London Sights: Knowing The City’s Hotspots
Everyone’s bored of Brexit talk, so let’s refocus our attention on the important fundamentals of investing in London property and determine what makes the hotspot locations that investors are eager to take advantage of. We’re talking accessible transport links, dynamic cultural scenes, expanses of green space, new shops and bars and revamped social hubs to create communities. To give a few examples, here’s how Hackney, Shoreditch, Whitechapel and South Bank are illustrating the definition of “hotspot”.
Hackney and Shoreditch
East London has outperformed other areas in the last five years, according to CBRE, with prices in places like Newham and Bexley growing as much as 49% whilst Chelsea and Fulham have experienced price falls. Over the last decade, Hackney has greatly increased in popularity, with house prices rising by an astonishing 568 per cent since 1998. Savills has suggested that this has been a result of rising prices in the surrounding areas, but Hackney has also seen a number of new shops and bars, making the area more accessible and attractive to buyers. The East Rail Line makes journeys to Liverpool Street fast and easy, and Victoria Park provides the area with beautiful lakes, greenery and fountains. With everything on the doorstep, it’s no wonder that everyone from business professionals to families are jumping at the opportunity to get in on the action.
As well as its basic fundamentals, Hackney and Shoreditch are known for their ‘coolness’, with tech workers and creative young people improving the reputation of areas that were formerly a bit more rough around the edges. Festivals and cultural events have attracted a young demographic, bringing with them a dynamic energy that will see East London bloom with vibrancy and culture.
Whitechapel
Regeneration zones, such as Whitechapel, provide a worthy motive to invest in an area. When areas are transformed and communities can flourish in beautiful new social spaces, house prices are triggered by this blossoming of life and culture, leading to a domino economic effect. Whitechapel, for example, has its own Crossrail station that will function as an interchange for the Hammersmith & City and District lines and London Overground. Its £300m regeneration plan, “Whitechapel Vision”, is expected to create 3,500 new homes and 5,000 jobs by 2025, and with Crossrail expected to open in 2020, Whitechapel is undoubtedly a hotspot set to prosper. The Elizabeth Line will run through central and east London, stopping at locations including Whitechapel and the Docklands. It is set to halve journey times across the capital.
South Bank
South Bank is both a cultural district and a business one. With the Thames, Big Ben and Covent Garden a short walk away, the area thrives off the lively city vibes. Like Hackney and Shoreditch, South Bank hosts a number of arts and culture events, always buzzing with activity, and families benefit from picnic areas and walking routes, whilst young people enjoy the selection of quirky cocktail bars and music events. Not only does it have the dynamic atmosphere, Waterloo Station, the UK’s largest train station, is located in South Bank, and the London Underground has stations from west to east, at Westminster, Waterloo Station, Embankment, Blackfriars Station, Southwark, London Bridge and Canada Water. The average sold price in South Bank has increased by over 60 per cent in the last 4 years, according to Foxtons, whilst sold prices in Chelsea have increased by less than 30 per cent.
So, what makes a London property hotspot?
The fundamental characteristics of an area set to grow and provide the highest yield are:
transport links,
modern social spaces, shops and bars,
cultural events that are accompanied by a young, dynamic demographic,
job opportunities and growth, and
parks and green spaces.
Government planning and regeneration projects are key signals for future growth and a way to get ahead of the game when it comes to investing smartly.
In all this frustrating political news, it is time to shift our energy onto the key aspects of a good investment so as to focus on the positives of a strong and reliable capital city that will always have its hidden gems and treasures waiting to be discovered.
