Dalston House London artist property
Visitors pose on Argentine artist Leonardo Erlich's optical illusion installation 'Dalston House' in Hackney, east London. Asking prices in Hackney are rising fastest of all London boroughs, said RightmoveREUTERS/Luke MacGregor

Asking prices on homes in Hackney are rising faster than in any other borough in London. The January Rightmove House Price Index found Hackney asking prices had risen 15.5% over the year to an average of £732,573.

Bromley was in second place, where asking prices rose 11.6% annually during the month to an average value of £556,044.

Camden was the worst-performing borough, with the average asking price dropping by 16.4% to £1,118,218.

For Greater London as a whole, Rightmove said the average asking price rose 2.3% over the year in January to £624,953.

That compares to a 3.2% increase for England and Wales, which has an average asking price of £300,245.

Only around half the number of homes needed to meet demand in London, estimated to be 50,000 new units a year, are being built. The shortage of homes has fuelled house price growth in the capital in recent years, well ahead of the rest of the country.

But affordability concerns for first-time buyers and property tax hikes on buy-to-let and wealthy investors is constraining demand in the market. House price growth in London is forecast to slow and fall behind the rest of the country as a result.

How much asking prices are rising in each London borough

BoroughAvg price Jan 2017 (£)Annual change
Hackney732,57315.50%
Bromley556,04411.60%
Kensington and Chelsea2,485,48310.20%
Islington807,55010.00%
Sutton437,1159.90%
Bexley370,2919.70%
Lambeth662,1778.90%
Enfield486,2368.70%
Havering391,1868.70%
Haringey605,2718.30%
Waltham Forest475,1868.20%
Newham426,9716.20%
Southwark684,4106.10%
Croydon423,3476.10%
Greenwich464,1445.20%
Lewisham473,5924.40%
Barnet732,4394.20%
Harrow542,7334.00%
Hillingdon483,9514.00%
Barking and Dagenham298,2553.80%
Merton632,7493.50%
Redbridge446,5813.30%
Tower Hamlets600,7742.80%
Ealing604,736-0.80%
Kingston upon Thames621,638-1.90%
City of Westminster1,992,328-2.50%
Hounslow499,873-2.90%
Wandsworth775,702-4.10%
Richmond upon Thames864,137-4.70%
Brent573,189-4.70%
Hammersmith and Fulham948,671-11.60%
Camden1,118,218-16.40%

Source: Rightmove House Price Index, January 2017