The global financial crisis in 2009 caused a huge downturn in property values around the world. Even high profile markets like London and New York were hit, causing a fall in property prices as demand fell. According to figures from Lloyds Bank, at the worst the average house price in London hit £362,641. The recovery has been fantastic though. Today, less than a decade later, the average has risen by almost 60% to £578,381.
One of the most surprising things about the recovery is the changes in the market. Although values in prime areas have risen, it is outer Boroughs that have performed the best. The initial boom in central areas caused more and more people to look to the outskirts, eventually pushing up prices here too. Waltham Forest is the greatest example of this. Since the low during the recession house prices in the area have doubled, taking the average to over £433,000.
Outer Boroughs like Newham and Barking and Dagenham have enjoyed the best performance in the last two years. According to the same figures the house prices in the areas is up by 32%. When both areas saw a 15% fall in values between 2008 and 2009, the transformation to become two of the hottest locations in the capital is fantastic.
Buyers who took the jump to invest in properties during the crisis or shortly after it have seen the biggest returns on their money. This is particularly true for people who anticipated that outer Boroughs would ultimately become hotspots because of high demand pushing up prices in Central areas.
At Finefair we continued to offer services for clients all throughout the financial crisis, including working as a lettings agent Waltham Forest clients could rely on. Those who held on to assets and waited for the return of values have seen fantastic rewards. Letting was a great option because it meant that properties continued to earn an income even if the overall value was hit.
If you have any questions about lettings or investing please get in touch. Our friendly team will be pleased to assist you.