House prices in Tower Hamlets jump 43 per cent in just one year
The average price of a house in one of London's most deprived boroughs has rocketed by 43 per cent in the space of just one year, figures reveal today.
House prices in booming Tower Hamlets have risen from £433,000 in May 2013 to £620,000.
In the latest price index to be released by property website Rightmove, prices are up by an average of 16.3 per cent across all London boroughs.
Experts are now calling for action to address Tower Hamlets' chronic housing needs.
Rightmove director and housing market analyst Miles Shipside said: "The capital needs a programme of mammoth proportions to create a flood of housing supply.
"While the huge annual gain in Tower Hamlets can partly be explained by a significant increase in cash buyers and investors in Canary Wharf and neighbouring areas driving up the borough average, it is symptomatic of the capitalís wider housing problems.
"These are very real issues that cannot be ignored and cannot be solved without carefully targeted initiatives and massive investment," he added.
Estate agent Ben Butler, of Morgan Randall in Canary Wharf, said his firm had not sold a single property for below the asking price since August last year.
The average cost of buying a home is now £592,763 - and 10 boroughs saw rises of more than 20 per cent year-on-year, the index reveals
But in wealthy Kensington and Chelsea and Westminster prices remained flat, with a 0.8 per cent rise in the former and a 1.2 per cent fall in the latter.
The 10 London boroughs with the biggest house price hikes:
Tower Hamlets: 43.1 per cent to £620,131
Croydon: 26.4 per cent to £384,900
Wandsworth: 26.4 per cent to £908,175
Kingston-upon-Thames: 25.8 per cent to £851,634
Newham: 23.4 per cent to £305,193
Merton: 23 per cent to £591,671
Ealing: 21.6 per cent to £604,316
Hackney: 21.6 per cent to £731,346
Hounslow: 21.4 per cent to £655,178
Lambeth: 20.1 per cent to £635,505