A new poll of property market economists by Reuters sees “negligible” movement in the London homes market over the next 12 months and growth at under the national average over the following two years.
The survey looked at the UK and London markets and asked the industry experts on their opinion of potential performance over the medium term. While on a national level, rises of 2.5% in 2017, 2.3% in 2018 and 3% in 2019 were forecast, London prices are expected to rise by just 0.3% on average this year and then by 2% and 2.5% over the next two years respectively.
“Prices appear to have stalled over the past seven months, which raises a question of the extent to which the EU vote has had an impact on the market,” said Peter Dixon, UK economist at Commerzbank. “It is not yet showing up in the annual growth rates but it is evident in the quarterly numbers. The lack of supply has been the biggest problem in the housing market for many years and I have no reason to suppose this will change in 2017. Brexit-related uncertainty will remain a problem but I do not expect this to do more than take the edge off the price inflation rate.”
Oliver Jones, economist at Fathom Consulting, told Reuters he thought that prospects for investors werestrong over the next few years: “In the medium-term, foreign investors looking for a rental yield are likely to face an attractive prospect. Weak real income growth and higher unemployment will reduce the ability to get mortgages, propping up rental demand. Despite small curbs to the buy-to-let industries, foreign cash-buyers of properties to let are likely to face reasonably strong demand combined with further falls in sterling.”
The WhatHouse? team picks our top new build homes for sale in London across a wide budget range:
Vyn Yard in Bethnal Green, Tower Hamlets (Aitch Group)
This developer has worked on numerous projects in East London, and this latest release will bring a further 23 units to the market in this lively part of the capital, with a reputation as a creative quarter, and buyer interest has already been strong even prior to launch.
Scheduled for completion in June this year, Vyn Yard offers a mix of one- and two-bedroom apartments and duplexes in a building with an industrial styling to reflect the history of the area. Sized from 524 sq ft to 1,062 sq ft, these properties come with underfloor heating, German kitchens and a Sonos audio, with private balconies and a communal roof terrace from which to enjoy views across London.
Julie Buck, sales and marketing director of Aitch Group, says: ‘‘Vyner Street is one of the most exciting roads in the area and it has a unique standing within the creative community. We wanted the development to reflect the heritage of the street and the surrounding area, and we feel we’ve achieved this at Vyn Yard. The phone has been ringing non-stop with interest coming from locals and from other parts of London. We are not surprised that the location of the development, coupled with its fantastic design, is appealing to a range of potential buyers across the property ladder.’’
Prices: From £465,000
Find out more at www.thevynyard.com ; 0330 221 1104
West Park Quarter in Acton, Ealing (Countryside)
The remaining four-bedroom townhouses at West Park Quarter are just a part of the major regeneration Acton Gardens project, which is transforming 52 acres of a well-connected part of west London with communal facilities, shops, a medical centre and numerous new parks and public spaces to complement some 2,500 new homes.
The townhouses offer 1,400 sq ft of interior space arranged over three floors in a contemporary styling inside and out, include high-gloss handle-less kitchen units, stone worktops, and chic bathrooms and en suites. The properties are likely to appeal to buy-to-let investors as much as to owner-occupiers looking for a family home in the area, with nearby Acton Main Line station on the Crossrail route from 2019.
Matthew Higgs, managing director of developer Countryside Partnerships South says: “Our goal is to create a place people love and want to live in and this is the last chance in this phase to own a house on this exciting, large development. As each month goes by, the fantastic sense of community strengthens, giving the feeling that this is really the start of something special for Acton. The area is very up-and-coming and as Acton Gardens continues to grow, many buyers could also benefit from the financial returns that come with getting in early at a game-changing development.”
Prices: From £850,000
Find out more at www.actongardens.co.uk ; 020 8993 6923
St John’s Way in Battersea, Wandsworth (Peabody)
With a reputation as one of London’s finest and longest-established housing associations, Peabody is building a flagship scheme of modern new homes at St John’s Hill, just minutes from Clapham Junction station, with this latest collection of Shared Ownership apartments just released.
