Renovation and Regeneration
Massive improvements to the local infrastructure along with extensive redevelopment in the residential zones in Southwark, Borough and Bermondsey, has seen prices rise by 106% in the five years since the market was at its lowest ebb. The SE1 area has seen a boom in stark contrast to most of the rest of the city, with the average London price rise over the same period lagging far behind SE1 at just 51%.
The construction of the Shard is being credited with inspiring commercial development and investment in the area, as well as attracting an influx of young professionals. Many new jobs have sprung up around the Southbank, as well the area being close to the hub of technology and creative industries. The close proximity of the financial sector is another benefit which has helped fuel the surge in property prices.
No Sign of a Slowdown in SE1
Chestertons’ Tower Hamlets Sales Manager, Matt Johnson says there is no sign of a slowdown when it comes to the new homes sector, stating:
“The residential sales market has not been without its challenges this year, the number of transactions has fallen slightly in fact when compared to 2014, and we’ve seen slower price growth than last year. But owners are still enjoying average sales values in SE1 that are 70% above their pre-global recession peak in 2008.”
Johnson concluded, “Coming into the final quarter of the year, a total of 2,916 homes in 21 schemes were under construction and a further 4,146 homes in 22 schemes had planning permission.”
Rents Rising with Sale Prices
Chestertons’ Lettings Manager, Laura Kitts, added, “Tenant demand was nearly eight percent higher in the first three quarters of the year compared to the corresponding period of 2014, and the number of homes available for let was up by more than half. The wider choice of lets available hasn’t dampened rental growth either, with the average rent [prices] on new tenancies having risen by around five percent over the past year alone.”
It appears that there are still plenty of opportunities for property investors in various parts of London looking to make money on housing in the capital.