CBRE Hot 100 2015 winners of London’s residential market 2–3

Following another exciting year for the London housing market, with average house price growth of 7% and new build construction rates at their strongest since the financial crisis, it is now time for us to reveal CBRE’s picks for what’s hot right now in the 2015 London housing market.

Contents

Best performing locations 4 –5 Most wanted amenities 6–7 Most affordable boroughs 10 –11 Rental boroughs 12 –13 Commuter towns 16 –17 Interior architect designers 18 –19 Office to residential conversions 22 –23 Boutique schemes 24 –25 Largest schemes with planning consent 28 –29 Future home technologies 30 –31 And finally… 32 –33 4–5

top 10 Best performing locations

London’s house price growth of 7% over the last year masks a wide range across the capital. In contrast to recent years, the outer boroughs have been outperforming central London. In line with this, the highest sales rates were also in the outer boroughs, the exception being the top spot which went to City of London.

Price growth % Sales rate %

1 Newham 16 1 City of London 7.52 2 Hillingdon 13 2 Tower Hamlets 5.94 3 Havering 12 3 Greenwich 5.80 4 Harrow 12 4 Lambeth 5.02 5 Enfield 12 5 4.93 6 Barking and Dagenham 12 6 Wandsworth 4.81 7 Bexley 11 7 Bromley 4.78 8 Redbridge 11 8 Southwark 4.75 9 Croydon 11 9 Bexley 4.57 10 Greenwich 10 10 Sutton 4.56

Top performing location for price growth

Newham 16% 6–7

top 10 Most wanted amenities

With developers implementing an increasing array of amenities into their new developments, a recent CBRE survey of residential occupiers examined which of these were truly desired by the end user. Those amenities most wanted and used by residents were a concierge, gym and onsite retail.

Have and use regularly % Don’t have but would like %

1 Concierge 89 1 Gym 76 2 On site retail 65 2 Swimming pool 69 3 Car parking 51 3 Visitor car spaces 64 4 Gym 46 4 Concierge 58 5 Bike racks 38 5 Storage units 57 6 The public realm/landscape 37 6 Car parking 56 7 Dry cleaning collection 32 7 Roof terrace 53 8 Storage units 31 8 Spa 46 9 Visitor car spaces 29 9 Cinema room 41 10 Swimming pool 28 10 On site retail 41

Most sought after amenities

Concierge Swimming pool Gym

Have and use regularly Have and use regularly Have and use regularly 89% 28% 46%

Don’t have but would like Don’t have but would like Don’t have but would like 58% 69% 76% 8–9 10–11

top 10 Most affordable boroughs

Despite ongoing financial constraints, the number of first time buyers in London has increased by 64% since the trough in 2008. Here, we highlight the top ten most affordable boroughs to buy in, a factor that makes them highly attractive to first-time buyers looking to take their first steps onto the property ladder. As might be expected, outer 10 Barking & 6 Redbridge Dagenham boroughs are more affordable than inner boroughs, with the top three 9.0% 9.7% being in south east London. 8 Hillingdon 9.6% 4 Havering House price to earnings ratio % 8.7%

1 Bexley 7.7 2 Bromley 7.9 3 Greenwich 8.7 4 Havering 8.7 5 Sutton 8.9 6 Redbridge 9.0 7 Kingston upon Thames 9.3 8 Hillingdon 9.6 9 Croydon 9.7 10 Barking and Dagenham 9.7

House price to earnings ratio

20 (%)

15

1 Bexley 7.7%

10

7 Kingston upon Thames 3 Greenwich 9.3% 8.7%

5

5 Sutton 8.9% 2 Bromley 7.9% Brent Ealing Sutton Barnet Bexley Enfield Merton Harrow Bromley Islington Camden Croydon Lambeth Hackney Newham Havering Haringey Hounslow Lewisham Hillingdon Redbridge Southwark Greenwich 9 Croydon Wandsworth Tower Hamlets Tower Ham. & Fulham Waltham Forest Waltham 9.7% Kens. & Chelsea Kens. City of Westminster Kings. upon Thames Richm. upon Thames Barking & Dagenham 12–13

top 10 Rental boroughs

London has the highest average rents of any global city at £2,083 pcm, having grown by 4% last year, but there are wide variations across boroughs. The strength of the market reflects a huge surge in the number of renters in the capital over the past decade. This increase in renters has driven the emergence of a new breed of rental property: build to rent schemes. There are now 328 such schemes under construction in London.

