New and Improved neighbourhoods
Investment in improvements to public spaces and upgrading existing town centres is helps to drive demand, as well as opening up previously under-used land for both residential and commercial development use. As the need for new housing continues to rise, the creation or improvement neighbourhoods will become increasingly important. Demand has increased in the outer boroughs of London and UK and this is driving strong residential price growth.
Being close to transport infrastructure opens up different parts of city / country, attracts investment, create additional demand for housing and can bring new energy to markets in and around transport hubs. The opening of the Elizabeth Line this year will cut journey times across the capital. Proposed and future transport upgrades, such as HS2 and Crossrail 2 are likely to further drive development in and around station hubs. As buyers get prices out of central London there will be a greater demand on commuter able areas.
Regeneration can lead to a wholesale change of identity for an area Canary Wharf and Nine Elms are prime examples. With large-scale schemes planned or currently under development in London and in UK major cities you normally also see the provision of new shops, restaurants and cafés. Where this is happening, we see potential for the areas to outperform the wider market.
Net supply of new housing London rose to 39,560 in 2016/17, compared to the 66,000 new homes a year needed in the capital. Focusing on areas that are affordable to the wider public will have properties in short supply. These new neighbourhoods as well as existing are expected to benefit and have the potential to outperform the wider market.
Below are some areas to watch out for that will outperform the local areas surrounding
London and UK Property Hotspots places to watch out for!
Some prime areas in London Zone 1 and major regeneration areas such as Nine Elms, Canary Wharf, Greenwich and around Crossrail stations still hold all the fundamentals for a great property investment.
As well as these locations there are some great new areas for London property investors to look out for have been identified for 2019. The fundamentals surrounding any good property investment are detailed below and relevant to the new areas highlighted.
SOUTHALL/HAYES CURRENT PRICING: £600 PSF 2021 FORECAST: £750 PSF
- Significant reduction in journey times once Crossrail in in operation
- An area which hasn’t seen improvements or regeneration for a large number of years but now has large number of large projects in the pipeline with permission for 4,489 private units.
- Development and regeneration planned around station.
CAMDEN TOWN CURRENT PRICING: £1,100 PSF 2021 FORECAST: £1,500 PSF
- A London Zone 1 location but has not seen much change over years is receiving a multimillion pound investment from Mayor’s Regeneration Fund.
- Popular already for Tourist and locals there will be investments to improve public space and investments into local business.
- Part of the redevelopment includes the Camden Lock Village development, which will comprise eight buildings, a new canalside market, cafes and restaurants, a cinema, 195 residential units, a food quarter and commercial space
- Nearby Euston Station is also set for improvements, with six new high-speed platforms being built to support the opening of the first branch of the HS2 route in 2026, and a further five highspeed platforms planned for the opening of HS2 phase 2, which runs from London to Leeds and Manchester.
WOOD GREEN CURRENT PRICING: £650 PSF 2021 FORECAST: £800 PSF
- A London Zone 3 location 15 minutes to London Kings Cross is an area which has not seen investment for a few decades is nor earmarked over £3 billion for redevelopment.
- This would include 60,000 sq ft of new employment space and potential creation of 4,000 jobs
- 7,000 new homes and a new town centre with shops restaurants and café’s
- It has also been shortlisted as a potential station along the Crossrail 2 line
LISSON GROVE CURRENT PRICING: £1,400 PSF 2021 FORECAST: £1,850 PSF
- Lisson Grove is the neighbouring area to Regents Park, St John’s Wood and Marylebone but has not gained the appeal of its well know neighbouring areas. This is all set to change with comprehensive regeneration and improvement to the local housing stock.
- Westminster council launched a 20-year, £1.2 billion regeneration blueprint for the Church Street ward, in which Lisson Grove is located
- As part of the plan, the local authority has pledged to favour art and antiques tenants over other uses when shops come up for lease, with the aim to turn it into a market to rival Portobello Road.
CANADA WATER CURRENT PRICING: £900 PSF 2021 FORECAST: £1,250 PSF
- A London Zone 2 location the This South East of London region is priced more favourably compared to other London Zone 2 locations and has excellent transport links with journey times of 2 minutes to Canary Wharf and 12 minutes to the West end.
- The Canada Water Masterplan, led by British Land, is a £2 billion project to create a major new town centre within Southwark.
- This will comprise 3,500 new homes, offices, shops, restaurants and public spaces, including a three acre park, a cultural and leisure centre and a new campus for King’s College London.
- The new masterplan, coupled with the existing transport links, will serve to generate a greater rate of growth than in the wider area.
WEST HAM CURRENT PRICING: £700 PSF 2021 FORECAST: £950 PSF
- West Ham station was recently rezoned by TfL from Zone 3 to Zone 2/3,
- The area has excellent transport options that include the Jubilee, District, Hammersmith & City, Overground and DLR lines, along with Crossrail running from Stratford from 2019, looking to make it one of the best-connected transport hubs in East London.
LEYTON CURRENT PRICING: £675 PSF 2021 FORECAST: £800 PSF
- Located just above it’s neighbouring area Stratford which has seen a massive amount of regeneration with Westfield, Stratford International Station and the Queen Elizabeth Olympic Park the area has been identified by the local council as a high priority growth area.
- Plans to create a new community to the west and south of the town centre. As part of this, there are proposals to build new homes, primary schools, health and public facilities.
- Improvements are to be made to road and rail access, resulting in better connections into the Queen Elizabeth Olympic Park.
- Timeframe is for this to be complete by 2022
HACKNEY WICK CURRENT PRICING: £700PSF 2021 FORECAST: £850 PSF
- Hackney Wick is another area on the edge of Stratford and will benefit from public sector led regeneration led by the London Legacy Development Corporation.
- Plans are in place to create a new neighbourhood with thousands of new homes, live-work dwellings, workshops and small business premises.
- The overground train station, which connects the area with Canary Wharf and the West End is undergoing a £25 million facelift to help improve accessibility.