The Brief: According to a Bloomberg News analysis of UK Land Registry data, Barking and Dagenham are the last two London boroughs with double-digit house prices in the resale market in the 12 months through July. The +10% price growth in what used to be the capital’s cheapest areas was influenced by the launch of a new train station in the summer, which will cut travel time to Central London down to 22 minutes. London’s wholesale markets are also set to relocate to Dagenham in the next five years.
Why It Matters: Soaring mortgage costs are expected by the Office for Budget Responsibility to influence house prices, which is forecasted to dip by 9%. However, Barking and Dagenham’s median prices for resales spiked from £317,500 in January to £377,100 in July.
Finanze Foresights: Urban transit systems are known to affect property values, especially those near transit lines, with prices reaching as high as 22%, according to a study. But consecutive interest rate hikes and economic headwinds continue to add pressure on the momentum that the country’ real estate market gained in the last two years. However, Barking and Dagenham will defy forecasts in the coming year since property prices in these areas are still more affordable than other boroughs where values are already following a downtrend. Buyers or renters who can’t find a deal in highly competitive areas won’t mind the additional (but now reduced) travel time. This is also one way of decongesting the city centre and making the most out of areas that used to be less popular for city centre workers.
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