East London drives housing market
He was speaking in the wake of the ONS house price index for August, which revealed that London house prices increased 19.6% annually compared to 11.7% for the whole of the UK.
Bridges said: “London prices are clearly still driving the UK property market – and a quick glance at the east of the capital shows this should be no surprise.
“A plethora of economic and cultural activity has transformed areas around Hackney and Shoreditch, proving to be a magnet for new buyers.
“Better-known areas in West London are now struggling to rival this dynamism and excitement behind new-found areas on the other side of town – and the relatively affordable prices.
“London’s City fringes have become not only our capital’s leading property light, but now arguably the whole country’s.”
Since 1987 the number of available properties in Tower Hamlets, Newham and Hackney has increased by 85%, 44% and 41% respectively according to Stirling Ackroyd research from last month.
This compares to property growth of 24% across the whole capital.
Nowadays properties in Hackney, Tower Hamlets and Southwark are worth £170bn in total, more than all the homes in Wales.
Bridges added: “What the market needs to see now is a rekindled spirit for house building.
“While the East has given London a second lease of life, there is only so long the area can stay affordable if new homes are not built.
“With plenty of under-used industrial land and brownfield sites to the East, developers can be the saviour of middle-income home buyers.”