Richmond came in at number one of our list of Boroughs in London expecting to see the largest property price increases. Those living in the area on average earn 45.7% more than the UK average, which means there is widespread affluence. It also has a high employment rate meaning that average household incomes in the area are particularly strong.
However, what hasn’t been accounted for in this economic three to five year analysis, and which could negatively impact house prices in the area, is the Heathrow Airport expansion. A third runway was given the go-ahead by the UK government in late 2016 and it is expected that the planning process will be over by 2020, when building work may start taking place.
As well as Richmond, residents of Westminster and Wandsworth also enjoy better than average earnings. In Westminster the average full time worker earns around 46% more than the national average, and in Wandsworth earnings are 41% higher.
In Camden, pressure on population growth is expected to be a driver of increasing property prices. In the next five years, the local population is expected to grow 7.6%, compared to 5.1% in the rest of London. It is also expected to experience one of the highest levels of short to medium term employment growth in the London region (6.9% growth over the 2015 base level), adding to the number of people likely to want to reside closer to their place of employment.