Friday 23 February 2018

Home prices in Canary Wharf soar by 16pc

Canary Wharf
Canary Wharf

Patrick Gower

Home prices in Canary Wharf climbed at the fastest pace in London in the year through April as hiring by banks increased demand for housing in the city’s financial districts.

Values jumped 16.2pc in Canary Wharf, compared with a 2.3pc rise a year earlier, London-based broker Knight Frank said. Prices in the City of London and its fringes climbed 15.7pc.

“Such strong price growth is built on the improving UK economy and the fact banks are hiring again,” said Tom Bill, Knight Frank’s head of London research. “When you add in rental income, you will struggle to find a prime residential market in London with a higher total return.”

Central London homes overall gained at an annual rate of 7.5pc over the last three months, Knight Frank said.

The housing markets in London’s financial districts were sluggish after the credit crisis as financial services companies cut staff and wealthy foreign investors opted to buy homes in the West End. Job vacancies at London’s financial-services companies climbed 67pc in April as companies sought employees to manage increasing demands from regulators, recruitment firm Morgan McKinley said on Monday.

New home registrations in London rose to the highest in 26 years in 2013 as developers sought to capitalise on a shortage of homes in the city, the National House-Building Council said.

In Tower Hamlets, the borough that includes Canary Wharf, 3,673 new homes were registered, more than any other London borough. Wandsworth was second with 2,136 registrations.

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