Where to Look (and where not to look) for Value in the London Property Market
Updated: Nov 22, 2018
Ludgrove has undertaken an analysis of the relative value of each of London Borough compared to the London as a whole. Our study does not try to determine whether property prices in a particular Borough are cheap in absolute terms, rather whether they under or over-valued compared to where they have historically traded versus London. By way of an example, the Borough of Islington has historically traded at a +36% premium to London property prices on average since 1995 and is currently trading at a +48% premium, and is therefore over-valued by +12% compared to its historic average. The results are summarised below:
The study throws up some interesting observations namely:
Kensington & Chelsea is significantly undervalued trading at a 32% discount to its historic average.
The three most undervalued Boroughs are amongst London’s highest capital value areas namely Kensington & Chelsea (average price £1.15m), Hammersmith & Fulham (£744k) and Richmond (£643k).
Two boroughs stand out as being over-valued as well as having high capital values - Islington (£704k) and Camden (£882k).
The boroughs of Harrow (£457k), Bromley (£438k) and Hounslow (£409k) offer the best mix of being undervalued and offering low capital values, being priced below the average London House Price (£478k)
For completeness, the table below details each Borough ranked by Average Property Price:
If you'd like to find out more about where to find value in the London property market, feel free to get in touch with Ludgrove. We can save you time and money on your property search.
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London W1J 5AP
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