The great London divide: South of the river outperforming the north on house price growth 

New research shows South London’s housing market is outperforming the north and remaining more affordable.

According to recent research by London lettings and estate agent Benham and Reeves, South London’s housing market is outperforming north London in terms of sales volume and annual price growth.

Benham and Reeves has analysed the housing markets across the boroughs of north and South London.

The data shows that South London is leading the way in terms of the average number of homes sold over the past year, averaging 3,003 sales per borough in the past 12 months. 

With a total of 4,552 sales, Wandsworth is the most active market in South London, followed by Bromley on 4,374 and Croydon with 3,953. 

Meanwhile, in the north, the average 12-month sales per borough comes in at 1,929. Barnet is leading the way with 3,415 total sales, followed by Havering with 3,017 and Tower Hamlets on 2,894. 

The lowest number of sales north of the river have come from the City of London, where just 141 transactions occurred over the year. 

Despite this strong performance from the south, north London is still the more expensive side of the Thames. 

The average house price in the north of the capital is £594,634 compared to £519,289 in South London. 

The north’s most expensive boroughs for average house prices are Kensington and Chelsea at £1.3m, the City of Westminster at £968,017, and City of London at £960,868.

The most affordable are Barking and Dagenham at £344,518 and Newham with £417,402.

In South London, the most expensive boroughs for average house prices are Richmond-upon-Thames at £760,775, followed by Wandsworth with £639,194, and Merton at £584,378.

The most affordable are Bexley with £399,578 and Croydon at £425,364.

But Benham and Reeves said this may change as price growth has been much stronger on the south side of the river over the past year.

Across southern boroughs, the average annual price growth is five per cent. None of the boroughs have recorded negative growth. 

In the north, average growth is just 3.3 per cent, while five northern boroughs have seen prices fall.

Director of Benham and Reeves, Marc von Grundherr, said: “While the north enjoyed many years widely considered the most desirable, trendy and culturally significant part of town, the south has also come into its own in recent years, thanks to the emergence of hipster hotspots such as Peckham.

“Of course, like the wider UK market, London is fragmented. While some boroughs struggle to maintain prices and demand, their neighbouring boroughs can soar.

“So while we may have seen higher demand to the south, many areas of the north remain extremely popular.”

(Picture: Pexels)