If you are a buy to let investor or looking to make your first property investment in London, keep watching this video as I am discussing the top 3 areas within London which will see steep growth for a minimum of 5 years as well as attractive rental potential.
Historically, The highest house price growth can be achieved within London’s regeneration zones. Research over the years shows that the annual price of new homes within regeneration zones is significantly higher than in other areas in London.
The first is Whitechapel.
On the cusp of Zone 1, the 300 million pound masterplan of the regeneration dubbed “ The Whitechapel vision’ focuses on creating London’s ‘ Med City’ , rejuvenating the high street and creating green spaces and squares for the public to enjoy. It includes first class educational and research opportunities starting with the further development of Queen Mary Medical School. Health, Bio-Tech and Life Sciences, are regularly cited as sectors which will play an important role in the future of the UK economy- and Whitechapel will be the hub.
Within the recent years a number of changes within the locality can be seen, such as the arrival of The new Royal London Hospital and the London Overground line. The most prominent is of course the opening of the new Crossrail station at Whitechapel connecting London from West to East.
London centre is slowly moving east, and Whitechapel is set to become a key London destination.
With these changes in mind investors and savvy buyers who buy now can capitalize on getting in before the growth curve and therefore increasing their rental return.
The second area is Vauxhall in the Nine elms area by the River Thames.
Its huge regeneration in a Zone 1 location bordering prime Central London puts it squarely in the top three areas to invest in London. With 3 tube stations in the area, it is a perfect location for a short commute to both work and major shopping districts with Oxford Circus only 8 minutes away.
Westminster lies directly opposite on the north bank of the Thames. It is by far the largest regeneration zone in central London and includes the last remaining industrial stretch of the South Bank. It is even larger than the country of Monaco!
This prime, central London location has attracted billions of pounds of private sector investment and an area-wide regeneration plan that’s transforming the area on an extraordinary scale as an internationally significant business district and a new centre for arts and culture in London. It will offer life changing opportunities to the area’s existing residents and will become home to another 30,000 people.
It will be part of a modern, exciting destination in central London with 20,000 new homes, 25,000 new jobs (post construction), and lots of green spaces and high profile visitor attractions.
Vauxhall is being dramatically remodelled to create an attractive and pedestrian friendly environment with new and improved public spaces and better links to the river. Soon, London’s skyline will have a number of additions and architectural icons.
A whole new town centre will be built around a redeveloped Battersea Power Station, New Covent Garden Market will be revitalised and the new US Embassy officially opened in 2018. More than £1 billion is being spent on new infrastructure including two new Tube stations and the creation of a new linear park sweeping right through the district from east to west.
Whilst the broader area of Nine Elms has seen huge capital growth over the last decade, Vauxhall in particular is just starting to see its prices increasing and this makes it a fantastic opportunity for a buy to let investment.
The third top place to invest in London is within the Park Royal/ Acton regeneration in Zone 2 West London.
Park Royal and Acton are at the centre of a masterplan which is set to deliver growth which will encompass 1600 acres of business district. This is the largest regeneration of its kind in the UK. It will be the small and medium business hub along with the headquarters of several large companies already present there. There is an ongoing £26 billion redevelopment of West London after the recent expansion and growth of Westfield Shopping Centre. Imperial college has a brand new massive campus next to Westfield This is also fueled by £100 billion invested in HS2 North. Old Oak Common station will be a £1.3billion fast track interchange, the only high speed interchange in the UK. It will be the only hub where HS2, Crossrail, Great Western Mainline and Overground services connect, with the new interchange accommodating around 250,000 passengers daily – comparable only to London Waterloo. HS2 will provide up to 18 trains per hour between Old Oak and the North – putting Birmingham at just 31 minutes travel time.
Park Royal and Acton’s populations will grow exponentially as historically they have been residential and warehouse areas. They will see rapid population growth as the new infrastructure and amenities are completed, rising from 4,000 to an estimated 60,000 residents by 2047
With so much scope for growth and the interchange being in the middle, you can expect that prices in the area will explode over the next few years.
This wraps up the 3 places I will be encouraging my international clients to invest in 2021 for exponential long term growth and rental potential.