It is no secret that property prices in London are increasing exponentially in comparison to the rest of the UK, and the infographic below highlights the stark reality of this phenomena.
It illustrates the average increase of London’s property prices by borough since 1995, with each borough given an affordability rating whereby property prices are divided by median earnings in each area. The number of new residential builds started in 2014 is also given.
Hackney has seen the largest percentage increase in housing prices since 1995, going up from a 1995 average of £76k to a 2014 average of £526k. This is an increase of 596%, with an affordability rating of 11.3. Kensington & Chelsea is the least affordable of all London’s boroughs, with average house prices coming in at £1,181k – 32.1 times higher than the area’s median earnings.
In 1995, a property in Newham could be bought for £65k, whilst neighbouring Barking & Dagenham had average property prices of £70k. Today, a home in Newham will cost an average of £233k and £231k in Barking & Dagenham – an increase of 258% and 228% respectively.
Although Newham is one of the cheaper boroughs in London, it has an affordability rating of 7.7, putting it in a similar category to areas with higher property prices, such as Hillingdon and Croydon.
Barking & Dagenham’s affordability rating is 5.1, making it the cheapest borough in London with regards to property prices. Tower Hamlets, despite having property prices averaging £412k, has an affordability rating of 6.7. Since 1995, Havering has seen a property price increase of 212% – the lowest in London – whilst Bexley has had an increase of 217%.
The east of London is cheapest and most affordable. Inner and west London are comparatively more expensive and less affordable, and have also seen higher property price increases.
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