The Curious Case of Croydon’s House Prices

By - Monday 18th March, 2013

You’ll find an update on Croydon’s House Prices here

Your house. Your home. It’s where you grew up, where your best memories are forged, where you spend time with your loved ones. And if you live in Croydon, it could become where you make your fortune.

By far the best performing area in the country for house prices, Greater London is defying post-financial crisis predictions and remains an area of strong growth in this department, and in all likelihood will continue to do so. Indeed, according to The Daily Telegraph, the cost of an average home in London could hit £500,000 by the end of the decade. If we look at the current figures, it seems as though Croydon house prices are set to capitalise on this strong growth. According to the February edition of the Rightmove House Price Index, Croydon was the fifth best performing borough in London in terms of house price increases, at £294,058, a 3.7% increase over January figures, and a 7.5% increase over February 2012 figures. This points to great potential; as Croydon is currently the fifth cheapest borough within London to buy a home, many investors in Croydon residential property can expect a strong return on their investment given current performance – and that is a good measure of determining future potential.

One could argue there has never been a better time to invest in a Croydon home. With East Croydon improving already excellent transport links, West Croydon becoming part of London Overground, and Hammerfield bringing regeneration to the town centre, the future looks promising. In addition to this, many people are being priced out of our neighbouring boroughs; the average home in Lambeth now costs £473,793, and in Lewisham £374, 597. Yet the prices in both boroughs are not growing as strongly as Croydon.

Are prices being pushed up by a lack of supply compared to demand, or because Croydon is an ever-warming area of opportunity in London?

Property in London is seen by some as the perfect investment asset, given that it will always increase in value. This could have several benefits for Croydon. For one, attracting wealthier individuals and families to the town will improve business for restaurants, shops, and the local economy. For another, it may improve the lives of those later in life; selling your home should prove more straightforward if there is growing demand, and receiving a higher price may improve quality of life that bit extra. For the elderly, too, an increase in house prices may provide security in the form of leaving a valuable legacy for future generations or releasing some of that equity to pay for care.

Clearly, too, there are disadvantages to growth in house prices. For the first time buyer, it may mean having to rent, live with parents, or live further away from where they want to. Estimates of the average age of first time home buyers now place them in the early thirties, far older than at any time in modern history. This is where Croydon needs to show its responsibility as a council by providing affordable homes. Positively, a new local plan has just been approved. This plan seeks to build 20,200 new homes 2031, both to meet rising demand and to capitalise upon the wider regeneration processes planned for Croydon.

So, are prices being pushed up by a lack of supply compared to demand, or because Croydon is an ever-warming area of opportunity in London? The answer perhaps contains an element of both. There is no doubt that Croydon is an opportunity area for London and increasing house prices are a good indicator of that. Within London in general, population rises are comprehensively outstripping predictions, leading to huge pressure on supply of houses, hence pushing prices up all over the capital. Given the focus the council is now putting on building new comes within the borough, Croydon can be viewed as a microcosm of London; as people are being priced out of the more expensive areas, demand is increasing on the town, meaning a higher-than-London-average increase in house prices.

If and when the economy recovers, Croydon homeowners may be able to look forward to being in a strong position financially compared to the rest of the country. Could CR postcodes become some of the most sought after in the country?

Tom Lickley

Tom Lickley

Contributing a variety of roles to the Citizen since early 2013, Tom now focuses upon regeneration, urbanism and real estate writing. After three years spent working within the real estate industry, he now works in regeneration and PR following a move back to Croydon.

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  • Liz Sheppard-Jones

    Oh, how they laughed when I bought my little CR0 goldmine :-) Nice one Tom :-)

  • Andrew Dickinson

    Oh, how I hope you are right Tom. If Croydon starts to fulfill some of the potential plans then you could be spot on as it becomes a more attractive place to live.

  • Andrew Dickinson

    Lovely pic as well by the way

  • Cathy Aitchison

    The smartest move would be if TFL were to classify East and West Croydon stations as Zone 4/5 (instead of Zone 5 as they are now). Then if everything north of those two stations counted as Zone 4, it would give a boost to the northern areas. If Chigwell, Hounslow Central and Richmond can all be considered Zone 4, then surely East and West Croydon could, too.

  • Stephen moore

    Great article. I boughten first ever home last October and Croydon was where I decided to do this. You get so much more for your money and in addition you get great shopping and transport links. I moved from holloway in north London where £250k gets you a small one bedroom flat.. In east croydon that buys me a 4 story townhouse with 3 bedrooms, 2 living rooms, 2 bathrooms, a dining room and a huge garden with a hot tub. I can be at the station in 10 minutes and I am 2 stops from Victoria. It’s the best decision I ever made. This is from the man who swore he would never live south of the river / how wrong and misguided I was. Those with any sense would move here, buy a big home and travel in easily. Stephen CR0……

  • Simone Luciani

    I’m buying a flat in Surrey Street, Bridge House, one of the new built buildings in the old town centre. I love living in Croydon, you have everything you need: good food, good shops, easy commuting. I agree that it would be great if TFL could classify us zone 4. I believe in this borough!