Revealed: The priciest postcodes in Redbridge for renting or buying a home
PUBLISHED: 07:00 18 June 2018 | UPDATED: 08:12 18 June 2018
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Tenants in Redbridge are paying some of the highest rents in the country while house prices dropped by 3.8pc in April, according to the latest figures.
Average house prices and rents are highest in the IG7 postcode area covering Chigwell, which crosses the borough’s northern border near to Hainault, coming in at £677,657 and £2,317 respectively, according to figures from credit report provider TotallyMoney.
Average rents are lowest in the IG4 postcode area, which encompasses the much of the area around Redbridge Tube station, at £1,121.
While average house prices are lowest in the IG2 postcode spanning Gants Hill, Newbury Park, Seven Kings and Aldborough Hatch at £401,578.
Explore where other postcodes in the borough stack up in terms of average house and rental prices using our interactive map.
Data from the Valuation Office Agency shows that the median monthly rent for all houses in the borough, between April 2017 and March 2018, was £1,200.
That’s almost double the median rent across England over that period, at £675, and among the highest monthly rents in the capital - the average in London being £1,400.
While the latest data from the Office of National Statistics shows that the average property in the area sold for £410,997 - significantly higher than the UK average of £226,906.
But there has been a 3.8pc drop in house prices in the borough in April, despite witnessing a 3.4pc rise over the last 12 months.
Adults in their 20s and 30s have been nicknamed Generation Rent as soaring house prices have put buying properties out of reach.
Dan Wilson Craw, director of pressure group Generation Rent, said: “Renters are in a bind.
If they choose to live where there’s a strong jobs market they might see their pay packet gobbled up by high rents.
“If they live somewhere cheaper, either there’s a risk that it’s harder to find a stable job or they pay for it in higher commuting costs.
“The government must make renting a more secure arrangement, with restrictions on rent rises and unfair evictions, but also look at how to introduce a living rent that ordinary workers can afford.”
In Redbridge, the median monthly rental price has risen by 29.7pc since 2013-14, when the VOA first began publishing this data.
The cost of a three bed family house or flat has risen by 19.2pc to £1,550.
To rent a one bedroom flat you’re likely to pay around £950.
That’s a 26.7pc rise on 2013-14.
The median is the middle figure out of a group of numbers, so not distorted by very high and very low rents.
The figures are calculated after the VOA has collected samples throughout the 12 month period.
Different years have different sample sizes so annual changes are estimates.
Rufus Pauldurai is the manager of Josh Properties, which has more than 100 properties in IG2 post code area.
He said: “Recently rents have gone down by £50 or £100. That is to do with uncertainty surrounding Brexit.
“Once Brexit has happened we will see prices going back to normalcy,” he predicted.
“People are not sure about their jobs - in our opinion that is what it is.
Surinder Sohanpal, director of Reeds Rains Estates in Cranbrook Road, echoed Rufus’ comments, saying that rents had gone down by at least four to five per cent because of Brexit.
“There has been more stock on the market and less tenants - Brexit has had an effect on that,” he said, adding: “We’ve seen a large number of IT professionals relocating to some parts of Europe.
His business has also been around for more than 10 years and is also responsible for managing more than 100 properties across all areas of the borough.
The average homeowner in Redbridge will have seen their property jump in value by around £144,000 in the last five years.
In April, Redbridge underperformed compared to the UK as whole, which saw the average property value increase by 3.9pc.
The data comes from the House Price Index, which the ONS compiles using house sale information from the Land Registry, and the equivalent bodies in Scotland and Northern Ireland.
The figures also showed that buyers who made their first step onto the property ladder in Redbridge in April spent an average of £355,165 - around £125,000 more than it would have cost them five years ago.
Between January and December last year, 2,741 homes were sold in Redbridge, 11pc fewer than in the previous year.