The mix of two- and three-bedroom properties has appeal to young professionals and families alike, and are available to those buying their first home or re-entering homeownership.
Sarah Butler, sales and marketing director at Peabody, remarks: “We are proud to offer these beautiful new Shared Ownership apartments at St John’s Way. The homes offer first-time buyers the opportunity to share in a part of Battersea whilst enjoying the luxury of sleek, modern living.”
The entire development will bring 538 new homes to one of London’s best-connected areas, with numerous National Rail, Overground and bus routes centred on Clapham Junction, and tube lines running through the surrounding area.
Prices: From £180,000 (25% share)
Find out more at stjohnswaysw11.co.uk ; 020 7021 4842
And here are more Shared Ownership developments in London
500 Chiswick High Road in Chiswick, Hounslow (Redrow Homes)
This development is bringing a wide array of property types to this popular part of west London, with 59 apartments, seven penthouses and five townhouses in all. The development features a landscaped courtyard and offers residents a concierge service and secure underground parking.
Three studio apartments and 22 one-bedroom apartments are now available under the government-backed Help to Buy London scheme, which requires buyers to provide just a 5% deposit and receive a 40% equity loan, meaning they just need to find a 55% mortgage.
These high-specification homes are perfectly located for Chiswick’s renowned collection of shops, cafés and restaurants, as well as being well connected to the area’s many transport links, including Chiswick Park tube station just four minutes’ walk away.
Prices: From £595,000
Find out more about 500 Chiswick High Road from Redrow Homes
Lexicon in Harrow on the Hill, Harrow (Fairview New Homes)
The former library site is being transformed with the arrival of 230 new homes, with the first now released at the Austen House phase.
The development will comprise studio, one-, two- and three-bedroom apartments located a five-minute walk away from Harrow-on-the-Hill station (connected by Tube on the Metropolitan Line and by National Rail on the Chiltern Line) and a four-minute walk from Harrow town centre.
Jim Holliday, sales and marketing director for Fairview, says: “We’re pleased to release the first apartments for sale at Lexicon. This development will provide quality studio to three-bedroom apartments, all with a private balcony or terrace, in an excellent location. Building work is underway on site, with our first residents set to move into their apartments in summer next year.”
Prices: From 359,000
Find out more at www.fairview.co.uk ; 020 3432 9106 (Fraser and Co)
Caspian Quarter at Barking Riverside, Barking & Dagenham (Bellway)
Properties in this part of east London has seen some considerable price growth in recent years, with the Barking Riverside regeneration scheme at the forefront of major change in the area. It is a 20-year project to bring thousands of new homes to the borough as well as a host of updated amenities
This part of the development site is offering one-, two- and three-bedroom apartments with the added benefit of being available with Help to Buy London, so a deposit of just £12,000 can now secure a home here.
“We are very proud to be part of this award-winning regeneration project that is improving the area around Barking Riverside,” says Gemma Bannister, divisional sales manager at Bellway Homes Essex. “I have no doubt that this area is going to go from strength to strength over the next decade. The council are determined to upgrade schooling, improve health and wellbeing. They are also intent on ensuring that communities can thrive by investing in homes. This mirrors our ambitions for the area and the prospect of a railway extension in the future this will undoubtedly raise the areas wealth and profile.”
Transport links are already good, with District and Hammersmith & City line Tube services already serving the area and Overground and National Rail services linking to areas as diverse as Fenchurch Street, Gospel Oak and Shoeburyness.
Prices: From £244,995
Find out more at www.bellway.co.uk ; 01245 989989
Royal Albert Wharf in Royal London Docks, Newham (Notting Hill Sales)
There’s currently a special deal on these Shared Ownership homes, with buyers who complete their purchase within eight weeks of reservation receiving a £2,000 contribution towards their legal fees.
