The preponderance of publicity over the last 24 months exhorting Londoners to abandon ship has left some areas of the capital looking like relative bargains or at least lagging behind widely hyped price rises elsewhere in the UK. Indeed, the average property price in Cambridge is now higher than that of the capital.
Anecdotally, the stress of moving under duress has meant a significant number of those recently ‘lost’ have now returned to areas like Wandsworth, Hammersmith and Fulham. Many buyers have rented for a time in order to attempt a rural purchase before deciding to return. According to data from propertymark, there were an average of 29 buyers for every available property in December, meaning many house searches no doubt ended in vain. Wandsworth, Hammersmith and Fulham all saw quite an uptick in value last Summer – having been flat for a number of years. Much of this restoration has been fuelled by returnees requiring proximity to parks and houses with gardens, which these areas provide in abundance.
The picture is further confused, however, by survey evidence from Moveable that 38 per cent of London residents are now planning to rent for longer in the city in order to buy in the sticks, with 41 per cent of respondents actively planning to buy in the next 12 months.
Are the less obvious areas going to see the same rises despite the continued trend for leaving the city? Since the research suggests that many are holding back from buying in the capital, there could be a window to grab a bargain before some semblance of normality returns. There’s certainly a marked contrast in the city with the countryside where stories of gazumping proliferate. For those willing to look seriously at London, this could be the first time in years that you may feel you’re operating in a buyer’s market.
There would seem to be plenty of properties in Lambeth and Southwark to attract buyers priced out of West London or those looking for an investment. Both boroughs haven’t seen such a quick return to growth; the average value of semi detached houses is around 28 per cent lower in Southwark and Lambeth than Hammersmith and Fulham with average flat prices a full 33 per cent lower. There’s much potential for capital growth and genuine bargains – and, during a time of inflation, bricks and mortar are a good hedge if you can root out the right mortgage deal.
If I was looking to invest some money, perhaps with a view to passing property to offspring in years to come, a flat with some outside space or within reasonable walking distance of a park, would make a lot of sense.
Further afield, you could look at anything near the new Crossrail terminals – both Ealing and Harold Wood are attractive suburbs with plenty of green space who have already seen an uptick in interest as a result of the planned line. You are spoilt for Green Space here – Ealing Common, Walpole Park and Lammas Park form a great tryptych of parks – and easy access West out of London make this a good bet too. Pre 2015 there was a CrossRail bump but since then nominal prices have hardly moved, so it looks to provide good value in the current market.
Further East on the map Harold Wood stands out, with great road links and the CrossRail bonus – more bang for your buck too. With a similar bump to Ealing now passed, the new focus on housing to the East of London could yield an even better medium term return.
Whatever it is that tempts you, only a fool would bet against the longterm value of owning property in the Capital.
Properties for sale now
£750,000 6-bed family home in Bartholomew Drive, Romford, RM3, Harold Wood
£499,950 2-bed flat in Ealing Common
£750,000 2-bed flat in SE1, a stone’s throw away from the Thames
A £550,000 2-bed apartment in Herne Hill
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