Tower Hamlets house prices dropped more than London average in August

House prices dropped by 2.4% – more than the average for London – in Tower Hamlets in August, new figures show.

The drop contributes to the longer-term trend, which has seen property prices in the area suffer a 0.8% annual decline.

The average Tower Hamlets house price in August was £464,536, Land Registry figures show – a 2.4% decrease on July.

Over the month, the picture was different to that across London, where prices decreased 0.1%, and Tower Hamlets was lower than the 0.3% rise for the UK as a whole.

Over the last year, the average sale price of property in Tower Hamlets fell by £4,000 – putting the area 19th among London’s 33 local authorities with price data for annual growth.

The highest annual growth in the region was in Haringey, where property prices increased on average by 5.8%, to £630,000. At the other end of the scale, properties in Kensington and Chelsea lost 10.4% of their value, giving an average price of £1,359,000.

First steps on the property ladder

First-time buyers in Tower Hamlets spent an average of £451,900 on their property – £2,400 less than a year ago, but £23,400 more than in August 2018.

By comparison, former owner-occupiers paid £476,600 on average in August – 5.5% more than first-time buyers.

Property types

Owners of flats saw the biggest fall in property prices in Tower Hamlets in August – they dropped 2.4% in price, to £451,219 on average. Over the last year, prices dropped by 0.4%.

Among other types of property:

• Detached: down 2.3% monthly; down 6.1% annually; £816,988 average
• Semi-detached: down 1.8% monthly; down 5.9% annually; £718,033 average
• Terraced: down 2% monthly; down 5.3% annually; £655,165 average

How do property prices in Tower Hamlets compare?

Buyers paid 13.3% less than the average price in London (£536,000) in August for a property in Tower Hamlets. Across London, property prices are high compared to those across the UK, where the average cost is £291,000.

The most expensive properties in London were in Kensington and Chelsea – £1.4 million on average, and 2.9 times the price as in Tower Hamlets. Kensington and Chelsea properties cost 3.9 times the price as homes in Barking and Dagenham (£349,000 average), at the other end of the scale.

The highest property prices across the UK were in Kensington and Chelsea (£1.4 million).

Factfile

Average property price in August

• Tower Hamlets: £464,536
• London:£535,597
• UK: £291,044

Annual change to August

• Tower Hamlets: -0.8%
• London: -1.4%
• UK: +0.2%

Highest and lowest annual growth in London

• Haringey: +5.8%
• Kensington and Chelsea: -10.4%