Croydon house prices are set to continue rising sharply according to a leading estate agency in the borough.
Average prices rose between 12 per cent and 16 per cent during 2016 and Streets Ahead director Gary O’Hare sees little let-up in the increases.
"These are really exciting times for owner-occupiers, investors and landlords in Croydon,” said Mr O’Hare.
“London prices are expected to increase around four per cent on average in 2016, and because Croydon is nationally recognised as a London hotspot, I am going to stick my neck out and predict that prices here could increase as much as 10 per cent.”
The Land Registry says price rises in outer London boroughs such as Croydon (12.2 per cent), Hillingdon (15.2 per cent) and Bexley (12.3 per cent) took the average price of a property in every borough in London over £300,000 for the first time in 2015.
And the Office of National Statistics went one step further reporting that property values in Croydon rose by 16.1 per cent last year – the sixth biggest price rise in the UK.
However many forecasters, including the Halifax building society, say while prices will continue to go up in 2016, the rate of increase will slow to around four per cent.
Mr O’Hare says early indications suggest Croydon will again buck the trend, as the regeneration of the borough – including the building of a new Westfield-Hammerson shopping centre – picks up pace.
“Over the years we have learned this increase is governed by supply and demand and in this respect there is no shortage of demand in Croydon,” said Mr O’Hare.
He added that the lettings market in the borough is also on the up, with six or seven prospective tenants for every property.
“December saw little or no growth in rents," he said. "However, 2016 has really taken off with a bang and I have been significantly surprised at the number of prospective tenants registering already.”