According to a recent report by Foxtons, properties in travel zones 3-6 have experienced the greatest price appreciation in the past decade, with flats achieving an impressive 8.5% per annum.
Houses were only just behind, appreciating by an average of 6.3% each year. It’s thought that this growth is a consequence of central London’s peak property prices, where growth has begun to level off. With increasing amounts of central London being developed into luxury apartments aimed at foreign investors, and an average property price well out of range of all but the highest earners, those hoping to get onto the housing ladder in London are having to look further and further afield.
Over the past ten years, properties in zones 3-6 have seen an average appreciation of 75%. But don’t worry, you’re not too late: despite this, there are still relatively affordable flats and houses available in boroughs throughout outer London, and the trends still suggest that these represent an excellent investment. In fact, price growth in parts of outer London is accelerating as young families radiate out of central London. Areas which used to have a bad reputation are now becoming trendy and desirable as crime rates drop and investment floods in.
Harlesden is a good example of this. Formerly the ‘gun crime capital’ of the UK, the area in north-west London saw the biggest price rises in the entire city in the last year at 14.6 percent. It joins other areas of the capital like Dalston, Peckham or Walthamstow, which after many years of stagnation and trouble, are now becoming trendy. Areas where new Crossrail stations are due to open are ones to watch too. As transport links improve and reduce commuting times from the City and Canary Wharf, prices will begin to rise along with a surge of new shops and housing developments.
If you are looking to buy a property in an up-and-coming part of London for the first time, the chances are you’re hoping to find something on the cheaper end of the scale. However, don’t be discouraged if all you can afford seems a bit small. If you’ve yet to start a family, but think you might start one later, don’t forget that while properties you can afford now might only have one or two bedrooms, you usually have the chance to add more later. Check with the real estate agent or owner if the property would be suitable for a loft conversion or even a ground floor extension. Getting your home extended is cheaper than buying a larger property outright, and means you can wait until you’re in a better position financially, and actually have need of the extra space.
If you’re already a London property owner, but are thinking about expanding your home, contact us today to speak to one of our friendly and professional design consultants.
Landmark Lofts is part of the Landmark Group - the only group in London specialising in the project management of loft conversions, extensions and refurbishments to include a Chartered Building Company (CIOB), Chartered Architectural Practice (RIBA) and to be regulated by the Royal Institution of Chartered Surveyors (RICS). The Landmark Group specialises in the project management of loft conversions, extensions and refurbishments.