26th November 2015
Croydon finally benefiting from the capital’s continuing property boom as London residential values rise 105% in a decade
The value of private residential property in London has increased by a staggering 105% in the past ten years according to a new report by the Halifax Building Society.
Despite coming through a period of recession, new research by the society shows the UK’s private housing stock is now estimated at £5.1 trillion, growing faster than the consumer price index and the amount of mortgage debt.
With another report forecasting that house prices will continue to rise over the next five years, and Croydon predicted to see price increases of around 17% over the same period, it looks as if the borough is finally benefiting from the boom.
“Whilst in the past Croydon’s property price increases have not been dramatic as other parts of London, everybody now is talking about Croydon including the mayor,” said Streets Ahead Director Gary O’Hare.
“They are all recognising Croydon as London’s new hotspot and town of opportunity – and we have never experienced so many new enquiries, both from homeowners and investors from all over the UK and internationally.”
The Halifax survey found that the value of private residential property across the UK has risen by £1.8 trillion from £3.3 trillion since 2005 – an increase of 53%. This compares to a 35% increase in the retail price index over the same period, which is the equivalent to an extra £76,316 per household in the owner-occupied and private rented sectors.
Regionally, there is a wide variation with housing equity in London being estimated at £798 billion – this is fourteen times the level in Northern Ireland which at £83 billion has the lowest value in the UK. The next largest in the UK is the South East with a total value of £722 billion or £223,197 per household.
Martin Ellis, housing economist at Halifax, commented: “Aggregate net housing equity held by UK households is in a healthy state with total housing assets worth nearly £4 trillion more than the total value of mortgage debt. Despite the rapid rise in mortgage debt over the past ten year, net housing equity has grown by £1.4 trillion since 2005.”
According to another survey prices are expected to rise on average in areas like Lewisham and Waltham Forest by 20% in the next five years, and 17% to £417,690 in Croydon.