November 2017 Newsletter
Here is our latest round up of the current talking points in the London property market.
The Oval Cricket Ground is set to become the largest cricket ground outside India and Australia. The £50 million revamp will increase its capacity by 8,000. In addition, there are also plans to create a new neighbourhood around the stadium which is expected to improve the overall attractiveness of the area. Historically, Oval has suffered from a lack identity being at the centre of the triangle Vauxhall-Kennington-Stockwell, all of which have had better residential stock (ES).
Golders Green, next to Hampstead, in North London, has a growing cosmopolitan population, but keeps strong Jewish roots. About 37% of the population declared themselves Jewish at the 2011 census, making it the most Jewish neighbourhood in the country (FT). Properties in popular roads are still under £1,000 per sqft, (FT), compared with neighbouring Hampstead’s £1,300+ per sqft.
Old Brompton Road – Whilst Christie’s is sadly leaving the area after more than 40 years, Old Brompton Road and South Kensington are still alive and well, in part thanks to the presence of the French Lycée and the accompanying Continental demographics it generates. The area also benefits from a relatively large number of well appointed period apartments. Prices around the Old Brompton Road are up 3% over the past 3 years, although down 5% over the past year (FT/Savills/Land Registry).
Kidbrooke Village, 1bn Greenwich development – Amongst the high profile developments taking place in London is the £1bn Kidbrooke Village in Greenwich. Made up of four distinct neighbourhoods, it will offer 4,200 new properties. Kidbrooke station is serviced by two trains per hour running to Cannon Street, Charing Cross and Victoria.
Pimlico, SW1 – Apart from being very popular with politicians and civil servants who need a base in London, Pimlico is also perceived as being relatively good value for money. With a great central location, prices per sqft are still approximately half compared with neighbouring Chelsea and Belgravia.
Young Urbanites – Of the top 20 areas with most property sales to young professionals, 16 are within Greater London. The four areas outside Greater London are Hove (#1), Brighton (#7), Reading (#18) and Didsbury (#20) (BBC/Lloyds Bank)
Crossrail / Elizabeth Line – such is the power of Crossrail that even in a difficult market locations along its Elizabeth line route are still seeing house price rises in advance of next year’s opening. As an example, average house prices in Hanwell, in West London on the Crossrail line, were £330,000 five years ago, they are now £545,000 (ES).
Help to Buy, the government backed scheme aimed at helping first time buyers purchase newly built properties under £600,000 has come under criticism. By providing a government loan, the aim was to make houses more “affordable”. However, the scheme has perversely stimulated demand when the need was for more supply. As a result, it has helped the larger building companies, responsible for many newly built properties under £600,000 properties, increase their profits. Also the cost of the scheme rises sharply after five years and there is no help to buy the “nearly-new” homes the buyers will want to sell. (FT).
750% – percentage rise in price per square foot in Hackney, over the past 20 years, from under £100 per sqft in 1997 to over £600 per sqft today. (Halifax/PW)
Wandsworth will see more new homes built than any other borough in London between now and 2024. Average prices in SW18 are just under £550,000(ES). This is partly explained by the on going Battersea Power Station and Nine Elms development.
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