Trends in the London property market – which areas offer the best return?

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  • Recent studies show Camden, Southwark, Islington, Hackney and Newham are the London boroughs with greatest property market growth
  • Easy access to Central London combined with cheaper house prices make these areas attractive to home-buyers and investors alike

As we enter a new calendar year, it’s a good time to look back over 2017 and forward into the future, identifying recent trends and considering how they benefit investors in the London property market.

A key trend to keep an eye on is growth in the outer London boroughs, some of which could expect to see house prices increase by over 30% across the next ten years, according a recent study by CBRE.

Our estate agents at Henry Wiltshire’s Bow office explain more. “People buying property in London, whether they’re looking for homes or buy-to-let property, are showing a considerable interest in East London and boroughs such as Hackney and Newham. They’re attracted by the lower house prices, and can also be quietly confident of a good return on their investment.

Market growth slows in high net worth property market

In former times, prime central London property was seen to be the area seeing the highest growth and generating the best returns. However, prime central London property is an asset class all its own, with the majority of its investors living overseas. Overseas investors appear to be responding to Brexit and the UK general election in 2017, buying fewer properties in the prime central London market. When overseas investment slows, the results reveal themselves through the high net worth property market.

Meanwhile, in the less expensive London housing to be found in travel zones 2, 3 and 4, investment from UK buyers continues apace, unaffected by the issues that steer overseas investment.

Which areas offer the best return on London property investment?

The regeneration of Elephant and Castle looks likely to bring a great deal of investment to Southwark.

The CBRE study reveals Southwark, Newham, Islington, Hackney and Camden as the five boroughs with the highest projected growth over the next ten years. Southwark is just a stone’s throw from the City of London, while its riverside location makes it ideal for luxury developments. At the affordable end of the scale, the regeneration of Elephant and Castle looks likely to bring a great deal of investment to the borough.

Hackney, Islington and Camden also offer great proximity to areas of London like the City and the West End where people are likely to work. In Newham, the Olympic legacy continues, while good transport links allow residents a winning combination of lower house prices and short journey times to Central London. See our properties in the Newham districts of Stratford, Canning Town and Olympic Village

Buy and sell property in Bow

Henry Wiltshire prides itself on extensive experience in the London property market, as well as outstanding local knowledge. If you’re hoping to move to Bow, or have property to sell in the E3 area, contact the team at our Bow office today.

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