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It's also that the Walthamstow specific estate agents deliberately price under. They priced ours under by a good £25k (at the very bottom of the market!) for the reasons @Howard stated - get people invested, get a bidding war going. I hated it.
if this is far-east london, walthamstow onwards, it sure seems like a big price hike, but the area is very bubble-like at the moment. Buyers might be looking at the projected price-hike, feel like it's now or never and worth the gamble. They might also be sitting on a load of deposit that needs using.
Or there is a subsanbtial re-development potential that the buyer has spotted, has the means to realise quick, for cheap, etc.
10 years ago you couldn't buy in Hackney central because the news that it was hotly tipped had travelled all the way the the Evening standard front page.