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Streatham A local market review snapshot overview

Streatham is well served by public In the post-recession recovery period transport with trains, tubes and London’s housing market has performed strongly, outperforming the wider UK by a buses going almost anywhere in significant margin. Prices across the city are London. Currently more now 36% above their previous peak. Some of affordable than nearby areas of the strongest growth occurred in 2014 with annual growth peaking at 21% in August. and , it is Towards the end of the year and moving into definitely up and coming with 2015 activity has slowed and growth started new eateries and retail provision to cool. However, this is something we springing up on the high street. anticipated and welcome an orderly slowdown. Fears of a London house price bubble have subsided and the market is maintaining sustainable and robust growth, with 9% inflation in the year to May 2015.

Moreover, activity in the new build market remains extremely strong and demand is high, with 67% of the 51,000 new build homes under construction already sold. This is the highest absorption rate of new build stock in recent years.

London’s new build market

60,000 80%

70% 50,000

60%

40,000 50%

30,000 40%

30% 20,000 Private units under construction

20%

10,000 10%

0 0 average Q1 2015 End 2007 End 2008 End 2009 End 2010 End 2011 End 2012 End 2013 End 2014 2001–2006

Sold Unsold Proportion Sold (RHS) Demographics and demand lies in the south of the Tenure profile for homes borough and accommodates approximately 5% of its population. In 2011 this stood 100% The population of currently stands at 14,260 having increased by 4% since 90% at 318,200 having increased by 20% since 2001. Homes in Streatham are now in high 35% 2001. The population of the borough is demand and the area is experiencing a 80% 42% expected to hit 335,000 in 2021, an increase wave of gentrification and it has a much 70% of a further 5%. As a result of this growth higher proportion of privately owned and the number of households in Lambeth rented homes compared with the rest of 60% increased by 10% between 2001 and 2011, the borough. Across Lambeth 64% of units 50% 30% and by 2021 it is forecast that there will be currently being built have been sold off 32% 148,000 households in the borough. This plan and only 1% of those completed in 40% Proportion of households represents growth of approximately 1,800 the last year remain on the market. 30% households per year. However, since 2009 35% only 2,700 new homes have been built 20% 26% across the borough equating to a significant 10% shortfall of housing. As a result, and typical of London overall, demand for homes is Streatham Hill Lambeth hugely outweighing supply and this is fuelling price inflation. Owner occupied Privately rented Socially rented House prices and growth Average house price index

House price growth across Lambeth has 180 been extremely strong and since the beginning of 2010 has typically been higher 160 than the London average. London overall experienced the strongest growth of the 140 post-recession period in 2014 but this was even more pronounced in Lambeth. Prices in 120 the borough increased by 23% last year, compared with 15% across London. (Base = Jan 2007)

Average house price index Average 100 In the district of Streatham Hill (SW2) houses usually sell for a discount to the 80 wider borough. In the first quarter of 2015 2007 2008 2009 2010 2011 2012 2013 2014 2015 in SW2 sold for an average of Lambeth London Base £392,500, a discount of 13%. This equates to flats which are approximately £60,000 cheaper in Streatham compared with Streatham affordability - flats Lambeth overall.

£550,000 As a result Streatham is more affordable compared with other neighbouring areas. £500,000 As such it is becoming increasingly popular, £450,000 especially with young Londoners looking to get onto the housing ladder. This is all driving £400,000 price growth in the area with the value of an £350,000 average flat increasing by 11% between Average price Average Q1 2014 and the same period of 2015. £300,000 Balham Clapham Streatham Hill

Property prices in the areas surrounding Streatham

Westminster

Chelsea

Nine Elms

Wandsworth

Balham Streatham

Tooting Connectivity 5 year growth 2015 2016 2017 2018 2019 2015-19 As well as its relative affordability, Streatham is also well connected. The average journey time from Streatham Hill station into Oxford UK 6% 5% 4% 4% 4% 25% Circus and Liverpool Street is just over 30 minutes. Comparing other areas with similar travel times illustrates how affordable London 7% 5% 5% 5% 6% 31% Streatham is considering its ease to reach . Similarly it is well connected to the major universities in London.

Travel times from Streatham to London universities

1 Kings College London 34 mins 2 London School of Economics 37 mins 3 University of Arts London 38 mins 4 Goldsmiths 39 mins 5 University College London 49 mins 6 School of Oriental and Asian studies 49 mins 7 Birbeck 50 mins 8 Imperial College 53 mins 9 Queen Mary University 53 mins 10 City University 54 mins 11 University of 59 mins 12 University of 58 mins 13 Royal Academy of Music 60 mins

Average travel time into central London

South 25 mins & £1,012,626 12 mins Camden £1,028,957 12 mins £822,492 Kings Cross 8 mins £615,222 20 mins £554,289 Broadway 30 mins £564,900 20 mins £479,879 Broadway 18 mins 28 mins £541,389 Park £1,351,562 38 mins £832,300 Parsons Green 25 mins Clapham Junction £1,100,400 25 mins £708,291

Richmond East 40 mins 35 mins £897,500 £731,900 London Square Streatham Hill 30 mins 40 mins £435,727 £781,100

Travel times Average house price Contacts Jennet Siebrits Mark Collins Head of Residential Research Chairman of Residential +44 20 7182 2066 +44 20 7182 2264 [email protected] [email protected]

Tom Bryant Julien Mills Director Residential Development Executive Director Residential Sales & Consultancy +44 20 7182 2679 +44 20 7182 2562 [email protected] [email protected] Adam Soussi Charles Leigh Middle East Desk – London Senior Director Residential Development +44 20 7182 2060 Sales & Consultancy [email protected] +44 20 7182 2288 [email protected]

Safina Ahmad Head of Residential Agency – Middle East +971 52 640 9505 [email protected]

Sources CBRE, Molior, Rightmove, TFL

Disclaimer 2015 CBRE CBRE Limited confirms that information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt their accuracy, we have not verified them and make no guarantee, warranty or representation about them. It is your responsibility to confirm independently their accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE. © 2015 CBRE Ltd.