ONE OF the highest points in London, with far-reaching, views across the City with suburban tree-lined streets, is experiencing a new trend of house buying.

Forest Hill in Lewisham has become subject to the domino effect - a trend of house buying whereby the desirability to live in a certain area spreads across local areas, one after the other, creating a knock-on effect.

Following on from the increase in popularity of neighbouring areas such as Clapham Common and Dulwich Village, interest in snapping up properties in Forest Hill has increased as homebuyers benefit from price appreciation and the potential for growth.

Sitting quietly next to more high profile districts on the bend in the South Circular, Forest Hill, an unpretentious inner suburb, is situated between Catford and the green open spaces of Dulwich and Sydenham Hill.

Predicted to be the next hot spot, the property market has been flooded by prospective buyers who have previously looked to buy in popular neighbouring districts but were out priced.

Property developer Berkeley Homes reported on the domino effect after witnessing an influx of parties interested in its Forest Hill Central development in Hindsley's Place.

Piers Clanford, managing director of Berkeley homes in south east London, said: "Forest Hill is an up-and-coming town, which is well connected to the centre of London.

"The SE23 postcode is becoming more desirable as clued-up buyers shift their attention away from more established London areas."

As well as an existing efficient train service providing links into the City centre in just 15 minutes, the completion of the East London Line extension in 2010 will plug Forest Hill into the tube network providing services which will ultimately extend north to Highbury and Islington, west to Clapham Junction and create an axis with Canary Wharf, making commuting much quicker.

Daniel Beckson, assistant man-ager of Kinleigh Folkard and Hayward in Dartmouth Road, Forest Hill believes last year marked the turning point in buyers attitudes.

He said: "When the extension of the East London Line was announced, people wanted to live in Forest Hill because they liked the area as opposed to moving here because it was the next best thing to surrounding districts.

"There has been, and continues to be, an increase in the number of young professional couples moving to the area as a result of the pending line to Canary Wharf."

An ideal location for young professionals working in around the Capital, Forest Hill has a wealth of parks and green open spaces nearby, as well as famous attractions such as the Horniman Museum and Gardens, with its eclectic mix of world artefacts, Crystal Palace Park and Havelock Walk Galleries.

In addition, the centre of Forest Hill has a range of restaurants and bars, including new-era gastropub The Darthmouth Arms, Honour Oak and the Old Bank Italian Restaurant.

With more money being poured into the area to raise its profile Forest Hill is becoming as appealing as its neighbouring districts.

Berkeley Homes is not the only developer who has seen the potential in the fashionable and trendy area of Forest Hill.

The Printworks is a live/work dwelling combining the demand for contemporary living space and commercial units and Honour Oak Church has been converted into 10 apartments and four houses.