Where should you invest in property in 2016?
Crossrail – Europe’s largest infrastructure project – isn’t actually due to launch until 2018, but the new railway is already creating hotspots along its route. We expect property prices in Acton to have risen by up to 20% by the time the east-west line is complete.
A £50 billion high speed rail line (HS2) is also being built at nearby Old Oak Common, connecting the HS2 line to Crossrail and the Great Western Main line, and providing opportunity for regeneration of the area. This regeneration and infrastructure improvement will undoubtedly have a positive effect on the surrounding areas, and further push up prices in Acton.
Tottenham Hale is fast becoming a first-time buyer haven. It is one of London’s most affordable areas, (a 1 bedroom property would cost around £300,000 or £1,400 per month), it’s being smartened up through regeneration, and the area is blessed with great transport links.
But the main reason Tottenham Hale is enjoying hotspot status is because it’s undergoing a transport revolution, with £110 million being invested in a new Tube, rail and bus station. Tottenham Hale is also on the preferred route for Crossrail 2, which if granted, could see property prices rise by a further 10%.
Archway is still relatively cheap when compared to its north London neighbours, but we expect prices to increase by at least 5% this year. This is because TFL have recently begun a £12.8m radical transformation on the area, removing the one-way system and replacing it safe cycle lanes, improved pedestrian crossings and a new public piazza.
King’s Cross has transformed into a hub of commercial and cultural activity in recent years, due to considerable rejuvenation and a large number of investment projects taking place in the area by the station.
Property prices are beginning to reflect the area’s increasing popularity, and flats in the recently completed Plimsoll Building are selling upwards of £1,400 per square foot, which is a record high for the area. This is also having a positive ripple effect on the surrounding areas: Caledonian Road, Angel, and Bloomsbury.
There are still many opportunities to invest with a view to solid capital growth during the next 5-10 years as further projects are completed, including Google’s headquarters, the large Francis Crick Institute medical research centre and various other head offices for well-known brands such as New Look. We also anticipate that the demand from professional tenants for high quality housing in the local area will sky rocket as a result of the new jobs generated.
Elephant & Castle
Elephant & Castle is currently undergoing a £3 billion redevelopment, which will see the Heygate council estate and the eyesore shopping centre demolished to make way for 1,200 new homes and almost 2,500 new apartments and shops.
We expect property and rental prices to slowly increase in the area as a result of this regeneration, and we also expect the new luxury developments to attract a younger, more affluent demographic to the area.
Battersea is set to get the Tube, with two new stations planned to be built at Nine Elms and Battersea Power Station by 2020. The longer-term intention is to extend the Northern line to Clapham Junction, which will further increase property prices in the area.
Nine Elms and the new build market in Battersea has taken a bit of a hit recently, possibly as a result of an influx of new builds being offered to the market at once. This is however having a positive outcome for pre-owned homes – specifically anything that’s older than 50 years. The investors who cannot afford the new build stock are buying up the older stock in anticipation of long-term capital growth in the area once the new build projects have been finished.
Despite Nine Elms taking a bit of a hit recently, nearby areas Oval and Stockwell have really benefited from being within close proximity to the regeneration zone. Both areas have fantastic transport links, and have recently seen an influx of new amenities in the form of shops, bars and cafes.
Streatham is affordable (especially compared to its expensive neighbours Clapham and Balham), plus it offers great transport links to London Victoria and good schools.
It’s for these reasons that homebuyers are being drawn to the area in large numbers, and property prices in the area are up 10% in the last 12 months. We expect prices to rise by at least 5% in 2016.
Streatham Hill is also fast-becoming a buy-to-let hotspot, and a landlord can expect a high yield of 4.4 per cent in the area. Check out the Portico rental yield map to get an indication of potential rental income at the click of a mouse.
Brixton first became popular because it was a cheap alternative to Clapham, but now both renters and homebuyers and are moving here because it’s a fantastic area in its own right. It’s one of the most gentrified places in the capital, jam packed with trendy bars, cafes and restaurants. The average price of a 1 bedroom property in Brixton now sits at £400,000, and we expect prices to rise by a further 5% this year.
Article Courtesy of: Portico