London is home to five of the eight UK areas where house prices are lower than in 2016
New analysis of the latest ONS figures has revealed that the average house price in five London boroughs has dropped compared to five years ago.
The study, by debt specialists IVA Advice, compared the average price of a house in February 2016 to February 2021, across more than 400 areas of the UK.
It found that just eight areas saw their average house price fall compared to February 2016, and five of them are in the capital.
Hammersmith and Fulham in London has seen the biggest drop of 14.65%. The average house price in February 2021 was £659,864, but in 2016 it was £773,192.
The average house price in the City of London dropped by 11.79% from £765,643 in February 2016 to £675,308 in February 2021.
Kensington and Chelsea has the highest average house price in the country, at £1,220,511, however that is a 5.72% decrease compared to the average in February 2016, which was £1,294,602.
Tower Hamlets’ average house price in February 2021 stood at £455,632, which equates to a 1.03% decrease compared to its average of £460,405 five years ago.
Camden is the London borough with the smallest drop in average price of just 0.56%, with the average in February 2016 standing at £827,590, and at £822,936.39 in 2021.
All of the other London boroughs recorded an increase in average house price compared to February 2016, with Newham home to the biggest increase. The average price for a home in February 2021 was recorded at £410,288 – a 24.47% increase on the 2016 equivalent, which was £329,608.86.
Barking and Dagenham is the cheapest borough in London, but its February 2021 average house price of £323,953 is a 23.24% increase on five years previously, when it was £262,861.
Redbridge is London’s third highest increase in average house price value. The north-east London borough’s average house price has increase by 20.75%, from £377,716 in February 2016, to £456,097.98 in February 2021.
Taking the city as a whole, London’s average house price in February 2021 was £496,269, an increase of 8.41% compared to £457,758.
Across the UK, the average house price in February 2016 was £205,555, while the latest figure stands at £250,340. The increase of 21.78% means that only two London areas have seen house prices increase above the national average.
Comparing the four nations of the UK, Wales has seen the biggest increase in average house price over the past five years – 26% – going from £142,711 in 2016, to £179,860 in 2021.
Northern Ireland isn’t far behind, showing a 24.18% increase, with the average price rising from £118,850 to £147,592.
England’s average house price has gone from £220,626, to £268,291 – an increase of 21.6%.
Scotland has seen the lowest rise, 19.98%, as the average cost of a house in 2016 was £134,625, compared to £161,529 now.
The research was carried out by IVA Advice, which provides free, qualified advice to help people solve their debt problems for good. Its team of experienced experts help ensure that anyone who has problems with debt is able to reclaim financial control.