Top areas in London for property investment

Landlord Expert
By Landlord Expert July 2, 2014 01:19

Most boroughs in London have performed exceptionally well over the last year according to latest Land Registry figures, but which ones are topping the list?

The newest figures have reported annual price rises ranging from the bottom of the scale at6.1% in the borough of Redbridge, to the top of the scale at 26.2% in the borough of Waltham Forest, both of which are situated in north-east London.

Within the top performing boroughs are areas which have seen remarkable activity and interest, each experiencing significant growth in prices as a result of high demand.

We’ve analysed several of our branches which fall within these boroughs, to see why they are some of London’s most in demand locations.

Islington, N1, London Borough of Islington – annual price increase 18.7% (Source: Land Registry, April 2014)

James Marshall, Sales Manager at our Islington branch, comments: ‘Over the past few years, Islington has become one of the most popular areas in London, with property prices rising by as much as 20% annually.’

  • Islington has excellent transport links, including Highbury and Islington overground and tube station, and Holloway Road, Caledonian Road and Arsenal tube stations.
  • It appeals to many young professionals, overseas buyers and families, who all love it here.
  • Redevelopment of the surrounding areas has attracted many investors, foreign buyers and cash buyers, which make up 20%15% and 25% of our registered buyers respectively.
  • Stoke Newington offers buyers a good selection of properties at a slightly lesser budget than central Islington, with prices around 20% less.

Peckham, SE15, London Borough of Southwark – annual price increase 20.9% (Source: Land Registry, April 2014)

Jason Davis, Sales Manager at our Peckham branch, notes: ‘The growth of inner city villages such as Bellenden and Nunhead have greatly increased the area’s popularity, with an assortment of independent shops and delis lining the streets.

‘Within these trendy new village areas, three-bedroom family houses and two-bedroom flats, typically bought by young professionals and couples, are in high demand.’

  • Peckham attracts a good mix of young professionals, couples and families.
  • There is an excellent range of schools and open spaces, including Peckham Rye Park and Common.
  • It has good transport links to London Bridge, Canada Water, London Victoria and Clapham Junction.
  • The area is deemed relatively affordable in comparison to neighbouring areas like Dulwich Village.
  • In most cases, fully modernised, one-bedroom flats are achieving above asking price, ideal for investors.

Brixton, SW2, London Borough of Lambeth – annual price increase 23.8% (Source: Land Registry, April 2014)

Jimmy Carr, Sales Manager at out Clapham branch, says: ‘Located near traditionally sought-after areas such as Clapham Common, Abbeville Road and Clapham High Street, Brixton’s reputation of offering relatively affordable properties has pushed it to the forefront for investment.’

  • There are travel links via Brixton tube station, on the Victorian Line, and Brixton overground station.
  • The recent development of Brixton Square by Barratt Homes has attracted interest from a variety of investors.
  • Brixton’s trendy food market has influenced the areas desirability, appealing to a younger, cooler demographic.
  • Young professionals, with help from the bank of ‘Mum and Dad’, have become the primary buyers in the area.
  • Two-bedroom garden flats, with prices starting at £550,000, are particularly popular amongst these buyers.

Kennington, SE11, London Borough of Lambeth – annual price increase 23.8% (Source: Land Registry, April 2014)

Justin Bhoday, Sales Manager at our Kennington branch, comments: ‘Kennington’s main appeal has for many years been its convenient access to a number of centrally located areas within the capital, such as the West End, the City and Canary Wharf.’

  • Neighbouring Nine Elms is considered a ‘hotspot’ for investment, and is attracting interest from young professionals and parents.
  • A proposed transport link for the area is the Northern Line extension, which will run from Kennington to the Battersea Power Station.
  • Almost a quarter of investors are currently parents investing in two or three-bedroom Victorian properties priced at around £500,000.
  • Many of these are for their children who already do or intend to study at one of the nearby teaching hospitals, such as St Thomas’, Guys or Kings College Hospitals.
  • Parents are often able to purchase in cash, preferring the good capital growth returns over those offered by banks
Landlord Expert
By Landlord Expert July 2, 2014 01:19

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