Building in the face of uncertainty:the London boroughs defying Brexit jitters with thousands of new homes
Waltham Forest, Tower Hamlets, Hammersmith and Fulham and Newham are enjoying great house price growth and enticing buyers with new housing schemes.
Despite political uncertainty, fears of a “disorderly Brexit” and dire warnings of a “no-deal” property slump from the Governor of the Bank of England, London house prices are set to climb by 13 per cent over the next five years, research reveals.
The boroughs of Hackney, Camden, Tower Hamlets, Barking and Haringey are expected to ride any economic storms to lead the price inflation table for the capital, according to the property group CBRE, which also forecasts a recovery for the luxury homes market in the same five-year timescale.
Exclusive to Homes & Property, this research flies in the face of a recent Reuters poll of analysts which warned of an impending and serious house price “correction”.
London’s reputation as a global centre for financial services and its burgeoning creative and tech industries will continue to attract workers from across the world, explains CBRE’s head of residential research Jennet Siebrits.
She predicts the capital’s population will continue growing, from 8.9 million last year to 10.05 million by 2022 — a 12 per cent increase set to power property sales.
“The attraction of London as a place to live and work is unlikely to abate, encouraged by the mass regeneration of previously unloved areas of the capital,” says Siebrits, whose report Borough by Borough, launched today, reveals those pockets of the capital that have defied political uncertainty and the Brexit effect.
WALTHAM FOREST: TOP PERFORMER
House price rises in Waltham Forest have soared 83 per cent since 2012, the largest increase of any London borough, taking the average value last year to £442,352.
This compared with a 44 per cent London-wide increase to £488,644.
Young professionals and families seeking relatively affordable homes with gardens, plus a swift work commute into the City or the West End, have propelled Waltham Forest prices. It’s now the 13th-cheapest borough of 32.
“There’s a significant number of regeneration projects going through the planning stage that will continue to improve Blackhorse Road around the Overground station and Tube. It’s a really exciting, accessible area,” says Joe Selby of CBRE.
Telford Homes has bought a three-acre former industrial site 150 yards from the station called the Equipment Works and a grant from the Mayor of London and Transport for London is funding a new network of cycle paths and road improvements.
“Its northern areas like Chingford, Friday Hill and Highams Park are the more sought after due to their more affluent image and suburban feel and it’s these family factors that appeal to the capital’s second steppers, even while much of London is wobbling in the face of political uncertainty,” says eMoov’s Russell Quirk.
TOWER HAMLETS: PEOPLE POWER
Vast schemes such as Blackwall Reach — which will deliver 1,600 homes when finished in 2022, with half affordable — and new residential towers at Canary Wharf are responsible for the burgeoning population in Tower Hamlets.
CBRE has forecast a 20 per cent increase in residents by 2022, the biggest increase in the capital, which in turn will fuel a 19 per cent rise in house prices.
The east London borough has the biggest pipeline of new private homes, according to Savills. Some 28,600 new homes will be built over the next five years, just over a tenth of the 269,000 total across Greater London.
The final phase of the 26-storey Liberty Building at Limeharbour in Canary Wharf goes on sale today, with 35 two and three-bedroom flats from £785,000. The building also has a gym. Call the sales team on 020 8023 5970.
The next phase of Blackwall Reach homes is for sale from September 29 with two-bedroom flats below the £600,000 threshold and available with Help to Buy. Call CBRE on 020 7205 2199.
Housing association L&Q is selling 104 one and two-bedroom flats, with a third for shared ownership in the Neo building in Stepney.
Limehouse station is a short walk away and prices start from £441,000 (lqpricedin.co.uk).
HAMMERSMITH AND FULHAM: RENT HIKES
Tenants in Hammersmith and Fulham have seen the most punishing rent rises since 2012, driven by increased demand to live in the borough.
The average monthly rent is now £1,324, up 29 per cent in the last five years compared to a five per cent London average.
Fulham, in particular, remains a core area for young professionals, explains Mark Collins, chairman of the residential practice at CBRE.
Collins cites the continually improving riverfront as one of the biggest changes to the area with new schemes such as Fulham Reach and Queen’s Wharf overhanging the Thames.
As part of both schemes, the towpath has been opened to the public, with only the stretch by Fulham Football Club remaining closed.
At Palace Wharf, 16 luxury loft-style flats sit around a courtyard with views over to Barnes Wetlands. Prices start from £829 per week for a two-bedroom home. Call 020 7408 5132.
At Hamlet Gardens, opposite Ravenscourt Park, the restored Victorian mansion block is now split into one, two and three-bedroom flats with prices from £475 per week. Call 020 7408 5169.
NEWHAM: CROSSRAIL CENTRAL
Newham has recorded the second highest house price growth of any borough over the past five years, at 70 per cent, taking the average value to £372,069.
Few areas have seen such change: CBRE estimates that £22 billion will be invested in Newham between 2012 and 2025, creating more than 35,000 homes and 100,000 new jobs since the redevelopment of the Olympic Park started.
Local regeneration was also triggered by the arrival of Westfield Stratford City shopping centre and within the next 12 months, the borough will be home to five Crossrail stations.
Schemes at Canning Town and Custom House will deliver 12,000 new homes, with 5,000 more at Royal Docks.
FIRST-TIME BUYER SHOOTS…SCORES!
After renting in London for 14 years, Nina Thomson, 38, bought her first home at Upton Gardens in Newham using the Government’s Help to Buy scheme.
Her one-bedroom apartment with a balcony, below is in the conversion of West Ham United’s former Boleyn Ground football stadium.
“I never thought it would be possible to own my own home. But after years of saving — which is so hard when you’re renting — and with a leg-up from Help to Buy, I’ve been able to buy my first home in east London,” explains Thomson, who works in fashion.
“I’m really enjoying the local independent shops in the area. There’s a great coffee house across the road which does evening events, and it’s great to have Westfield close by for shopping,” she adds.
Once complete, Upton Gardens will deliver 842 studios, one, two, three-and four-bedroom homes in Zone 3.
The development will also include a library, play areas, several communal roof terraces and a number of commercial units. Call the Barratt London sales team on 0844 811 4334.