Tower Hamlets house prices up by 33%. Pic: Danny Robinson
House prices in Tower Hamlets have risen by 33 per cent, faster than anywhere else in the country, according to a new survey.
A report by property website Rightmove shows that the average house price in Tower Hamlets this month is £560,581 up from £420,727 last year.
The survey says that elsewhere in London, house prices in Croydon have risen by 19,7 per cent and gone up 19.1 per cent in Hackney. Whilst in Lewisham, prices have increased by 12.8 per cent in the last year.
Miles Shipside, director and housing market analyst of Rightmove said that these record prices would come as “no surprise,” for people living in London.
He added: “What might surprise some people is that the last peak was achieved as long ago as October last year. Demand continues to outstrip supply in many areas and with the spring market approaching, further record highs are to be expected.”
The report showed that whilst houses prices in London continue to rise, the most expensive boroughs are no longer the driving force behind this. Prices in Kensington and Chelsea have decreased by 2.8 per cent over the last 12 months and gone down by 1.8 per cent in the City of Westminster. But prices in London as a whole are still up by 2.1 per cent.
Dave Smith, director of the Mile End-based, East London Community Land Trust, said: “There is a huge problem which is that houses were never affordable in the first place. We’ve seen kids having to move schools every year because their families are priced out of the area.”
Smith explains that the Community Land Trust, the capital’s first housing provider to use this model, has an aspiration to build houses in different areas as a way of generating greater affordable housing.
He said: “We think the way forward can be to link house prices to wages rather than the market rate. In our project we’ve seen house prices at 50 per cent below the average because of this method.”
Campbell Robb, chief executive of housing and homelessness charity Shelter, explained that the government had a duty to act on this issue, adding that the dream of owning a house is out of reach for thousands of young people and families.
Robb said: “The government has to meet people half way by committing to bold solutions that will put the brakes on our roller coaster housing market and give future generations the chance of a home of their own.”
Great post James. I think it is a truth nationally acknowledged that house prices in London have always been very high and have become ridiculously high in recent years. Despite this, it would seem not a lot has been done about it and now it has got to a point where people already living there cannot afford it. Is it fair to have them uproot their lives because of it?
It is a fine line however. It is true that the government needs to act but I guess there is a certain price that has to be paid to live in the Capital of the country. Isn’t it the same all over the world? To link houses to wage prices seems a clever idea but will need to be carefully planned out. After all, wages in the same sector can differ greatly and this would entirely cut out the group of people with lower incomes. However, I do think the suggestions made are a step forward in finding a solution.