House prices in Wandsworth are set to jump by more than 20 per cent in the next five years, according to forecasts by a leading estate agent.
Despite years of recession, south London property market prices have remained stable since spring 2009 when the banking crisis triggered a global economic collapse.
Instead, the average price of homes in the borough, forecast by estate agents Savills, is predicted to rise by a whopping 21.9 per cent by 2017.
The news means a typical three-bedroom house in Tooting, now valued at £375,000, will increase in value by £82,125 to a rewarding £457,125.
Average increase throughout the capital in that time is 21.0 per cent.
The predicted surge is due to the “bulletproof” central London prime property market, driven by foreign investment, which has steadily increased despite the economic turmoil elsewhere in the UK.
Neal Hudson, from Savills’ residential research team, said: “House price growth over the next five years will continue to be driven by the prime central London markets with spill-out demand driving strong price growth in surrounding boroughs, as has been seen in Fulham and Wandsworth, for example.
“There will also be some localised outperformance by areas benefiting from regeneration schemes, for example Crossrail, the regeneration of Nine Elms, the White City regeneration of the BBC site and the Euston/Kings Cross masterplan.”
He said another major factor fuelling rises in “nappy valley” family areas, such as Balham and Tooting, was a reduction in people leaving London and moving to the home counties.
Graeme Lawrence, branch manager of estate agent Haart in Tooting, has worked in the area for the past 20 years.
He said: “Prices in Tooting have doubled in the past 10 years. Around the UK, prices peaked in 2007, fell away slightly in 2008, but they have risen year on year since then.
“They have now risen beyond that 2007 peak and the future of areas like Tooting is very promising.
“From what I understand, the most sought after areas potential buyers look at are SW17, SW18 and SW19.”
However, the predicted rise has fuelled fears of a housing crisis as Campbell Robb, chief executive of homelessness charity Shelter, pointed out.
He said: “At a time when wages are stagnating, this latest prediction is another blow to the millions priced out of a home of their own and left at the mercy of an overheated rental market.”
How Wandsworth is leading the way in house price forecasts in south west London:
Wandsworth 21.9 per cent
Lambeth 21.4 per cent
Richmond 21.1 per cent
London 21.0 per cent
Merton 20.6 per cent
Kingston 19.8 per cent
Sutton 18.3 per cent
Croydon 17.8 per cent