Estate agents say Croydon house prices are spiralling out of control
Estate agents have said property prices in Croydon are "spiralling out of control" in the London property boom.
Interest in buying a property in Croydon is high especially with the impending arrival of Westfield and Hammerson to the town centre as part of a £1bn redevelopment.
According to statistics from property website Rightmove, an average house price in Croydon is £344,715 compared to £294,058 this time last year.
In this month alone average house prices in London have risen by 5.2 per cent compared to last month as prices rebound following a festive lull.
The Spring moving season is traditionally the busiest time of year and Perry Langran, assistant branch manager at Haart estate agents said there has been a non-stop rise over the past 12 months.
Mr Langran said a house near to the town centre which was worth £250,000 in 2012 would now be costing £325,000 if it was put back on the market.
He said: "From early April and late March last year it has been spiralling out of control. It is alright for us and alright for sellers but the buyers are getting outbid really.
"Buyers are struggling a bit at the moment as there is actually a shortage of stock.
"There is the hype about Westfield and Hammerson coming to Croydon and the new help to buy scheme which has led to a massive influx of buyers since October.
"All over Croydon there has been interest since the house prices have sky rocketed in London because this to me is probably the biggest town outside of inner London which has great transport links."
He added: "With the town centre being redeveloped, if I was looking to buy I would be finding somewhere in the West Croydon area as I think that is going to have the biggest potential turnaround once Westfield is done.
"The interest is there, especially with first time buyers as location does not tend to worry them as they want to get on the property ladder."
Simon Bright, Local Director at Townends estate agents, said: "Croydon is a thriving commercial hub, seen very much as ‘a city outside of the city’.
"Its housing market has always benefitted from dozens of resident blue chip companies, excellent transport networks and a more than average number of schools rated as outstanding by Ofted.
"However, over the last twelve months, Croydon has experienced a ‘boom’ in demand, causing the average house price to rise by 18% which I think can be attributed to three things.
"The increasingly unaffordable nature of central and inner London housing is certainly pushing some people towards the fringes of the city in order to seek more affordable living.
"The recovering economy has also contributed to improvements in the local market, driven by increased buyer demand.
"And lastly we have certainly experienced a new level of confidence and optimism about the area, which is being dubbed an “investor’s hot-spot” for 2014, after large redevelopment plans were unveiled last year."
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