The rise of London’s emerging ‘posh’ areas: Wealthy young buyers transform previously downbeat areas such as South Acton and Peckham Rye
The London borough of Kensington and Chelsea has always been the preserve of the wealthy. But what about South Acton and Peckham Rye?
Far from being shunned by cash-rich buyers, these areas - which were once associated with high levels of knife crime and run down high-rise estates - are fast becoming the new go-to areas for ambitious house hunters.
Savills has higlighted London's most expensive areas with prices showing the value per square foot (capital values are shown in pink and rental values are shown in purple).
The shift is identified in a new report by estate agents Savills, which suggests wealthy young Londoners are snapping up properties in so-called ‘edgier’ areas.
South Acton is highlighted by the report as one of London's emerging areas. It tops the list of locations in London where demand is so high that the typical price of a home has pushed past the £500,000 mark during the past year.
The report suggests the average value of a home in South Acton during the past 12 months to May was £628,557. Peckham Rye is further down the list, but still prominent with an average price of £553,894.
The phenomenon has led to an expansion of areas in London that are now considered some of the most sought-after among buyers.
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Savills' Lucian Cook said: “Buyers are being priced out of areas and moving to different areas and so there is a ripple effect.”
“But I think it is more than that. It is also a generational thing where younger, wealthier people are looking for a different area to live in - somewhere that is edgier.”
He went on to suggest that people who work in the arts and media industries tend to move into these areas first, followed by those in financial services.
It means baby boomers who work in financial services are no longer driving this part of the housing market. Instead, it is younger buyers who work in the technology and communication sectors.
The report stated: “These businesses cluster in less established commercial areas of London and new prime residential markets begin to emerge as a result.”
The boroughs of Islington, Lambeth and Hackney have seen the biggest increases in such businesses.
It has resulted in the property values in places such as Canonbury and Clerkenwell, which are both in Islington, pushing through the £750,000 market. Property values in both of these areas today stand at more than £830,000, according to Savills.
Other areas that have been given a boost due to the growth of new businesses, include Dalston, Spitalfields and Finsbury Park.
Wealthy, young Londoners are transforming previously neglected areas of London, such as South Acton
| Ward name | Local authority | Average Sale Price 12 months to May 2015 |
| Highgate | Haringey | £1,301,995 |
| Colville | Kensington and Chelsea | £1,196,261 |
| Hyde Park | Westminster | £1,193,309 |
| Vincent Square | Westminster | £1,158,345 |
| Belsize | Camden | £1,101,108 |
| Sands End | Hammersmith and Fulham | £1,089,357 |
| Earl's Court | Kensington and Chelsea | £1,084,952 |
| Highgate | Camden | £1,082,435 |
| Chiswick Homefields | Hounslow | £1,062,017 |
| Notting Barns | Kensington and Chelsea | £1,037,058 |
| Village | Southwark | £1,036,628 |
| Aldersgate | City of London | £1,025,242 |
| Avonmore and Brook Green | Hammersmith and Fulham | £1,018,936 |
| St Charles | Kensington and Chelsea | £1,017,939 |
| Town | Hammersmith and Fulham | £1,011,340 |
| South Richmond | Richmond upon Thames | £1,011,292 |
| East Sheen | Richmond upon Thames | £1,002,889 |
Top of the locations where typical property prices have broken into the £1m plus bracket is Highgate which saw an average price of £1,301,995 during the 12 months to May.
It follows the release of figures from HMRC that showed the number of sales of homes worth at least £1m reached a new peak of 19,000 last year.
Numbers have tripled during the past decade and exceeded their 2007 level for the first time since the credit crisis.
The Savills report also highlighted how British buyers are still the dominant group in the most expensive parts of London despite competition from foreign purchasers.
| Ward name | Local authority | Average Sale Price 12 months to May 2015 |
| Thamesfield | Wandsworth | £945,068 |
| Addison | Hammersmith and Fulham | £906,079 |
| Church Street | Westminster | £879,228 |
| Canonbury | Islington | £833,701 |
| Clerkenwell | Islington | £832,059 |
| Balham | Wandsworth | £823,419 |
| West Hampstead | Camden | £821,566 |
| Ham, Petersham and Richmond Riverside | Richmond upon Thames | £813,059 |
| Clapham Town | Lambeth | £811,814 |
| Fulham Reach | Hammersmith and Fulham | £807,611 |
| Queenstown | Wandsworth | £806,843 |
| Fortune Green | Camden | £803,442 |
| North Richmond | Richmond upon Thames | £795,824 |
| Twickenham Riverside | Richmond upon Thames | £788,607 |
| Riverside | Southwark | £780,444 |
| Raynes Park | Merton | £778,360 |
| Fortis Green | Haringey | £771,711 |
| Bloomsbury | Camden | £768,669 |
| Mildmay | Islington | £756,493 |
| Alexandra | Haringey | £756,259 |
| Shaftesbury | Wandsworth | £754,152 |
| Cripplegate | City of London | £750,087 |
| Ward name | Local authority | Average Sale Price 12 months to May 2015 |
| South Acton | Ealing | £628,557 |
| Kilburn | Brent | £611,315 |
| Chislehurst | Bromley | £600,462 |
| Winchmore Hill | Enfield | £595,906 |
| Herne Hill | Lambeth | £587,339 |
| Fulwell and Hampton Hill | Richmond upon Thames | £584,114 |
| Ickenham | Hillingdon | £580,587 |
| Pinner | Harrow | £574,436 |
| Blackheath | Lewisham | £567,691 |
| Dudden Hill | Brent | £565,235 |
| Victoria | Hackney | £564,264 |
| Surbiton Hill | Kingston upon Thames | £562,038 |
| Pinner South | Harrow | £561,341 |
| Peckham Rye | Southwark | £553,894 |
| Dalston | Hackney | £550,525 |
| Haggerston | Hackney | £550,349 |
| Hatch End | Harrow | £545,554 |
| East Finchley | Barnet | £545,037 |
| Southgate Green | Enfield | £544,536 |
| Tollington | Islington | £543,633 |
| Shortlands | Bromley | £543,226 |
| Canbury | Kingston upon Thames | £542,893 |
| Hendon | Barnet | £539,024 |
| Ferndale | Lambeth | £537,101 |
| South Camberwell | Southwark | £535,893 |
| Abbey | Merton | £534,016 |
| Wanstead | Redbridge | £532,663 |
| Kilburn | Camden | £531,428 |
| Lordship | Hackney | £529,320 |
| Bow West | Tower Hamlets | £525,396 |
| Larkhall | Lambeth | £525,299 |
| Darwin | Bromley | £520,740 |
| West Barnes | Merton | £518,202 |
| Oakleigh | Barnet | £517,357 |
| Hackney Central | Hackney | £517,269 |
| Graveney | Wandsworth | £516,956 |
| Greenwich West | Greenwich | £514,664 |
| Tooting | Wandsworth | £514,083 |
| Harringay | Haringey | £513,544 |
| Canons | Harrow | £511,375 |
| Petts Wood and Knoll | Bromley | £509,952 |
| Finsbury Park | Islington | £509,051 |
| College Park and Old Oak | Hammersmith and Fulham | £505,595 |
| The Lane | Southwark | £501,320 |
| West Wickham | Bromley | £501,256 |
Savills has mapped how London's wealthy areas are changing. Click to enlarge the map
