September 2017 Newsletter
Here is our latest round up of the current talking points in the London property market.
Peckham the new Shoreditch? – For those of you wanting to keep on trend, Peckham is one of the places we keep being asked about by our younger clients, With plenty of artisanal coffee shops from Bellenden Road to Peckham Rye, and the successful crowd funding to re-open the Lido, Peckham has a real community spirit. Trains from Peckham Rye take 20 minutes to get to Victoria and 11 minutes to Blackfriars from Peckham Queens Road.
London’s newest neighbourhood – 1,600 acres is to be transformed at Old Oak, West London NW10. A size comparable with Royal Docks in East London. With the arrival of Crossrail, HS2 and a new overground station there are plans for 25,000 new homes and 65,000 jobs over four decades. Only 4,000 people live there today.(ES)
New build houses in Knightsbridge – Knightsbridge is well known for a fine collection of period townhouses and elegant mansion blocks and the few recent developments have very much focused on apartments. Knighton Place on Yeoman’s Row is a development that will include the first new-build houses in the area for many years. The five houses, costing upwards of £20m are now on release.(FT)
Pockets of resilience – property prices have fallen on average by 13.2% in prime central London since the June 2014 peak (Savills). However, there are some areas that are bucking the trend, one of them being Victoria which has only fallen 6.1% since June 2014. Victoria has for many years looked to be very good value with prices per sqft being consistently lower than neighbouring Mayfair and Belgravia, usually at a discount of a third. Very well located and served by train and underground, the area is now starting to catch up and year on year figures are showing a yearly relative increase.
£8bn White City regeneration – The northern end of Wood Lane (ex BBC) has been a hive of activity for some time. It started 10 years ago with the sale of the BBC premises and the construction of Westfield. This has now morphed into an £8bn regeneration scheme which will bring 6,000 new homes and new jobs to White City. Integral to the site is the new campus for Imperial College and a media village for creative businesses. At the same time Westfield is being extended and will house a flagship John Lewis department store, opening planned for 2018.
Beware of exorbitant ground rents – ground rent is a rent paid, by the leaseholder (owner) of a property (more often apartments, but sometimes houses) to the freeholder, who is the owner of the land on which the property is built. Historically ground rent has tended to be a small annual fee with small increases over the life of a lease. However, in recent years some housebuilders have significantly increased the ground rents on newly built properties, and also have altered the way in which these ground rents will increase in the future. Nationwide Building Society has recently announced that it will decline future loans on properties where ground rents increase unreasonably and other lenders are following suit. For buyers looking for a property that has been built in the last ten years, do pay attention to the ground rent figures, if overly high it could make a property hard to sell or even un-mortgageable at a later date.
46,000 new homes will be built this year in London. This is the biggest number in any single year since the 1930’s (ES)
62% of first-time buyers in London over estimate house prices (PW), a very good reason to use a trusted property professional to help buy a first home!
Biggest gains – Recent figures show that the areas that increased the most over the last 10 years are Wapping, followed by Brockley and then Clapton. The age old risk/return model has come into play; how many of us would have been happy to invest in Brockley and Clapton 10 years ago?! Prices in Wapping have increased 155% in the last 10 years. For those who took a more cautious approach to their investments, the more centrally located St John’s Wood and Notting Hill followed in positions 4 and 5, achieving impressive increases of 142% and 134% respectively. (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.