Tower Hamlets house prices leapt 7.4% in September

House prices leapt by 7.4% in Tower Hamlets in September, new figures show.

The significant rise contributes to the longer-term trend, which has seen property prices in the area grow by 6.4% over the last year – the highest in London.

The average Tower Hamlets house price in September was £509,454, Land Registry figures show – a 7.4% increase on August.

Over the month, the picture was different to that across London, where prices decreased 0.3%, and Tower Hamlets was above the 0.5% drop 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 top among London’s 33 local authorities with price data for annual growth.

At the other end of the scale, properties in Kensington and Chelsea lost 20.6% of their value, giving an average price of £1,203,000.

First steps on the property ladder

First-time buyers in Tower Hamlets spent an average of £495,000 on their property – £31,000 more than a year ago, and £66,000 more than in September 2018.

By comparison, former owner-occupiers paid £523,000 on average in September – 5.6% more than first-time buyers.

Property types

Owners of flats saw the biggest rise in property prices in Tower Hamlets in September – they increased 7.5%, to £495,361 on average. Over the last year, prices rose by 7%.

Among other types of property:

• Detached: up 7% monthly; down 0.6% annually; £889,404 average
• Semi-detached: up 6% monthly; down 1.3% annually; £772,755 average
• Terraced: up 6.2% monthly; down 0.1% annually; £709,311 average

How do property prices in Tower Hamlets compare?

Buyers paid 5.2% less than the average price in London (£537,000) in September 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 – £1.2 million on average, and 2.4 times the price as in Tower Hamlets. Kensington and Chelsea properties cost 3.5 times the price as homes in Barking and Dagenham (£346,000 average), at the other end of the scale.

The highest property prices across the UK were in Kensington and Chelsea.

Factfile

Average property price in September

• Tower Hamlets: £509,454
• London:£537,424
• UK: £291,385

Annual change to September

• Tower Hamlets: +6.4%
• London: -1.1%
• UK: -0.1%

Highest and lowest annual growth in London

• Tower Hamlets: +6.4%
• Kensington and Chelsea: -20.6%