Where should you be sinking your money?
If one of your New Year’s resolutions was not to covet the good fortune of others, then you’re in luck.
London’s prime property market centred around Kensington and Chelsea and Mayfair – which has seen outright dizzying growth in recent decades – is still expected to keep going through the roof. But it will now do so less quickly, while other areas start to catch up, pick up the slack and become increasingly desirable in their own right.
This is great news for all of us who have long been pushed out of London’s more affluent property pockets and fantastic news for anyone wishing to invest – if you’re lucky enough to have the cash to put down that crucial first deposit that is.
According to new research by Savills, some boroughs will see their property prices soar by more than 25% in the next five years, and not all of this will be necessarily where you would expect.
Neal Hudson, from Savills Research says:
“House price growth over the next five years will continue to be driven by the Prime Central London markets with spill-out demand driving strong price growth in surrounding boroughs, as has been seen in Fulham and Wandsworth, for example,” says Neal Hudson, housing market analyst for Savills Research.
“The expectation is that the ultra prime hotspots and high spec new developments will continue to set records and possibly exceed the prime central London forecast. There will also be some localised outperformance by areas benefitting from regeneration schemes, for example Crossrail, and the regeneration of Nine Elms (where off plan sales at Embassy Gardens have been incredibly successful), the White City regeneration of the BBC site and the Euston/Kings Cross masterplan.”
Here are 15 top growth hotspots:
1) Westminster – Westminster will see property prices rise by 26.5%. No surprise there! After all, this is where the Parliament, Big Ben and Westminster Cathedral is.
2) Kensington and Chelsea – The Royal Borough may have lost out to Westminster, but huge demand from overseas buyers means it is not giving up the property limelight quite yet. Property prices here will go up 25.6%.
3) Hammersmith and Fulham – the traditionally more affordable alternative for Kensington and Chelsea wannabes looks set to become a desirable hotspot of its own. Property prices here will go up by 23.7%.
4) Camden – The market may have burnt down, but Camden’s property market is still red hot, rising by 23.5%.
5) Islington – Yummy mummy central, will get even yummier as home prices increase another 23%.
6) Hackney – Once frowned upon and mocked as “Whackney”, the East London borough has been the poster child of East London’s regeneration and gentrification. And the trend shows no signs of slowing, with prices up 21.9%.
7) Wandsworth – It might not have a tube yet, but with the Northern Line extension expected to open there by 2018, there really is nothing stopping Wandsworth soon rivalling its neighbours north of the river.
8) Southwark – It had the Globe, then it had the White Cube and now it has the Shard too. This spot south of the river is quickly becoming one of the most hotly sought after London areas. Better get there quick before prices go up by another 21.5%.
9) Lambeth – From Brixton to the edges of the South Bank, Lambeth houses a real mix of the best that South London has to offer. And the property price increase isn’t too shabby either. It is expected to rise by 21.4%.
10) Richmond upon Thames – Beautiful, sleepy riverside locations are expected to become a rage as this outer London borough sees prices soar by 21.1%.
11) Haringey – Boasting Alexandra Park, the Alexandra Palace and Tottenham Football Club, this north-east London borough is a real mishmash of plush and poor but that means that the growth potential is at an impressive 21.1%.
12) Brent – Home of Wembley Stadium and hence much of London’s football, sporting and music fanfare, Brent property is also on the up, climbing by 20.8%.
13) Barnet – This family friendly north London borough seems to mark the new coveted outer rim of north London, with property prices increasing by 20.7%.
14) Merton – Is more than just the place to be in summers, when everyone descends down on Wimbledon for the tennis and the post-match festivities, it is a much loved property hot spot which will see prices rise 20.6%.
15) Harrow – Haaaaarrrroooowww dahhhhling, is maybe best-known for its boys boarding school, but it is also a potential property bombshell waiting to happen. Affluent foreign buyers love it for the extra space and privacy, as well as the education and investors should learn to love it too as prices rise by 20.2%.