December 2017 Newsletter
Here is our latest round up of the current talking points in the London property market. We hope this gives you some food for thought over the festive period. We wish you a Merry Christmas!
London property hotspots – East Dulwich, Greenwich, Canada Water, Maida Vale and Hammersmith are the five “new” hotspots, as measured by the unusual “spatial interaction modelling”. This measure takes into account an area’s connectivity to other parts of London, the types of jobs held by residents, population density and house price – to – income ratio (Cluttons / PW / CDRC / Land Registry).
Mayfair – South Mayfair is experiencing arguably its most significant spate of development in the past century. The average price per sqft across Mayfair is approx. £2,500, 39% above the prime central London average of £1,800 (FT/Savills).
Dalston – Contrasting with Mayfair, Dalston’s price per sqft is still under £1,000. After several years of high growth, fuelled by vast transport improvements, Dalston is still perceived as a very attractive Hackney location, but price expectations are now flat for a while (FT)
Peckham – Having said this, “Dalston is trendy but does not seem particularly creative, on the other hand Peckham’s got the art schools and their students keep feeding the creative vibe…” However like east London, the flip side of Peckham’s popularity involves franchises and developers snapping up spaces from independent businesses (FT).
West London’s Olympia Exhibition Centre – known for many decades as an exhibition space but not much else, there are now plans to transform the 130 year old Olympia into a £1bn culture, media and tech West London hub, inspired by success for other regeneration projects, such as King’s Cross’. (PW)
Canonbury – this small, well preserved Georgian neighbourhood, mostly home to British finance, legal and accounting professionals, has seen its prices increase by over 40% over the past four years, compared to under 10% for prime central London. (FT)
Offsite Manufactured Housing (OSM) – In the next 20 years, it is estimated that London will need at least 50,000 additional homes annually. Even though some 40,000 will be built this year, we have historically built half that number. Traditional on-site construction techniques cannot meet these targets. Offsite manufactured housing, OSM, is perceived as a possible solution. (ES)
If the London market, as a whole, has softened over the past year (up to 14% in some area, according to Knight Frank), our day to day experience with searches suggests that the overall picture is not quite as straight forward. We are seeing significant differences in price increase/decrease within an area, even a small area, depending on the price bracket and, unsurprisingly, the quality of the property itself. Just as it was the case in 2007/2008, good properties on good roads are much more resilient than average properties on average roads. Note, however that it is difficult to find comprehensive, hard data to substantiate these impressions, at that level of granularity.
Shoreditch – Just to illustrate the point made above, the area around trendy Redchurch Street in Shoreditch has gone up 13% in the past year, against a backdrop of prices decreasing in the wider London area. (FT)
London is now the UK’s second most expensive city when it comes to buying property, the average property price of £467,000 being 10.5 times the average salary of London residents, which is £44,000. Oxford is the most expensive city, with a ratio of 10.7 (ES)
We very much hope that you find this update concise and informative. However please do let us know if you would rather we did not send this to you.