Lewisham crashes "the party at the top"

The ONS has just released its analysis of house price changes across the country during 2014. Prices across borough of Lewisham have risen 21%, one of the highest rates of increase in London and only two points off the highest rate of growth in the country (South Bucks, 23%).

Estate agents Stirling Ackroyd comments: “Waltham Forest and Lewisham have crashed the party at the top. With 22% annual property price growth from 2013-2014, Waltham Forest matches Kensington and Chelsea eye-to-eye, despite their disparate properties’ worth. At the same time, house prices in Lewisham have actually risen faster than those in Westminster, increasing by 21% over the same period compared to the latter’s 20%."

Brockley officially lost its designation as "a relatively affordable part of London" back in May.

With thanks to Brockley Kate.

12 comments:

Lewisham Lady said...

As a London property owner, investor and property pundit of more than 4 decades standing I am not one to make predictions. I've seen it all.

However I now feel the time has come to break that rule.

The very latest Land Registry data shows Lewisham East rising at 20%PA and I cannot foresee a time when property in the entire London Borough of Lewisham will stop rising or even slow to an increase of less than 10%PA.
Incredible I know but what we are all witnessing in Lewisham is incredible indeed.

Guest said...

So the average Lewisham property owner, with a modest property valued at perhaps £500,000 one year ago, has received a bumper £100,000 increase in their property's value.


They've gained, and their assets have increased by, £274 per day, for every single day of this year. Incredible.

JB said...

Well this is definitely sustainable and not at all like before every other bubble popped bringing the wider economy down... When will the UK learn that stability, and modest rises, work out better long term? 21% in one year. Crazy.


All those with houses are seeing much more wealth accumulation than those without, even if they're working 50 hours a week but cannot afford to buy. And they are hammered with income tax. Get a 10k pay rise and you're paying 30-50% more in taxes on that depending on the wage student loan. House goes up by 100k and almost no tax paid. Someone who paid off their house can work 10 hours and is far better off. More than ever the UK is about who has assets and not necessarily working the hardest. For many young people, working hard does not pay.

JB said...

"I cannot foresee a time when property in the entire London Borough of Lewisham will stop rising or even slow to an increase of less than 10%PA"


You sound like an estate agent, and for someone with 4 decades experience a very short memory. Before every pop in a bubble some say this time it's different. Every single time throughout history, starting with tulips in Holland and times after that. Once again in 2015 its housing. Also Chinese stock market too this year - watch out for that in coming months and years.

JB said...

In the UK working pays less than housing.

NAT said...

Bless you Hugh, We'd be all at sea without your insight.

PVP said...

Before everyone gets too excited things appeared to have levelled off somewhat in the last year. As in flat. As in no increase at all. How long before we get an article saying the opposite?

Brockley Nick said...

For me, the interesting thing is the change relative to other parts of London. If there's a levelling-off, I suspect that it will be London-wide, because the rates of increase we saw in 2014 are unsustainable.

terrencetrentderby said...

This is all off the back of record low interest rates. I suspect a large mortgage will be unaffordable for many existing debtors should the base rate rise and their fixed rate deals expire.

PVP said...

Agreed. Whereas before people could look at south-west, west, north and east when looking at options to buy, now Lewisham and its southern environs are probably the last relatively affordable area in zone 3 hence will really come under the spotlight in the next year or two.

Newby said...

I think low rates are key as you say. The decision to buy or rent is really skewed by super low mortgage rates. And foreign buyers are hunting for yield. That said the market doesn't expect rates to move for at least a year and then to peak at less than 2%. If the Greece situation really turns sour then the Bank of England will cut rates again!

Guest said...

Now that we are not affordable anymore, could we have a Car Park Zone around the station??? It is a nightmare.

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