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Westminister properties ‘underpriced’

Westminister has the greatest proportion of underpriced properties in London, research from fintech firm Proportunity claims.

The startup suggested that three quarters (74%) of Westminister’s properties under £1m are underpriced.

Proportunity said inner London boroughs, which have seen house prices fall or stagnate since the EU referendum, could be set for a post-Brexit bounceback, allowing first-time buyers and property investors to cash in if they buy now.

Vadim Toader, founder and chief executive of Proportunity, said: “It’s no surprise to anyone that central London’s housing market has been hit hard by Brexit and stamp duty reforms, but our analysis reveals the true scale to which property prices have been hit, with the vast majority of homes in highly desirable areas such as Hammersmith and Fulham found to be under-valued.

“While these properties remain expensive compared to the rest of the country, buyers wanting a relative bargain might not want to hesitate for too long.”

Other areas where properties were deemed undervalued by the startup were Kensington and Chelsea (72%), Hammersmith and Fulham (71%), Kingston upon Thames (69%) and Camden (65%).

Proportunity said it works out the true value of properties by analysing thousands of data points on everything from floor space to local crime stats.

The boroughs with the smallest proportion of undervalued homes were Newham (36%), Redbridge (37%), Enfield (41%), City of London (42%), and Tower Hamlets (43%).

Propertunity added that outer London boroughs have seen a high proportion of new builds in recent years, which is part of why there isn’t as much value for prospective buyers.

Those areas have also seen solid growth in recent months, meaning there is less room for growth in the coming months.