Simon Neary, head of sales and marketing at Notting Hill Sales, says: “With house prices in the capital rising as fast as they are, property hunters in London are finding the market more and more difficult to negotiate, especially when having to also budget for additional costs such as stamp duty, legal and mortgage fees, as well as finding the initial deposit. Shared Ownership is a great option for those struggling to get a larger deposit together, by purchasing a smaller share of the property value. Added to that our offer of £2,000 towards legal fees takes some of the financial pressure away from buyers, meaning one less thing for them to think about.”
Located just a few minutes’ walk from Gallions Reach DLR station, this collection of two- and three-bedroom apartments offers a mix of layouts to suit a range of tests and budgets. All buyers can expect to find full-height windows and doors, private balconies, fully fitted designer kitchens carpeted bedrooms, and stylish bathrooms.
Prices: From £107,500 (25% share)
Find out more about Royal Albert Wharf from Notting Hill Sales
Millbrook Park in Mill Hill, Barnet (Taylor Wimpey)
The four-bedroom ‘Rocky’ show home is also now available to reserved, priced at £900,000, a price which includes a collection of contemporary furniture and a landscaped garden.
Taylor Wimpey’s part of this major development includes a selection of house designs, all set out over three storeys, with terraced, semi-detached and detached options, as well as a number of apartments.
Jack Costello, sales and marketing director for Taylor Wimpey North Thames, says: “The outstanding houses at Millbrook Park are ideally suited to home-hunters who want to enjoy flexible three-storey living within easy reach of central London. We have a fantastic choice of three-, four- and five-bedroom designs to choose from and they all include spacious interior layouts and a luxurious specification. Anyone looking for a bigger and better property in this highly-desirable part of London should visit Millbrook Park without delay to see what we have to offer.”
The site is open daily from 10.00am to 5.30pm (2.00pm to 5.30pm on Mondays).
Prices: From £415,000
Find out more at www.taylorwimpey.co.uk ; 020 8236 3800
Upton Gardens in Upton Park, Newham (Barratt London)
The site of the former West Ham United football stadium is being transformed into 842 studios and one-, two-, three- and four-bedroom homes, situated just a short walk from Upton Park Underground station and within easy reach of the post-Olympic legacy of Stratford.
The development will organise the homes in 18 buildings, ranging in height from three to 13 storeys, set around three large gated communal gardens, several new tree-lined streets and a ‘legacy route’, which will celebrate the history of the ground. In addition to these hundreds of homes, the regeneration will also include commercial units, a library, and several play areas and communal roof terraces.
Pam Reardon, sales director of Barratt London, says: “A great deal of thought has gone into the design of Upton Gardens to ensure the legacy of the site… is preserved. Newham is an area undergoing a huge amount of regeneration and there is still a great deal going on so this represents a viable investment opportunity as well as a great location for owner occupiers. The development has excellent connections into central London, and we expect strong interest from commuters looking for good value and a fast route to work. We believe the development’s proximity to Stratford and its amenities will also appeal.”
Prices: From £350,000
Find out more at firstname.lastname@example.org
Camberwell on the Green in Camberwell, Southwark (Frasers Property UK)
This six-storey building is located overlooking Camberwell Green and will provide 96 studio, one-, two- and three-bedroom apartments in a building designed by award winning architects careyjones chapmantolcher to maximise the benefit of views of the green.
The building has expanses of glazing, bronze metal panelling, brickwork, balconies and rooftop terraces, and will offer over 14,000 sq ft of retail space on the ground floor.
The area is well known for its connections to the contemporary art world and to London’s thriving food scene, and has long benefited from a cosmopolitan mix of residents from around the world.
It is a well connected area, with plenty of transport links including bus services to places such as Denmark Hill, London Victoria, London Bridge and Vauxhall. Proposals to extend the Bakerloo Line from Elephant and Castle towards Bromley may also include a new station at Camberwell.
Prices: From £405,000
Find out more at www.camberwellonthegreen.co.uk ; 020 7368 4830 (Marsh & Parsons)