London’s outer boroughs see price cuts as market overheats

City's property values have skyrocketed 82% over 10 years

TRD New York /
May.May 26, 2017 09:10 AM

Residential Street in Redbridge

Buyers priced out of London’s toniest neighborhoods turned the city’s outer boroughs into hotspots in recent years. But now it seems prices are overheated there, too.

There are a growing number of price cuts on those neighborhoods, Bloomberg reported. “Now that prices in those places are becoming out of reach they are just giving up altogether on the idea of buying,” said Paula Higgins, CEO of consumer group HomeOwners Alliance.

Overall, London property values skyrocketed 82 percent over the past 10 years, outpacing wage growth and pushing buyers to new neighborhoods.

In Redbridge — 40 minutes away from Liverpool Street station — values dropped 30.2 percent in April, according to real estate listings website Zoopla. Tower Hamlets — which includes London’s traditional East End — saw prices rise 74 percent over 10 years but asking prices dropped by 28.5 percent, or $53,133, last month.

Analysts estimate prices in London will be flat for the first time since 2019, with low interest rates limiting the impact of Brexit. But that’s a good thing, since the average price-to-earnings ratio for first-time home buyers hit a record 10.1 last year. [Bloomberg]E.B. Solomont

Related Articles

157 West 57th Street (Credit: iStock)

One57 condo with reduced ask tops a slow week of luxury contracts

Clockwise from top left: 730 Fifth Avenue, Unit #PH21; 730 Fifth Avenue, Unit #18A; The Pierre, Unit #3101; and The Park Imperial, Unit #64

Priciest homes listed last week include $60M pad at Crown Building

250th Issue

The Real Deal celebrates 250 issues

From left: Publisher and founder Amir Korangy, Editor-in-chief Stuart Elliott and VP of Corporate Development Yoav Barilan

TRD’s founders share war stories from over the years

56 Leonard Street (Credit: iStock)

He invested more than $130M into 4 Manhattan condos. Now he’s taking a hit

Due to relatively high income levels and low transportation costs, New York City is the eight most affordable of 20 major cities (Credit: iStock)

NYC is the 8th most affordable big city in America*

53 West 53rd Street, 885 Park Avenue, 70 West 45th Street (Credit: StreetEasy)

Five priciest homes to hit the market last week all over $22M

118 East 76th Street and Developer Joseph Chetrit (Credit: Google Maps and Getty Images)

Manhattan luxury home market off to worst start in seven years