Hackney is the top performing London borough over the past decade: UK Property Shop News

New research from Halifax Estate Agents shows that Hackney has delivered the biggest rise in residential property prices in the Capital over the past decade with an increase of 320% from £766 per square metre (psm) in 1996 to £3,222 psm in 2006. The smallest increase was in Sutton with a 151% rise. Greater London as a whole recorded 237% increase from £929 in £3,134.

The first annual House Price Per Square Metre Survey of London examines the movement in house prices on an average price per square metre basis in London's 32 boroughs. Average price per square metre is a useful measure for house price comparison, helping to adjust for differences in property size and type between areas. The average price per square metre is calculated by dividing the average house price by the average square metreage per property (excluding external space).

The three most expensive boroughs in London are Kensington & Chelsea (£6,033 psm), Westminster (£5,145 psm) and Camden (£4,473 psm). Prices are also above the £4,000 psm threshold in Hammersmith & Fulham (£4,192). Barking & Dagenham is the least expensive borough in London with an average price of £2,013 psm one-third of the price in Kensington & Chelsea.

The gap between prices in Kensington & Chelsea and other parts of London has narrowed over the last 10 years. In 1996, the price per square metre in Kensington & Chelsea was 114% higher than the average for Greater London. In 2006 house prices in Kensington & Chelsea were 93% higher than the average for Greater London.

KEY FINDINGS

* Prices have quadrupled in two London boroughs over the past ten years - Hackney (320%) and Newham (316%) - and at least tripled in 29 (of the 32) London boroughs analysed. The majority of boroughs recording the biggest increases are in East London - accounting for seven of the top ten.

* In 2006 seventeen London boroughs have an average psm above £3,000. In 1996 only seven boroughs had an average psm above £1,000.

* Bexley (£2,214 psm), Havering (£2,276 psm), Croydon (£2,313 psm) and Newham (£2,357) are the next least expensive boroughs after Barking & Dagenham in 2006.

* The average house in London has an area of 93.3 square metres. To buy a house of this size in Kensington & Chelsea would cost £562,998, while it would cost £187,893 in Barking & Dagenham, the least expensive borough. In ten boroughs it would cost more than £300,000 to buy the average sized house.

* Hackney has climbed the most places over the past ten years, from a ranking of 25th of all London boroughs in 1996 to 10th in 2006, followed by Southwark (21st to 8th) and Lambeth (19th to 11th).

* Sutton has fallen most sharply in the rankings since 1996, dropping from 8th to 27th. Havering (16th to 30th) and Kingston upon Thames (11th to 18th) were the other boroughs to experience the most significant downward movement in the rankings.

Commenting, Martin Ellis, Chief Economist, Halifax Estate Agents, said: "House price per square metre is a useful measure for house price comparison because it helps to adjust for differences in the size and type of properties between locations. This is a helpful descriptor to be used alongside other more established house price comparators. Boroughs in East London like Hackney, Newham and Southwark have seen some of the largest increases in house prices per square metre over the past ten years. This highlights that many households want the conveniences of city living, like shopping, transport links and easy commuting but have also been attracted by the lower prices in these areas."