April 9, 2016 by Ed Kennedy
3 London districts for good long term property value
The London property market continues to run hot through 2016 as demand for housing continues to grow in the UK capital. While areas like Chelsea, Kensington, and Notting Hill loom as desirable districts, they also come with a property prices that can feel elusive to many Londoners new to the city or seeking to buy their first home or investment property.
Accordingly, looking to 3 newer and growing regions is a worthwhile endeavour in the current property climate. So, let’s look now at 3 property markets within London that represent good value long term.
Shoreditch is the epicentre of the London startup scene. Known as Tech City – or more affectionately Silicon Roundabout – it has drawn young professionals from near and far. Therefore, for those high flying app designers, entrepreneurs, and marketers from near and far, the capacity to choose from a broad variety of areas to live in may be an easy decision to live close to work.
Yet, whether in the tech game or not Shoreditch is an interesting market at present. The considerable demand for a 2 bedroom home (with a median price of £898,000) has far outstripped demand for a studio, 1 bed, or 3 and 4 bed residence. While location and a variety of numerous other factors determine a suitable buy, as 3 bedroom residences have a median of £605,000 – and therefore a difference of £230,000 pounds – many Londoners shall be weighing up the virtues of greater space for less money (notwithstanding other drawbacks).
Further, though known London is among the most expensive real estate markets in the world – as in 2015 Shoreditch outpaced Central London in terms of rising property value – the reality of the pace of this growth going uninterrupted is unlikely. Therefore, now may be a good time to buy for the long term as recent weeks have seen a slight market slowdown in some of London’s most prestigious suburbs – and while economic turbulence in world markets can bring a variety of results – foreign investors from Russia and China may look with more timidity as a result on a new purchase in Shoreditch, opening the door for local buyers.
This said, notwithstanding the district’s virtues, for those who still find its prices unsightly looking further out and across the Thames to Bermondsey is worthwhile.
At 18 minutes to Charing Cross Junction and 17 to Shoreditch, Bermondsey is centrally located, offers some good value for home buyers. Having began this current period of renewal with the renovation its many wharf’s in the 1980’s, Bermondsey offers a number of great cafes and pubs within close proximity, as well as the the iconic outdoor amphitheatre The Scoop regularly delighting both locals and visitors.
A median house price of around £796,000 is advantageous compared to Shoreditch, but also diminished by comparison when it’s considered alongside the district price of approximately £766,000 for a 3 bedroom home. Yet, where Bermondsey stands to benefit especially is the great prospect for growth that reside in its future.
Though the South-East of London was once viewed as an unsuitable area for commuters, the recent advent of greater transport links via the construction of the New Bermondsey railway station affirms this area offers much promise both for a purchase now, and for growth in the generation ahead with the ThamesLink Programme to offer the prospects of broader growth in the area as a whole.
Accordingly, for Londoners who feel they could make a long term residency or investment in the area the lure of Bermondsey is unquestionably a worthwhile consideration. Yet, for those Londoners perhaps seeking an opportune buy that would provide them some serenity while retaining proximity to the City then another district beyond Shoreditch and Bermondsey prevails.
For Londoners longing to make the most of weekends Barnet to the north of London is worth exploring for a property purchase. Barnet offers a good mix of proximity to the city on its south side while also providing a number of transport corridors in all other directions to green fields and numerous towns outside of the Big Smoke.
With a median price of around £604,000 Barnet is a distinct of immense diversity with properties in its West, ranging over £1,000,000 whereas flats in the South-East can be found for between £450,000-£500,000. A number of 1 and 2 bedroom flats can be found below this point in the £350,000-£450,000, while those seeking 3 bedrooms or more can find a flat in the mid £550,000 range, and homes from £650,000-£750,000.
The chief appeal of Barnet is the capacity to find the best of both worlds within its district offering a quick commute to London is on offer, just the same as the opportunity to leave behind the busyness of the City and retreat to quiet and calm of its semi-provincial standing at the end of the working week.
The bottom line
As a city of 8 million and the capital of UK politics, business, and culture London’s lure as an attractive destination for first time home buyers and foreign investor shall long remain. Amidst this dynamic can be many challenges for a first time buyer, so looking to the long term is ideal.
In turn, for those who whether by budget or judgement feel London is not their best selection for a home buy may find greater opportunity within cities further afield. Looking at the Oxfordshire, Essex, or Hatfield market can yield you a property well below London prices.
Ed Kennedy is a journalist and web designer proudly from Melbourne, Australia. Say hi to Ed via firstname.lastname@example.org or on Twitter @Edkennedy01
Further, with some travel times favourable to a commute within London itself – with Hatfield having a median house price of £277,000 for a terraced home and the 450,000-£500,000 figure for a detached 3 bedroom and just a 22 minute train ride from city to city – the prospect of easily and quickly commuting from home to London is one that may shall find appeal in.