House prices increased by 4.4% – more than the average for London – in Tower Hamlets in April, new figures show.
The rise contributes to the longer-term trend, which has seen property prices in the area grow by 6.4% over the last year.
An imbalance between supply and demand for properties has remained the primary reason behind climbing house prices across the UK throughout the pandemic.
The need for larger deposits and constraints on accessing mortgages have pushed homeownership further out of reach for many first-time buyers – despite Government figures showing 50% of renters would be able to afford the monthly payments.
In a recent major speech in Blackpool, Prime Minister Boris Johnson announced a “comprehensive review” of the mortgage market would take place in a bid to help more people onto the property ladder.
The average Tower Hamlets house price in April was £499,716, Land Registry figures show – a 4.4% increase on March.
Over the month, the picture was different to that across London, where prices increased 1%, and Tower Hamlets was above the 1.1% rise for the UK as a whole.
Over the last year, the average sale price of property in Tower Hamlets rose by £30,000 – 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 Kensington and Chelsea, where property prices increased on average by 26.7%, to £1,514,000. At the other end of the scale, properties in Hammersmith and Fulham lost 2.5% of their value, giving an average price of £721,000.
First steps on the property ladder
First-time buyers in Tower Hamlets spent an average of £487,000 on their property – £30,000 more than a year ago, and £34,000 more than in April 2017.
By comparison, former owner-occupiers paid £512,000 on average in April – 5.2% more than first-time buyers.
How do property prices in Tower Hamlets compare?
Buyers paid 5.7% less than the average price in London (£530,000) in April for a property in Tower Hamlets. Across London, property prices are lower than those across the UK, where the average cost £281,000.
The most expensive properties in London were in Kensington and Chelsea – £1.5 million on average, and three times as much as more than in Tower Hamlets. Kensington and Chelsea properties cost 4.5 times as much as homes in Barking and Dagenham (£336,000 average), at the other end of the scale.
The highest property prices across the UK were in Kensington and Chelsea.
Average property price in April
Tower Hamlets: £499,716London:£529,829UK: £281,161
Annual growth to April
Tower Hamlets: +6.4%London: +7.9%UK: +12.4%
Highest and lowest annual growth in London
Kensington and Chelsea: +26.7%Hammersmith and Fulham: -2.5%