As you may be well aware by now, across London there’s a strong appetite for property that looks set to continue. With prices rising by some 9.4 percent during the last year according to Knight Frank, it remains to be seen as to whether this trend will reverse any time soon. Politicians from all parties have been muttering about introducing a range of policies to dampen the market at the top end, from Mansion Tax to an end to “land banking”, to a Capital Gains Tax on foreign buyers. However, only time will tell as to what affect this will have on the market.
One thing’s likely though and that’s the growth of prices in Greater London. It’s going to get harder and harder for people to snap up a bargain in the centre of town and they’re inevitably going to be pushed out into the suburbs. The fastest-growing parts of London are likely to be those that are becoming much more accessible due to new transport links. With infrastructure being developed all the time, less upmarket areas could well boom, creating new pockets of wealth.
The new Overground line is a key example. Travel has been much improved, with London consequently much easier to access. The line opened in 2010 and has been massively successful. It’s easy to travel south to north now and property prices have risen accordingly. Take Haggerston, previously regarded as a bit dodgy to say the least. Well, investors in that area have sure had the last laugh, with property up by almost 40 percent since 2007, according to Savills. Those who got onto the ladder early in this part of town are likely chuckling all the way to the bank! Peckham prices have also considerably increased – by more than 25 percent in some areas.
The Overground extends to Barking, Stratford, Croydon, Richmond, New Cross and Watford Junction, and also boasts a central connection to Euston. There are also other large improvements on the way, with the first part of Crossrail expected to open May 2015. From Shenfield and Gravesend in the east, to Reading and Heathrow in the west, the new line’s set to whizz passengers around the capital at 100 miles per hour over ground. The route takes in tourist hotspots such as Bond Street, Liverpool Street, Farrington, Tottenham Court Road and prices have soared in areas previously viewed as less desirable – such as Wood Wharf which is located next to the hustle and bustle of Canary Wharf. As well as this, the Northern Line’s set to be extended to Battersea as part of the regeneration project – although this is still in the planning stage. If plans go through, two new stations will be created, at Nine Elms and Battersea Power Station in Zone 2; potentially by 2020. Prices have already risen by 30 percent during the last five years, so a great investment for those living in the area. And the Thameslink programme, due to be finished by 2018, will make the south east of London more accessible.
With so many railway lines being created all over the UK capital (and let’s not forget mention Crossrail 2, the proposed “Hackney-Chelsea” line which could run from Alexandra Palace in the north east to Wimbledon), it could well pay to get out the map and pinpoint areas near railways if you’re an investor looking for a great return on your money