With demand for houses picking pace in Outer London boroughs, the price of residential properties has increased by 47 per cent in the last five years, according to latest research conducted by Lloyds Bank.

House prices in outer London boroughs, such as Barking and Dagenham, Haringey and Waltham Forest, have grown by 47 per cent between 2013 and 2018 from £348,230 to £511,184. Though the prices are still lower in Outer London, the gap is closing with other boroughs in London. In 2013, the average house price of £348,230 for a home in outer London was 20 per cent less compared to London as a whole (£435,712); but today the gap is 16 per cent.

Lloyds Bank attributed the healthy growth in house prices in Outer London to a high demand for more affordable properties. Besides, some areas are benefiting from the new Crossrail link due to open next year as commuters move further afield.

In fact, the house price growth in Outer London is higher than the average growth registered in London in recent times. At present, all home buyers are paying over £600,000 on an average in London. The report found out that the average house price in London increased by 40 per cent from £435,712 in 2013 to £610.701 in 2018.