Highest rents £pcm Lowest rents £pcm

1 Kensington and Chelsea 3,405 1 Bexley 1,007 2 Westminster 3,062 2 Havering 1,083 3 City of London 2,945 3 Barking and Dagenham 1,162 4 Camden 2,615 4 Sutton 1,166 5 Islington 2,282 5 Bromley 1,271 6 Hammersmith and Fulham 2,168 6 Enfield 1,285 7 Tower Hamlets 2,163 7 Redbridge 1,293 8 Lambeth 2,093 8 Croydon 1,309 9 Hackney 2,088 9 Waltham Forest 1,309 10 Wandsworth 1,889 10 Hillingdon 1,311

PRS schemes with planning Rental growth % permission, not yet under Units construction 1 Bexley 10 1 Southwark 1184 2 Islington 10 2 Croydon 1154 3 Camden 9 3 Tower Hamlets 1116 4 Havering 9 4 Newham 539 5 Hounslow 9 5 Lewisham 416 6 Waltham Forest 8 6 Harrow 392 7 Lambeth 8 7 Hackney 383 8 Harrow 7 8 Hillingdon 358 9 Hillingdon 7 9 Enfield 347 10 Barking and Dagenham 7 10 Brent 342 14–15 16–17

top 10 Commuter towns

With prices in the capital forever soaring, commuter towns remain popular with families looking for space, proximity to London Harpenden 4 Tring 10 £4,392 and value for money. When £4,872 23 mins 36 mins £734,722 taking into account travel costs Berkhamsted £527,003 8 £35,748 and average yearly mortgage £5,220 £27,360 repayments, the most expensive 31 mins £562,326 commuter town is Beaconsfield. £29,220

9 Amersham Radlett 5 £3,336 £3,148 Most expensive 37 mins 35 mins £569,798 £679,073 £27,648 £32,128 1 Beaconsfield Beaconsfield 1 2 Gerrards Cross £3,788 2 26 mins 3 Esher £1,071,534 Gerrards Cross £49,508 Basildon 4 Harpenden £3,296 7 22 mins £3,840 5 Radlett £836,246 33 mins £38,984 £203,757 6 Sevenoaks Grays £12,540 £3,352 7 Weybridge 38 mins 8 Berkhamsted LONDON £190,065 £11,464 2 Tilbury 9 Amersham 1 £3,352 Esher 45 mins Dartford 10 Tring £2,688 5 £183,658 £2,336 23 mins 8 £11,188 Most affordable £842,428 42 mins 6 £38,640 £230,665 £12,176 Swanscombe 1 Tilbury £2,912 Gravesend 9 Gillingham 50 mins 3 3 £3,908 £3,876 2 Grays £254,146 Weybridge 23 mins 44 mins 7 £13,760 3 Chatham £3,592 £201,364 £232,957 36 mins Chatham £13,812 4 Ashford £12,500 £621,886 £3,876 38 mins 5 Dartford £30,124 £181,643 6 Gravesend £11,628 7 Basildon Sevenoaks 6 £3,944 8 Swanscombe 33 mins 9 Gillingham £623,618 Average annual travel cost £30,560 10 Crawley Average journey time * Towns with more than 10% commuter population Ashford Average house price 4 Crawley £2,792 £3,476 36 mins Combined annual cost of mortgage + travel 10 49 mins £212,651 £245,952 £11,864 Train times taken from National Rail and based on the fastest train £13,976 18–19

top 10 Interior architect designers

Design is a crucial factor when buying a new home as it needs to reflect the personality and lifestyle of the buyer. Here are ten of the most exciting residential designers in London right now, 1 Sophie Ashby – South Bank Tower and some of the work they’ve been doing on our biggest schemes.

1 Sophie Ashby Studio Ashby

2 Dara Huang Design Haus Liberty

3 Helen Beresford Sheppard Robson

4 Fiona Naylor Johnson Naylor

5 Tom Dixon Tom Dixon Design Research Studio 2 Dara Huang – South Bank Tower

6 Martin Brudnizki MB Design Studio

7 Caroline Smith Wish London

8 Louise Wicksteed 1508

9 Louisa Penn Louisa Penn Interiors

10 David Gamble and Huw Hughes Edward Philips

5 Tom Dixon – 10 David Gamble and Huw Hughes – Bedford Street 20–21 22–23

top 10 Office to residential conversions

Permitted development rights were first introduced in May 2013, opening up a whole new set of opportunities for London developers. As a result, there are now 6,333 units in office to residential conversion schemes currently under construction in London. Here we list the ten largest. However, PDR (Permitted Development Rights) schemes are not the only ones making use of redundant office space – iconic schemes such Centre Point and Southbank Tower are also conversions.

