Traditionally, property investors have flocked to London’s prime areas to take advantage of the largely consistent market in the city centre. Well-located and notoriously affluent, Chelsea, Mayfair and Kensington have been the regions of choice for buyers, even throughout the recent economic recession, when properties in these locations continued to perform well.
Now, however, investors are taking their capital further afield as demand for property grows in areas of the city that were once deemed less popular.
Demand is moving out of the city centre
High competition in the centre of London drove up property prices in outer boroughs such as Islington, Shoreditch and Fulham. The invisible band circling the city’s ‘high price zone’ has widened, pushing buyers into districts that are still well connected but offer better value properties. The question that forward thinking investors need to ask is this: which areas are likely to be in demand as this trend continues?
Monitoring the behaviours of London’s homeowners
The key to predicting the twists and turns of London’s property market is to think like a domestic buyer. Whether they’re simply looking to relocate or are keen to get their foot on the property ladder, the behaviour of London’s Joe Public will unlock the areas that are going to offer the best opportunities to property investors.
It’s important to understand where people are choosing to live, and why they’re attracted to that particular area. A location with reliable transport links will be favoured by commuters and city lovers – perhaps career driven couples, or young professionals. Boroughs with access to excellent facilities and amenities will entice those who can’t afford to live centrally but still want to enjoy a high standard of living, like young families, or perhaps active retirees.
Which areas of outer London are likely to offer the best value to investors in the near future?
Government funded regeneration programmes are often assigned to up-and-coming areas, so can be a good indicator of a borough’s worth. The Southeast Quarter, namely Greenwich, Lewisham, Bromley and Croydon, is undergoing extensive development in the next few years, making it a shrewd target for property investors. Properties are also predicted to be in high demand in areas that are going to be serviced by the new Crossrail line – when works begin in 2018, opportunities will arise in Ilford, Tottenham Court Road, Slough and various other rail station sites.