If you’ve decided to buy London property as a long-term investment, you could be feeling slightly confused by the many articles and blogs you’ll find celebrating “the next big London property hotspot”.
Inevitably, you’ll see several different areas laying claim to this title, some with very tenuous reasons for doing so. After careful research we have come up with three London areas that have not only demonstrated exceptional growth up to now, but should continue to increase in value throughout the remainder of this decade.
The greenest borough in London, Hackney has, in recent years, become a dream destination for trendy Londoners, benefiting from the ‘East London effect’ of fashionable restaurants and bars, buzzing markets and independent shops. Between 2007/8 and 2016 prices in Hackney rose by a staggering 50.3%. During the last year alone, sold prices for Hackney property rose by 9%, with most transactions involving flats which sold, on average, for £523,050.
This previously overlooked south London borough is suddenly attracting interest due to the proposed extension to the Bakerloo line, which will connect Elephant & Castle and Lewisham to the West End. The opening of the line is still ten years off but meanwhile the area’s generously-sized Georgian and Victorian housing stock is attracting families, and young professionals in search of more space, to put down roots here. Prices rose by 9.3% between 2015 and 2016 and an average property in Lewisham now costs £410,000.
This borough incorporates Stratford E15 and the Queen Elizabeth Olympic Park. The area’s transformation from an unloved, semi-industrial urban area to a shining beacon of regeneration was due in no small part to the legacy of the 2012 Olympics, which created better transport links, exciting new build developments and some fantastic local amenities. Between November 2015 and November 2016 this area – which includes Canning Town and the Royal Docks - achieved property price growth of 16.3%. Most Newham property sales last year involved flats, selling for an average of £333,011.
All of these areas are currently benefiting from the “reverse ripple” effect, which has seen investors discouraged by high Central London prices turn to the capital’s suburbs. The general shortage of housing stock across London has also fuelled price rises in these boroughs.
If you’d like to know more about London property investments, including smart new build developments in Hackney, Lewisham and Newham, contact our sales team at Moving City today.
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