The eight upand-coming London areas to buy in now
is a trigger for canny individuals too, who move fast to buy properties either to live in themselves or to let out to the capital’s growing army of renters.
“There is undisputed demand in these areas,” says Charlie Hart, Knight Frank’s City and east London development chief. He compares the 39,560 homes built in 2016/17 across the capital with the 66,000 needed annually, according to Mayor Sadiq Khan.
Other estate agents also have their eyes on certain growth areas of London, and again it’s the less high-profile suburbs of the city that feature most strongly.
Foxtons says that Nunhead in the south east is the one to watch. “It’s fallen under the radar for now,” says the agency’s Daisy Mason, who adds that it’s cheaper than more fashionable – and landlords could get an annual rental yield of 4.1 per cent. Thanks to Crossrail, “this undervalued area has a healthy rental potential with plenty of scope for increases in the near future,” Burns says.
Not to be outdone, even Khan’s draft London Plan has come up with 30 Opportunity Areas – locations that are perfect, the mayor says, for development and regeneration. These include Colindale, Cricklewood, Harrow, Kensal Canalside, Catford, New Cross, Park Royal, Woolwich and Thamesmead.
With such a wide variety of recommendations, shrewd purchasers keen to get in on an area before it lifts off are spoilt for choice. There’s a lot at stake, though, because investing in an area that isn’t yet a hotspot could mean several years of sluggish returns – or even turn out to be a dud.
Savills is predicting that average property values in London will rise by only seven per cent by the end of 2022, a far lower figure than in recent years. Winkworth, one of the largest agencies in the capital, is even more pessimistic, suggesting a three per cent drop in prices this year before the market picks up once the effect of Brexit is known.
This all adds weight to the view of Knight Frank’s head of research, Gráinne Gilmore, that London is now “a multi-speed market” with some boroughs, though not all, still seeing price growth. The trick, of course, is to identify those hotspots and take the plunge. Here’s where Knight Frank would put their money. Would you?
Greenview Court in Southall, above; Arlington Lofts in Camden Town, below, has homes from £995,000 via Marsh & Parsons; a flat in Wood Green, bottom, is listed at £525,000 with Barnard Marcus
Lyons Place in Lisson Grove, left, has availability from £825,000 via Chestertons; The Foundry in Hackney Wick, right, starts from £399,950 through Savills