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If you're referring to areas of a city, refrain from capitalising these:

There are lots of hipsters in east London.

If the name of a place includes the word, however, capitalise it as you would for any other place name:

There are lots of families in South Wimbledon.

However, when we're talking about areas of the UK you can capitalise:

Rent is quite cheap in the East Midlands.

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