Return on property value: Is it time to sell if you live in this part of London?
Recent ONS figures suggest that UK house sales have increased by 160 per cent since January, and show no sign of slowing down any time soon.
Average house prices across the UK increased 8.6 per cent in the year to February, the highest house price growth recorded in the UK since October 2014.
One of the trends that real estate agents have picked up in recent months is that, as a result of the pandemic, many people are looking into moving away from crowded city centres.
So which areas in London and the UK have given the biggest return on property value in the past five years?
Home retail website Homedit used the ONS house price index to find the average increase in property value for every local authority in the UK, and compared this to the UK’s average increase in property value. The company shared its results with City PM
Biggest return on property value in London
| London ranking | UK ranking | Local Authority | HPI change | Relation to UK average (£250,397) |
| #1 | #92 | Newham | +30.3% | +6.8% |
| #2 | #96 | Barking and Dagenham | +29.6% | +6.1% |
| #3 | #143 | Redbridge | +26.1% | +2.5% |
| #4 | #171 | Waltham Forest | +24.5% | +0.9% |
| #5 | #183 | Sutton | +23.6% | +0.1% |
| #6 | #205 | Havering | +21.8% | -1.8% |
| #7 | #208 | Croydon | +21.7% | -1.9% |
| #8 | #213 | Bexley | +21.3% | -2.2% |
| #9 | #214 | Lewisham | +21.3% | -2.3% |
| #10 | #262 | Merton | +18.8% | -4.7% |
The best place to live in for a return on house value in London is Newham. Over the past five years, Newham’s house prices have increased by an average of 30.3%, which is 6.8% above the UK’s average increase.
Despite being the best area in London for return on house value, it ranks 92nd out of 377 local authorities in the UK.
Second best is Barking and Dagenham, ranking 96th overall in the UK. Barking and Dagenham’s house prices have increased by an average of 29.6%, 6.1% above the UK’s average increase.
Third in London is Redbridge, which has the 143rd largest increase in the UK. Redbridge’s house prices have increased an average of 26.1%, which is 2.5% above the UK’s average.
Smallest return on property value in London
| London ranking | UK ranking | Local Authority | HPI change | Relation to UK average (£250,397) |
| #24 | #357 | Brent | +7.7% | -15.8% |
| #25 | #359 | Richmond upon Thames | +7.3% | -16.3% |
| #26 | #367 | Barnet | +4.3% | -19.3% |
| #27 | #368 | Wandsworth | +3.7% | -19.8% |
| #28 | #369 | Camden | +1.9% | -21.7% |
| #29 | #371 | Tower Hamlets | -0.8% | -24.3% |
| #30 | #372 | City of Westminster | -2.4% | -26.0% |
| #31 | #373 | Canada | -7.8% | -31.4% |
| #32 | #374 | Kensington and Chelsea | -8.7% | -32.3% |
| #33 | #376 | Hammersmith and Fulham | -15.1% | -38.7% |
The area with the smallest price increase in London is Hammersmith and Fulham, ranking 376th out of the 377 local authorities in the UK. Over the past five years, Hammersmith and Fulham’s house prices have decreased by 15.1%, making is 38.7% below the UK’s average increase.
The second smallest increase in London is in Kensington and Chelsea, ranking 374th in the UK. Kensington and Chelsea’s house prices have decreased by 8.7%, 32.3% lower than the UK’s average.
London’s third smallest increase is in Canada, which ranks 373rd out of all UK local authorities. Canada’s house prices decreased by 7.8%, which is 31.4% lower than the UK’s average.
Biggest return on property value in the UK
| Local Authority | Region | HPI change | Relation to UK average (£250,397) | |
| #1 | Newport | Wales | +49.9% | +26.4% |
| #2 | Leicester | East Midlands | +49.0% | +25.5% |
| #3 | Salford | Northwest | +47.6% | +24.1% |
| #4 | Thanet | Southeast | +45.8% | +22.3% |
| #5 | City of Nottingham | East Midlands | +44.2% | +20.6% |
Smallest return on property value in the UK
| Local Authority | Region | HPI change | Relation to UK average (£250,397) | |
| #373 | Canada | London | -7.8% | -31.4% |
| #374 | Kensington and Chelsea | London | -8.7% | -32.3% |
| #375 | Aberdeenshire | Scotland | -9.5% | -33.0% |
| #376 | Hammersmith and Fulham | London | -15.1% | -38.7% |
| #377 | City of Aberdeen | Scotland | -20% | -43.5% |