Newham sees steepest average house price rise since turn of millennium, Halifax research shows
PUBLISHED: 17:00 30 December 2019
The price of a home in Newham has risen by more than 400 per cent since the year 2000, the steepest rise in the UK according to new research.
In its assessment of UK house prices since the turn of the millennium, the Halifax bank found that at the end of 1999 the average price of a house in the borough would have set buyers back £75,762.
However, by the end of November 2019, that figure had soared to £400,574, an increase of 429pc and the highest rise in the country.
Newham is one of two boroughs to see a rise of more than 400pc with nine of the top 10 biggest risers in London: Waltham Forest (418pc), Redbridge (346pc) and Barking and Dagenham (335pc) are ranked second, fourth and sixth, according to the Halifax.
Buyers in the capital need to fork out an extra £375,983 (239pc) now than they would have done in 1999 (£157,453) which the bank says goes some way towards explaining decreasing affordability.
In 2000, the house price to earnings ratio (average earnings in Newham as a proportion of average house prices in the borough) sat at 4.2.
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However, by the end of 2019, this rose to 10.8, representing the second highest increase nationally in price to earnings ratio.
Hillingdon saw the greatest increase, from 3.9 in 2000 to 11.1 in 2019.
Halifax managing director, Russell Galley, said of the national figures: "The rise in house prices in London since the turn of the century is well documented.
"A sharp decrease in affordability just shows how quickly the market has moved."
First-time buyers in Newham also face higher prices compared to 20 years ago.
In 1999, a deposit on a first home would have set buyers back an average £10,349. But by November 2019, an average deposit for a first-time buyer rocketed to £75,043, a 625pc rise, according to the Halifax.
This puts Newham third in the top 10 for increases in first time buyer deposits behind top placed Waltham Forest (737pc) and Lewisham (642pc).
Across the country, every region saw houses at least double in value. Buyers in Northern Ireland experienced the lowest increase at 139pc.