In a constantly evolving city like London it can often be difficult to keep abreast of all the latest property investment opportunities. With seemingly perpetual delays to Crossrail and the on-going uncertainty surrounding Brexit, at first glance, now could be seen as a problematic time to invest in London property.

However, taking a closer look at the capital reveals a city brimming with large-scale investment and exciting regeneration projects. Billions of pounds of domestic and foreign investment are currently being pumped into many parts of London.

These auspicious ventures are a testament to the durability of the capital’s property market and a significant vote of confidence by investors in London’s ability to weather most storms.

With 2020 just around the corner, we have chosen five of the most promising areas of London for property investment heading into the new year and beyond.    

Hackney

Despite being one of London’s trendiest hotspots, Hackney is no superficial flash in the pan. Bolstered by the economic hub of Tech City, Hackney has been the go-to choice for many of the city’s fastest-growing digital companies.

Jennet Siebrits of CBRE expects to see GDP in the Hackney area to grow by 18 percent over the next three years, making it the fasting-growing borough in all of London. “Hackney is one of the biggest success stories of the regeneration of the East End of London”, Jennet explains.

As well as being a burgeoning digital hub, Hackney is now well connected to the centre and rest of town with the opening up of the East London line. Great transport links, plenty of green spaces and with cheaper properties than neighbouring Islington, Hackney attracts a variety of Londoners from city workers to young families.

The average asking price for a property in Hackney is currently around £626,095, which, despite being 4.9 percent lower than it was a year ago, reflects a staggering 568 percent increase since 1998!

With multiple development projects that will see thousands of new homes built in the borough (including 5,500 new homes with the Woodberry Down development alone), Hackney is up and coming and showing no real sign of slowing any time soon. 

Canal boat in front of graffitied factory building in Hackney

Whitechapel

With its enviable Zone 1 location, Whitechapel is by far the most affordable area in central London to get a Crossrail station. And while it may still be some time before the ribbon is cut on the Elizabeth line, astute buyers would do well to take advantage of Whitechapel’s potential now.

Tower Hamlets council believes that there is potential to build 3,500 new homes in this small but historic area. As well as L&Q and Mount Anvil’s £90 million redevelopment project, The Silk District, Whitechapel will benefit from a £300 million science research campus that is being built for Queen Mary University of London. 

Despite sustaining heavy damage during the Blitz, many of Whitechapel’s historic buildings survive to this day. Properties vary from charming Georgian terraces to plush new-build flats, reflective of the district’s historic yet modern edge.

Average house prices have remained relatively stable over the past year, currently at £728,649. This is up 8% on 2016 prices and, according to research carried out by JLL in 2018, is likely to increase by 15 percent by 2022.  

Wool House converted factory building in Whitechapel

Battersea

While Battersea is not the most affordable location on our list, its central location and upsizing potential make it a great choice for Londoners looking to start a family.

Battersea Park, with its children’s zoo, boating lake and pagoda, make this area a great location for those needing close proximity to the city coupled with enough tranquil, open spaces to escape from the hustle and bustle of London life.

The Battersea Power Station development dominates both the skyline and investment scene in this part of town. The £9 billion revamp is set to create 4,239 new luxury homes, from £800,000 studios to £4 million four-bedroom flats (prices for the three sought-after penthouses have yet to be announced).

Looking at prices for the area as a whole, the average price of property is £873,559, which is 4 percent down on 2018 and similar to prices seen in 2016.     

Redevelopment work on Battersea Power Station

Kilburn

A more affordable alternative to nearby Hampstead and Queen’s Park, Kilburn is undergoing a colossal £600 million makeover that aims to reinvent the once run-down district and elevate it to the levels of its much coveted neighbours.

The focal point of this regeneration is the South Kilburn estate: a brutalist relic of 1960s council housing whose concrete towers had fallen into disrepair. This ambitious project will replace the estate with 2,400 new homes designed by some of the UK’s top architects, giving the area a much-needed injection of modern, stylish property to buy, rent or for shared ownership.

This project is sure to drive further investment in Kilburn over the coming years and the prudent investor is well advised to get in early before demand and property prices begin to soar.

When it comes to accessibility and affordability, it’s hard to beat Kilburn inside of Zone 2. Its proximity to the City is one of its most attractive assets, being within walking distance of Regent’s Park and only a ten-minute tube ride from the West End.

The average price of property in Kilburn is currently £662,071, making it significantly cheaper than the surrounding areas of Brondesbury (£823,764) and South Hampstead (£837,797). Overall sold prices are now at 2016 levels, having fallen by 3 percent in the past year.

White terraced London house with yellow front door

Richmond

The only London borough to straddle both sides of the Thames, Richmond is arguably the most scenic and affluent suburb in the city. With over 100 parks and green spaces, 21 miles of picturesque river frontage and world-famous attractions such as Hampton Court Palace and Kew Gardens, it’s easy to see why Richmond has some of the most sought-after property in London.

While all of this protected greenery makes new developments hard to come by, there are some exciting smaller property schemes such as the luxurious Richmond Brewery Stores apartments.

This leafy suburb has no shortage of beautiful, classic properties but they do come at a price. The average property price in Richmond tips over into the seven-figure threshold and is currently at £1,029,723. Bucking the general London trend, sold prices in Richmond have increased by 17 percent in the past year, a strong indicator of the robustness of the borough’s property market.

Rowing boats on the Thames river by Richmond Bridge

As you can see, there is no shortage of great places to invest in London property as we head towards 2020. Wherever you decide to buy property, or if you’re living in one of these areas and looking to sell up, it’s imperative that you find the right estate agent. At Helmsmen, we handpick the most relevant and experienced person for your needs so you know you’re getting the right agent.           

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