher values in these boroughs allows the older equity release mortgage buyer to stay in their home while accessing the wealth in their property, using this for any purpose such as home and garden improvements or even buy a more expensive home.

There has been a shortage in housing stock and demand from first time buyers and home movers may be driving house prices higher in some boroughs.

House price rise over the year

Looking more closely at regional levels of the UK, the largest annual growth was in the East Midlands rising 7.0% with average property values of £184,544.

This was followed by the South West up 6.7% with values of £251,376 and the East of England higher by 6.1% to £289,168.

No regions were lower over the year, however, month-on-month eight of thirteen decreased with the North West lower by -2.0% followed by West Midlands, Yorkshire and The Humber down by -1.1%.

The borough of Brent in London has seen the largest house price fall, down -5.1% or £25,707 lower values over a year followed by Southwark down -3.6% or £18,547 lower values.

Buy-to-let landlords could take advantage of these for affordable properties as they would require a smaller deposit to buy and help to improve rental yields.

The reduction in house prices is good news for first time buyers as they would require a lower deposit or smaller mortgage to get on the property ladder.

The Bank of England has reported demand for homes has strengthened but there are signs of excess supply in London and the South East with excess demand in other UK regions.

What are your next steps?

Call our LCM mortgage brokers for advice if you are a first time buyer, want to remortgage your existing home for the best mortgage deal, moving home or you are a buy-to-let investor.

Start with a free mortgage quote or call us and we can take your details. Learn more by using the property value tracker chart, mortgage calculator and equity release mortgage calculator.

For equity release buyers our London City Mortgage advisers can recommend lifetime mortgages allowing you to receive cash from your property to improve your quality of life or reduce inheritance tax owed by your beneficiaries.

Use your dashboard to access online mortgage quotes, money off vouchers and start your mortgage application online 24/7 on desktop, tablet or smartphone.

Mortgage Best Buys

These are examples of mortgage products we can approach with many more offering interest rates and flexibility to meet your needs.

1.17% Fixed Rate
60% Loan to Value
£1,025 App Fee
Until 31/09/2022
Reverts to 3.59%
1.19% Fixed Rate
60% Loan to Value
£999 App Fee
2-Years Time
Reverts to 3.59%
1.18% Fixed Rate
60% Loan to Value
£1,034 App Fee
Until 31/10/2022
Reverts to 3.59%
1.16% Fixed Rate
60% Loan to Value
£1,525 App Fee
Until 01/11/2022
Reverts to 4.09%

The latest mortgage news

25 Jun 2021

Seaside towns in Britain with house prices up 10pc due to strong demand

Demand for coastal living has seen house prices in Britain’s seaside towns rise 10% over the year as homeowners change their lifestyle.

24 Jun 2021

House prices at record levels with lack of property choice for buyers

Supply of properties on the market and available to buyers is an all-time low at the same time house prices are at record levels.

11 Jun 2021

Prices for house sales are rising four times faster than flats

Strong demand for houses has driven price growth up 5.2% in the last year which is over four times more than the 1.1% growth for flats.

28 May 2021

Fixed rate mortgage deals fall to under 1pc as lenders compete for borrowers

Fixed rate mortgages are cut to 0.99% for borrowers with large deposits looking to remortgage as competition increases from lenders.

Call for your free quote 0800 955 0058


    Equity Release may involve a Lifetime Mortgage or a Home Reversion Scheme. To understand the features and risks, please ask for a personalised illustration. Equity Release may affect your entitlement to means tested state benefits and will impact on the size of your estate. For Equity Release London City Mortgages charge a fixed fee upon completion of £695. For Mortgages a fixed fee is charged on application. Typically this is from £295 up to £495 for the services selected.


    Equity Release - Equity Released from your home will be secured against it. Mortgages – Your home may be repossessed if you do not keep up repayments on your mortgage or other loans secured against it. Think carefully before securing other debts against your home. The information contained in this website is subject to the UK regulatory regime and is therefore intended for consumers based in the UK.


    9th Floor, 30 Crown Place
    London, EC2A 4EB

    0800 955 0058


    London City Mortgages Limited is a registered company in England & Wales under company number 09278987. London City Mortgages Limited is an Appointed Representative (FCA no. 655965) of Blackstone Moregate Limited (FCA no. 459051) which is authorised and regulated by the Financial Conduct Authority. LCM and LCM Equity Release are trading names of London City Mortgages Limited.

    2021 © London City Mortgages.
    Website designed & developed by Spyre Media