{"id":3180,"date":"2018-05-11T14:42:28","date_gmt":"2018-05-11T14:42:28","guid":{"rendered":"http:\/\/poseidon-gp.com\/property\/?p=3180"},"modified":"2018-05-11T14:42:28","modified_gmt":"2018-05-11T14:42:28","slug":"london-property-%e2%80%92-redefining-prime-central-location","status":"publish","type":"post","link":"https:\/\/poseidon-gp.com\/property\/london-property-%e2%80%92-redefining-prime-central-location\/","title":{"rendered":"London property \u2012 redefining prime central location"},"content":{"rendered":"

Property consultants JLL believes Brexit gloom is overblown, and that a good address is still a safe bet \u2013 even as the metropolis redefines what prime central London means<\/strong><\/h4>\n

With property in central areas of the capital unaffordable to all but the wealthiest, the boundaries of prime London are becoming ever more elastic.<\/p>\n

Where until a few years ago \u201cprime\u201d referred strictly to the golden postcodes of Mayfair, Belgravia, Knightsbridge, Kensington and Chelsea, now desirability and wealth have spread to create \u201douter prime\u201d areas that stretch from Wimbledon to Wapping and take in the likes of Fulham, Battersea and the burgeoning South Bank.<\/p>\n

”New developments are redefining once overlooked areas and setting new price levels at a local level”<\/strong><\/p>\n

JLL forecasts house prices in prime central London will rise by an average of 12.5pc over the next five years. This compares with UK average house price growth of 2.5pc from 2018-22.<\/p>\n

High-profile new developments are redefining once overlooked areas and setting new price levels locally \u2013 Manhattan Loft Gardens in Stratford, for example, is part of a new east London cultural hub.<\/p>\n

Former industrial landscapes, including King\u2019s Cross and Greenwich Peninsula, are magnets for today\u2019s aspirational workers. So, too, is the City Road area around Old Street, once known for little more than its vast, grey roundabout.<\/p>\n

In recent years it has carved a new identity as a dynamic, tech hub and found a following among young financiers who wish to be within walking distance of their City offices.<\/p>\n

The walkability factor has, in itself, been the driver for the growth of the City Fringe, where high-rise new luxury apartment blocks in the likes of Aldgate and Shoreditch sit cheek by jowl with some of London\u2019s most historic streets and culturally diverse communities.<\/p>\n

\u201cThe city is moving outwards and eastwards in particular, with 50pc of all new homes under construction in the eastern belt, including Canary Wharf and south-east London,\u201d says Nick Whitten, head of research at JLL.<\/p>\n

\u201cIt\u2019s a value story. New homes in those areas are more affordable than in the north or west of London, but the market is also moving faster where there is greater affordability in buying or renting, which means we expect to see greater growth potential in these areas.\u201d<\/p>\n

”Crucial to the dynamics of London\u2019s property market is the continuing under-supply of new homes”<\/strong><\/p>\n

Research by JLL into London\u2019s biggest regeneration areas shows that price growth there outperforms the London average by 40pc over five years.<\/p>\n

Where new areas are being created from scratch (or, at least, urban scrubland), the arrival of a major company or cultural institutions \u2013 whether it\u2019s the English National Ballet in London City Island or the US embassy and Facebook in Nine Elms \u2013 builds confidence that developers and investors need to follow suit.<\/p>\n

The Brexit vote and the raising of stamp duty thresholds in 2014 \u2013 and again for buyers of investment properties or second homes in 2016 \u2013 slowed many areas of the London market.<\/p>\n

Uncertainty, in the case of Brexit, and the reluctance to lose six- (or even seven-) figure sums in stamp duty prevent many from buying and selling.<\/p>\n

Instead, a buoyant prime and super-prime rental market has emerged, while would-be buyers bide their time until Brexit becomes clear.<\/p>\n

JLL expects rents to rise steadily by around 2.5pc per annum from 2020-22 period, supported by the growing trend of renting by choice.<\/p>\n

But also crucial to the dynamics of London\u2019s market is the under-supply of new homes, with only around one-third of the 66,000 that are needed built each year.<\/p>\n

\u201cLondon\u2019s population has been growing by 100,000 a year for the past two decades and that trend is expected to continue for the next two decades. The severe shortage of supply creates issues, but for investors it underpins value,\u201d says Mr Whitten.<\/p>\n

Similarly important to London investors is the arrival of Crossrail later this year. Much of the potential uplift in value has already been factored into house prices in areas around new stations on the Elizabeth Line, with those starting from a low base such as Woolwich being among the greatest beneficiaries.<\/p>\n

\u201cBut the true value won\u2019t be experienced until the line is in operation,\u201d says Mr Whitten. \u201cThat\u2019s particularly true for the rental market.<\/p>\n

\u201cInvestors buy into an area when it has potential, but renters wait until the infrastructure is up and running. Crossrail will bring an additional 1.5 million people within a 45-minute journey time of London, making many areas far more commutable. That\u2019s going to have a big effect on rental demand in these areas.\u201d<\/p>\n

JLL believes that many of the question marks over London\u2019s stature in the world in the midst of Brexit uncertainty are overblown.<\/p>\n

A strong economy, especially post-2019, will continue to drive housing demand and push up prices. Demand from the international wealthy will continue, while overseas investors are unlikely to shy away from London because of Brexit.<\/p>\n

London, says JLL, will remain a key and cosmopolitan global city, a cultural icon and a great place to do business.<\/p>\n","protected":false},"excerpt":{"rendered":"

Property consultants JLL believes Brexit gloom is overblown, and that a good address is still a safe bet \u2013 even as the metropolis redefines what prime central London means With property in central areas of the capital unaffordable to all but the wealthiest, the boundaries of prime London are becoming ever more elastic. Where until […]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-3180","post","type-post","status-publish","format-standard","hentry","category-news"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9PjAq-Pi","_links":{"self":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/posts\/3180","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/comments?post=3180"}],"version-history":[{"count":0,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/posts\/3180\/revisions"}],"wp:attachment":[{"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/media?parent=3180"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/categories?post=3180"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/poseidon-gp.com\/property\/wp-json\/wp\/v2\/tags?post=3180"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}