London’s top property hotspots revealed by estate agents
Property prices have soared in London, but there are still hotspots available for savvy buyers, according to estate agents.
If you’re looking for an affordable place to buy in London, you’d be forgiven for thinking it is virtually impossible.
Values in the capital have risen by more than £28,000 during the past month, which is more than the amount a typical worker earns in an entire year.
It means even if a buyer has a substantial deposit, an average wage will be insufficient to keep up with soaring house prices as lenders typically only lend three or four times a salary.
So what is the current value of an average home in London? It is now £495,813, up more than 6 per cent during the past year, according to figures published by Zoopla.
Much has been written about foreign buyers and investors driving London’s housing market, particularly in popular, central areas.
But there are still bargains to be found in the capital, according to estate agents.
Yolande Barnes, director of Savills residential research, explains: “If you want to spot where the next price areas in London are likely to be, look for places that are new, novel or next door or a combination of all three.
“By novel, I mean newly fashionable areas, usually pioneered by the ‘creative classes’ of various types, including artists, tech entrepreneurs and even financial creative.”
Yolande goes on to define ‘new’ areas as those seeing regeneration. “Locations surrounding good large development schemes usually see value uplift – provided the nature of the location changed as a result,” she says.
Examples include the Kings Cross development or infrastructure improvements, such as the East London line.
And she defines ‘next door’ as locations with much lower prices than their neighbouring areas, which have ‘a great propensity to rise than those in an homogenous price band’.
Sam Mitchell, regional managing director at estate agents Your Move, suggests buyers look beyond traditional transport hubs, saying: “The whole of London feels like a hotspot at the moment. The rush in demand from first time buyers means that anywhere near good public transport links are particularly in demand – for example Tooting, whereas those trading up tend to look for more leafy opportunities in places such as Twickenham.
“Those looking to try and find more value away from the traditional transport hubs have been buying in places like Crystal Palace which has seen a huge surge in demand.”
Property for sale in Crystal Palace:
Location: Downsview Road, Crystal Palace
Property: Five bedroom bungalow
Canning Town in East London is also increasingly popular among estate agents.
David Karrass, senior branch manager at Haart Plaistow, said: “Canary Wharf is about five minutes away and Liverpoool Street is about 20 minutes.
Nearby is the London Excel Centre, 02 Arena and Westfield Stratford City Centre.
“Added to the convenient location is the relative affordablity. There’s also lots to choose from – luxury apartments, Victorian conversions, Edwardian properties and modern houses.”
“Prices in Peckham have increased quite substantially and in the past year with many properties seeing increases in the region of 30 per cent,” he says. “Good transport links have certainly influenced the areas desirability and the addition of Peckham Rye and Queens Road stations to the East London Line extension has resulted in a change of demographic for the area. City professionals have realised the potential that Peckham offers with good quality property stock available and also good capital growth being seen.
“Good examples which illustrate the strength of the market this year are two homes, both on Sturdy Road, SE15. They both offered three bedrooms, roof terrace, garden and around 1,020 sq ft. One sold for £442,000 and the other for £555,000.
“Our branch has seen an increase in first time buyers of 70 per cent compared to the same time last year as it offers better value for money than its slightly pricier neighbours, Dulwich, Camberwell and Brixton. Prices in SE15 have, however, risen extremely quickly and so most first time buyers tend to be focused on the North Peckham area above Queens Road rather than the more affluent Peckham Rye. Increasingly, they are also considering Nunhead.”
Property for sale in Peckham:
Location: Commercial Way, Peckham, SE15
Property: Three bedroom freehold Victorian terrace
However, buyers ultimately need to purchase a property where they feel most comfortable living, suggest estate agents.
They advise buyers to make a final decision on what property – and area – they like, not because it will make them a lot of money.
Andrew Loveday, sales and marketing director of Countryside Properties, said: “There are not many people who are really happy to live somewhere they don’t want to be just because in a few years’ time it might appreciate quicker in value than a place they’d rather live.”