Major regeneration plans and significant transport upgrades across the capital as well as recent changes to stamp duty for first time buyers are creating new London hotspots. Whilst the challenges facing the property market in 2018 include Brexit, inflation levels and high stamp duty rates (for non-first time buyers) amongst other issues, there are pockets in London that could still show strong growth. The team at Cogress has scoured the market to identify 5 areas that they think will prove interesting for investors:
- Tottenham: Haringey Council signed a development agreement at the end of 2017 with Lendlease for the £1bn High Road West regeneration project in Tottenham, north London . The project is set to transform the area into a modern and desirable place to live and work. The plans include improved public spaces, community facilities and a new public square with shops and restaurants. The first phase of construction is set to start in 2018 but is expected to take up to 15 years to fully complete. The council plans to deliver at least 2,500 new homes of which 750 will be affordable as part of the plans . Tottenham Hotspur’s new £400m stadium development will also be a catalyst for wider regeneration, breathing new life into the area, creating jobs and boosting property prices. Additionally, if Crossrail 2 gets the go ahead, the area will further benefit as Tottenham Hale will become a major interchange and quicker commuter times will draw more people to the area.
- White City: This part of West London has become extremely attractive. Still cheaper than nearby Notting Hill and Holland Park, the area is undergoing a multi-billion pound transformation and gaining a lot of attention from renters, homebuyers and investors. The developments in the area includes 950 new homes, new grade A offices, a new Soho House members club and hotel as well as a plethora of restaurants where the former BBC Centre once stood . Additionally, Imperial College’s new research campus and Westfield’s £600m shopping centre expansion will also contribute to White City’s allure as a thriving place to live and work . Hammersmith and Fulham Council also granted permission in early 2017 for 31 unused railway arches near Wood Lane tube station, just around the corner from the former BBC Centre, to be opened for commercial, leisure and retail use, additionally revamping the area .
- Barking: Barking and Dagenham in east London remains the only borough where average property prices are less than £300,000 . This is especially attractive for people looking to purchase their first home following the recent abolition of stamp duty for first time buyers on purchases of up to £300,000. Average house prices in the area rose by 2.5% during the year which is slightly higher than the annual rise of 2.1% across London. Homes in neighbouring boroughs of Bexley and Havering are of similar prices and have also experienced growth above London’s average. These areas in outer London have outperformed the more expensive inner boroughs as buyers have moved further out in search of more affordable housing. Barking is also benefitting from regeneration with shopping centre plans approved in 2017 for the transformation of its town centre, which is in Zone 4 on the District line with a 25-minute journey to the City .
- Old Kent Road (Southwark): The area that stretches from Elephant and Castle down to the bottom of Old Kent Road continues to undergo significant regeneration. In particular, Elephant and Castle is part of a £3bn regeneration project that is expected to boost Southwark’s economy and attract new businesses to the area. The plan will include a new shopping centre, a new northern entrance hall at the Tube station and 979 homes, of which 342 will be affordable . The borough could also benefit from an extension of the Bakerloo line that will incorporate two new stations along Old Kent Road and significantly increase the appeal of the area, providing quick access to the West End and interchange stations .
- Cricklewood: The north-west London suburb of Cricklewood, just a couple of miles from wealthy Hampstead, has never really taken-off despite having great transport links to Kings Cross and Farringdon, plenty of parkland and beautiful period properties. However, Cricklewood is now set to benefit from the £4.5bn Brent Cross and Cricklewood regeneration programme. The development includes thousands of new homes, a revamped shopping centre, a new high street, offices, parks and schools – all part of an ambitious plan to renovate an area that has long been neglected. A new Thameslink station is also scheduled to open in Cricklewood in 2022 that will further enhance and modernise the area .
- Morby, A. ‘Lendlease inks £1bn Tottenham regen scheme’, Construction Enquirer, 4 January 2018 [Online]. Available at: http://www.constructionenquirer.com/2018/01/03/lendlease-inks-1bn-tottenham-regen-scheme/ (Accessed: 10 January 2018)
- York, M. ‘As the first residents move into Television Centre, a new era is beginning for the BBC’s former home in west London’, City A.M., 28 November 2017 [Online]. Available at: http://www.cityam.com/276516/first-residents-move-into-television-centre-new-era (Accessed: 10 January 2018)
- Bourke, J. ‘Primark and throng of retailer to open at Westfield London’s £600m extension’, Evening Standard, 5 December 2017 [Online]. Available at: https://www.standard.co.uk/business/primark-and-throng-of-retailers-to-open-at-westfield-londons-600m-extension-a3710646.html (Accessed: 10 January 2018)
- Cooper, G. ‘TFL given green light to transform 31 unused White City railway arches’, Get West London, 18 March 2017, [Online]. Available at: http://www.getwestlondon.co.uk/news/west-london-news/tfl-given-green-light-transform-12756915 (Accessed: 10 January 2018)
- Bloomfield, R. ‘Taking the High Road: first look at Tottenham’s £1 billion transformation’, Homes & Property, 14 September 2017, [Online]. Available at: https://www.homesandproperty.co.uk/property-news/first-look-at-tottenhams-1-billion-transformation-a113691.html (Accessed: 10 January 2018)
- Rivera, L. ‘House prices 2017: Barking and Dagenham is now the only London borough where average property prices are below £300k’, Homes & Property, 28 December 2017, [Online]. Available at: https://www.homesandproperty.co.uk/property-news/barking-and-dagenham-the-only-borough-in-london-with-average-house-prices-below-300k-a116421.html (Accessed: 10 January 2018)
- London Borough of Barking & Dagenham, ‘Shopping centre plans approved to transform Barking town centre’, 18 January 2017, [Online]. Available at: https://www.lbbd.gov.uk/news/shopping-centre-plans-approved-transform-barking-town-centre/ (Accessed: 10 January 2018)
- Transport For London, ‘Bakerloo line extension’ [Online]. Available at: https://tfl.gov.uk/corporate/about-tfl/how-we-work/planning-for-the-future/bakerloo-line-extension (Accessed: 10 January 2018)
- Giordano, C. ‘Elephant and Castle plans to be decided’ Southwark News, 14 December 2018, [Online]. Available at: https://www.southwarknews.co.uk/news/elephant-castle-plans-decided/ (Accessed: 10 January 2018)
- London Borough of Barnet, ‘Brent Cross Thameslink’ [Online]. Available at: https://www.barnet.gov.uk/citizen-home/delivering-for-barnet/brent-cross-cricklewood/brent-cross-thameslink.html (Assessed: 10 January 2018)
Always seek independent advice. This blog has not been approved as a financial promotion by Cogress Limited. We are not responsible for the content of external websites. Potential investors must rely on their own due diligence prior to investing.