Scheme Location Units

1 Delta Point Croydon 404 2 Impact House Croydon 263 3 Queens House and Kings House Harrow 262 4 Alfa Laval – New Build (WestSide) + Tower Hounslow 206 5 St Anne House Croydon 197 6 Union Park Hillingdon 190 7 Central House / The Balfour Building Hounslow 171 8 The Printworks Lambeth 155 9 Northway House Barnet 149 10 Hill House Islington 148

Largest office to residential conversion

Delta point Croydon 404 units

Centre Point, WC2 24–25

top 10 Boutique schemes

Niche and boutique schemes Under construction remain as popular as ever with Artisan buyers seeking that ‘hidden London gem’. With buyers Bedford House becoming ever more discerning, The Colyer the schemes listed on this page The Fitzbourne demonstrate the beauty and 3–4 Great Marlborough Street detail that smaller schemes 11 Soho Street The Pathé Building have to offer – often attracting Ingram House similar values to those achieved 102 Jermyn Street by larger developments. The Pathé Building Soho 13 68–70 Wardour Street Completed

The Beecham The Charles The Corner House 15 Hollen Street 15 Hollen Street The Colyer* Hop House The Maddox Collection The Palladio 10 Soho Square 11 Soho Street The Tavistock

The Corner House The Fitzbourne

Hop House 102 Jermyn Street * Computer generated images are indicative only 26–27 28–29

top 10 Largest schemes with planning consent

Large regeneration schemes like Earl’s Court and Greenwich Peninsula have thousands of units in their masterplans and, with some phases already underway, have contributed to the 19,000 units under construction in London. Here are the largest developments by private units currently under construction.

Private Scheme Location Developer units 1 Greenwich Peninsula Greenwich Knight Dragon 11,000 2 Barking Riverside Barking and Dagenham Bellway Homes Essex 10,800 3 Barnet Argent Related 7,550 4 Stratford City Newham London Legacy DC / Olympic Park Legacy Company 6,454 5 Earls Court Hammersmith Hammersmith and Fulham Capital and Counties 5,845 6 Woodberry Park Hackney Berkeley Homes NE London 5,517 7 Canary Wharf Estate Tower Hamlets Canary Wharf Group 3,610 8 Convoys Wharf Lewisham Hutchison Property Group (UK) Ltd 3,500 9 Gas Works Ealing St James 3,475 10 Wandsworth Battersea Power Station Development Company 3,444

7 Canary Wharf Estate 1 Greenwich Peninsula 30–31

top 10

Future home Samsung’s SmartThings home automation kit: Dims the lights and technologies 1 adjusts thermostats independently.

As technology continues to impact upon our daily lives, companies 6 are increasingly turning their attention to technology in the home. Here are ten of the best; we expect to see many of these in our 5 Serif: A television that looks new schemes in the near future. like a piece of furniture.

Awair air monitoring device: Monitors the air for CO2, dust, toxic chemicals, 1 Samsung’s SmartThings home temperature and humidity. automation kit

2 Homey – voice-activated home automation system 7 3 Withings Smart Home Monitor 2 Dolfi ultrasonic 4 Cujo antivirus software washing aid: 5 Serif television Ultrasonic washing device to clean deep 6 Awair air monitoring device without excessive 7 Dolfi ultrasonic washing aid Homey – voice-activated home automation system: agitation. Manages appliances, home entertainment, lighting, 8 Butterfly home monitoring system online data and social media. 8 9 Sengled Plus lightbulb speaker Butterfly home monitoring system: 10 August by Fuseproject home entry Home monitoring system.

3 Sengled Plus lightbulb speaker: A speaker and lightbulb that plugs into Withings Smart Home Monitor: any light socket. Baby monitor, lullaby singer, security camera, webcam and video camera in one. 9

4 10 Cujo: August by Fuseproject Defends your entire home entry: A reliable network from hackers, lock you can give away viruses and malware. via phone invitation. 32–33

And finally… Ten developers to watch in 2016

With a diverse range of developers bursting onto the scene, here are our pick for the top ten to watch.

Almacantar Canary Wharf Group Capco Dukelease First Base Greenland Grosvenor Knight Dragon Lodha St James

Greenwich Peninsula, Knight Dragon 34–35

Sources Land Registry, Molior, EGi, National Statistics, Rightmove, Nationwide.

Photography P14-15: istock.com / Piero Cruciatti

Caveat The following lists are the subjective view of CBRE’s team, and do not represent a statistical or comprehensive view of the market: future home technologies, designers, boutique schemes, developers to watch. Jennet Siebrits Phillippa Drysdale Mark Collins Lisa Hollands Head of Residential Research Residential Research London Residential London Residential Senior Director Analyst Chairman Managing Director Disclaimer CBRE Limited confirms that information contained herein, including projections, has been obtained from sources 2015 CBRE believed to be reliable. While we do not doubt their accuracy, we have not verified them and make no guarantee, T: +44 (0)20 7182 2066 T: +44 (0)20 7182 2186 T: +44 (0)20 7182 2264 T: +44 (0)20 7420 2004 warranty or representation about them. It is your responsibility to confirm independently their accuracy and E: [email protected] E: [email protected] E: [email protected] E: [email protected] 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.

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