Tower Hamlets house prices soared by almost £100,000 in the last year Pic: Arpingstone
Houses prices have increased by almost £100,000 in Tower Hamlets in the last year, new data shows.
The arrival of new high-end properties in areas including Canary Wharf and Wapping have affected the average price of a home in the borough, which has increased by almost 18 per cent since last year, according to Rightmove.
The £617,075 average price in Tower Hamlets compares with the capital’s average of £630,050.
However, Hackney continues to be the EastLondonLines borough with the highest average cost of £649,326.
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Tom Harrington, managing director of online estate agent House Tree, told EastLondonLines: “Tower Hamlets has seen a significant increase in value due to people not being able to afford other locations in the Capital.
“[People are] moving to more affordable locations like Tower Hamlets whilst still benefiting from great transport links.”
Rightmove director and housing market analyst Miles Shipside said: “Demand has been dented by stretched affordability and buyers’ sense of true values after years of big price jumps, but while it has taken a few knocks it still remains robust for the right property at the right price.
“With fewer properties coming to market, let alone the right ones at the right price, demand is still not being satisfied in many areas.
“This has restricted potential with gluts of over-supply and helped push prices to a new average all-time high in the capital, driven by rises in the lower and middle sectors of the market.”
Despite increasing house prices, Shipside said there are signs of a slowing pace in rises in some sectors of the market.
“The overall October rise [is] the lowest we’ve recorded at this time of the year for five years,” he said.
“We still have another national average record however, as prices continue their upward trend.
“This is mainly being fuelled by the heady price rises of typical first-time-buyer homes.
“A near 10 per cent price surge in this category in the last year proves that despite tighter lending criteria in last year’s Mortgage Market Review, some first-time buyers can still afford the higher prices being asked for by sellers in this sector.”