JLL Residential

By 2019 there will be no London postcodes where a one bed flat averages less than £200,000

London, 18 April 2017. Felicity Young, +44 (0)20 7087 5108

Latest residential research by JLL reveals that at the end of 2016, only 12% of London postcodes had an average of less than £200,000 for a one bed flat.

But if current price growth trends continue, within 3 years there will be no postcodes left in the Capital with typical first time buyer properties averaging below £200,000.

Price growth for one bed flats in 2016 was notably higher in outer London compared with Inner London, JLL's research shows.

JLL Residential Research Associate Director, Nick Whitten says: "A critical supply-demand imbalance has compounded the affordability issues facing many aspiring homeowners in London.

"More and more first time buyers are turning to the outer boroughs in search of better value housing. However, this new wave of demand is creating significant price growth in outer areas, well in excess of wage growth.

"If this trend continues there will be no London postcodes left where a one bed flat averages below £200,000.

"A significant increase in housing delivery of all tenures is needed to address this issue and ensure London can continue to thrive as a global capital."

JLL Heatmaps

JLL’s latest London heatmaps show how residential prices, rents and yields vary by postcode district across the Capital. They also show which areas have seen the highest and lowest price growth and rental growth over the course of 2016. Some areas have seen prices rise by more than 20% in 2016 while other markets have witnessed price falls.

•   Average pricing for a one bedroom flat ranges from over £1m to under £200,000.
•   House price growth in 2016 is in excess of 21% in some parts of London but is below -4% in others. 
•   Rents across London for a one bedroom flat vary from under £900 pcm to over £2,400 pcm.
•   Rental growth in 2016 was above 12% in a few postcode districts but in some areas rents declined by more than 4%.

The data covers the four quarters of 2016 for one bedroom apartments. The information used is Rightmove data provided exclusively for JLL.

View London Heatmaps