House prices will be on the up as well though- especially as the ELL has now become a reality (almost). So there's a lot of overhyping, but probably also some 'natural' price inflation in the area.

Certainly, a lot of people have started to look into Honor Oak/Forest Hill that would normally have not even known that we exist! From personal experience, a lot of our city-based friends are beginning to move from South-West to South-East London (eg, Dulwich, Forest Hill, Brockley, etc) as you get more green space, good schools, and more of a 'community' feel. And housing is still cheaper than it would be in, say, Wandsworth, Clapham or Fulham. This extra demand is bound to increase prices eventually, though perhaps Foxtons and the like are a little premature with their marketing as personally I would have thought that it might be a year or so yet before we really see the impact of the new transport links.

The bottom line is that even if prices rise here, they will still reflect the fact that we're in zone 3 rather than zone 1. By comparison, a small 2-bed flat in Angel starts at around 500k or more, so compared to that even the Foxton prices seem reasonable!