WALTHAM FOREST: Borough's house prices slump

5:51pm Monday 17th November 2008

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HOUSE prices have fallen more sharply in Waltham Forest than anywhere else in London, according to a new survey.

Land Registry figures show that prices plunged 5.8 per cent in the 12 months up to September this year - the highest figure in the capital, and have now dropped even further, to 9.4 per cent.

The fall means the average house price in the borough is now just £233,807.

Now, leading Liberal Democrat councillors are warning that planned large house-building schemes, including the Arcade site development and the Blackhorse Lane Regeneration Area, may be jeopardised as developers get cold feet.

Deputy council leader and Lib Dem group leader John Macklin said the council needs to be "more realistic" about what can be achieved and said he is concerned about the lack of progress on the Arcade site.

He said: "The collapse in property prices is bound to have an effect on regeneration projects in the borough and I will be looking for clarification from the relevant portfolio holders regarding the timetables for work on these projects, "As I have said before a series of unused 'land banks' across the borough awaiting generation is just not acceptable."

The economic slowdown is also increasing the number of people joining the council's waiting list for social housing, with an estimated 2,000 more on the list than this time last year.

Another worry for Waltham Forest residents is the possibility of sliding into negative equity, where a home is worth less than a mortgage.

Credit information group Experian has warned that Waltham Forest residents are at "above average" risk of negative equity.

And in July, the council's cabinet member for investment Terry Wheeler admitted the credit crunch may slow progress on the multi-million pound Arcade site development in Walthamstow, but insisted the scheme is not in jeopardy.