Dagenham might be best known for its Ford Dagenham car plant (and the popular film and recent musical this inspired), as well as its status as a popular commuter town on the borders of East London and Essex, but what of property prices in this suburban favourite? Can sellers expect to get their asking price or above?
Below, using our experience of operating as estate agents in the Dagenham area, we take a look at the latest situation…
The most recent figures from the Office of National Statistics (ONS) found that Barking and Dagenham had the second biggest increase in property prices of any London borough in the 12 months up to December 2018, with growth of 3.5% only beaten by Southwark with 4.7%.
While house price growth across London has been a mixed picture of late, some areas – particularly on the eastern outskirts of the city – are seeing house prices soaring.
Dagenham’s exceptional transport links make it especially alluring to those working in the City, West End and Canary Wharf. It’s home to three London Underground stations (Becontree, Dagenham East and Dagenham Heathway, all District Line), as well as c2c services from Dagenham Dock.
In addition, TfL Rail services run from nearby Chadwell Heath – and, once Crossrail 1 is operational, a number of stations close to Dagenham (Chadwell Heath, Goodmayes, Seven Kings, Ilford and Romford) will offer speedy commutes to the centre of London and Heathrow Terminals, as well as slashing journey times to Berkshire to the west and Essex to the east.
Transport links and affordability are both helping to keep buyer demand high, which in turn is helping to push prices upwards as sellers are afforded plenty of negotiating power.
According to recent research, Barking and Dagenham was named as the third best place in London to buy a home, with a relatively low crime rate and an average house price of around £306,000 (one of the cheapest in the capital) making it highly appealing to prospective buyers.
Although prices have been rising in Barking and Dagenham, it can definitely still be counted towards the more affordable end of the house-buying spectrum – which, at a time when first-time buyers in particular are struggling to get on the housing ladder, is likely to make it stand out to people with one eye on their budget.
The findings revealed that the crime rate in the borough was low, with a crime per capita rating of 5/100. With safety highly likely to be a top priority for many buyers – particularly those with young families – it stands to reason that those areas which are the most safe and secure will be the most attractive to those looking to buy a home.
Separate research from property investment portal One and Only Pro showed that Barking and Dagenham had the fourth most ‘Diamond’ rated investment properties in London. Ranking London boroughs based on the percentage of ‘Diamond’ properties on the market in February 2019, the portal’s algorithm gave investment properties across London a score from one to ten, with properties rated ‘ten’ dubbed ‘Diamond’ properties.
Barking and Dagenham was seen as a potentially attractive option for investors thanks to an average price of a Diamond property in the area of only £367,716, with 57 properties currently on the market which qualify for ‘Diamond’ investment status.
Some sellers in Dagenham may be selling their homes to property investors, so the news that it’s seen as a hot investment location is further reason for cheer. Again, with an average price of below £400,000, the town may be seen as a particularly accessible investment opportunity.
Figures from the ONS for house price growth in Barking and Dagenham between August 2017 and August 2018 found that prices had increased by 2.6.%, which was then improved upon further in the most recent ONS statistics (with houses prices leaping by 3.5% in the year to December 2018).
The average homeowner in Barking and Dagenham will have seen their property jump in value by around £125,000 in the last five years, according to the figures.
What’s more, the numbers show that first-time buyers in Barking and Dagenham in August 2018 spent an average of £282,901 – approximately £118,000 more than it would have cost them five years ago. It’s highly likely this upward trend has continued with persistent demand and lower levels of supply continuing to make it a seller’s market.
Another reason why Dagenham is a popular place to buy is the diversity of its housing stock, from bungalows to new-builds and flats to semi-detached, terraced and end-of-terrace homes.
While sellers can still get a decent asking price for their home, the prices aren’t so high that buyers are put off – as could be the case in other parts of London – which helps to keep demand continually high.
Dagenham is also benefitting from ongoing investment and regeneration, with the London Borough of Barking and Dagenham establishing a company called BeFirst to accelerate growth. Along with their partners, the council hopes to build more than 50,000 new homes and create 20,000 new jobs over the next 20 years.
Part of this regeneration is the redevelopment of Beam Park – a former Ford stamping plant in South Dagenham – which will bring 3,000 homes, a new train station on the c2c line (set to open in 2020), and a host of community facilities.
Connectivity, affordability and strong local amenities continue to make Dagenham a big draw for buyers, while the rising house prices of recent years will please sellers.
Here at Balgores Property Group, we recently opened our brand new Dagenham branch to help sellers get the best possible price for their home, using our experience and knowledge of local trends to target the right kind of buyers.
To find out more about what we can do for you, and where else we operate in East London, Essex and Kent, please get in touch on 02085921038.
If you’re curious to know exactly how much your property in Dagenham is worth, you can also request a free, instant online valuation from Balgores by clicking here.