Huge house price rise is greatest in the capital

02 May 2006

HOUSE prices in Newham have increased by a staggering 281 per cent over the last ten years - outstripping all other London boroughs.

The astronomical jump is detailed in statistics from the Halifax.

And with the 2012 Olympic Games expected to push prices even higher over the next few years, experts say the boom will continue for the forseeable future.

The average house price in Newham in 1996 was £49,785, making it the cheapest borough at the time.

But that figure now stands at £189,660 with Barking & Dagenham being the only cheaper area at £170,325.

In Tower Hamlets houses were retailing at £85,140 a decade ago. The figure stands at £261,574 today - a rise of 207 per cent.

The Halifax research also shows that, after Newham, the biggest rise was in Westminster where prices rocketed by 272 per cent from £137,111 in 1996 to £509,744.

The smallest increase was in Havering where the average price stands at £218,976 - up by 182 per cent from £77,706.

Chief economist at Halifax, Martin Ellis, said: "Over the past ten years the East End has seen the strongest rise in house prices in the capital.

"It's relative affordability and proximity to central London has attracted first-time buyers, while more recently news of the Olympic win has added interest to the local property market.