A Cushman & Wakefield Insight Publication MARKET VIEW Walthamstow Market View Walthamstow
Area Overview Walthamstow is tremendously well connected with the City of London (Liverpool St), Oxford Circus, and Kings Cross all within 20 minutes of Walthamstow Central (zone 3). The area was also a beneficiary of the recent decision to run a 24 hour night services on the Victoria line on Friday and Saturday evenings. Alongside being a young and up-and-coming area of the capital, the area also benefits from the historic Walthamstow Village conservation area.
Historical Capital Values During recent years, rates of house price growth in the London Borough of Waltham Forest have exceeded most other London boroughs, rising 65% in the five years to September 2018 alone. As highlighted in figure 1, this outperformance has been part of a wider trend in which less-expensive boroughs have significantly outperformed those with higher average house prices.
London Borough Price/Growth Scatter Graph
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Average House Price (as of Sep 2018) 0.0% £0 £200,000 £400,000 £600,000 £800,000 £1,000,000 £1,200,000 £1,400,000 £1,600,000
House Price Forecasts Latest forecasts indicate that the London borough of Waltham Forest’s outperformance of other Outer London boroughs looks set to continue. Despite the flat prices expected through the UK exit from the EU, house price inflation levels are forecasts to move back towards 5%+ p/a levels by 2022. Overall, house prices are forecast to increase by just under 20% (19.4%) in the next five years.
10 Year House Price Performance & Forecasts 25.0%
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-5.0% Waltham Forest Outer London Average
Cushman & Wakefield | Client name 1 Market View Walthamstow
Rental Market Private Rental Forecasts – LB Waltham Forest The London borough of Waltham Forest 5.0% benefits from a large and active Private Rented Sector with over 30,000 homes 4.5% falling into this category. This represents 4.0%
32% of all housing within the borough, 3.5% and is considerably higher than the outer London borough average of 26%. As with 3.0% most outer London borough’s, a 2.5% significant imbalance between supply and 2.0% demand looks set to place significant 1.5% upward pressure on rents in the near future, boosting rental yields for investors. 1.0% As highlighted in the adjacent graph, our 0.5% latest forecasts predict c.21% rental 0.0% growth by 2023. 2019 2020 2021 2022 2023
The Importance of Connectivity The Latest research from Cushman & Wakefield has also highlighted the close relationship of transport connections with rental premiums. We analysed 135 predominantly rental buildings, and as shown in figure 4, a clear correlation between proximity to stations and rental premiums over a local average, became evident. Rental schemes over a 20-minute walk from a station (a sensibly assumed maximum reasonable daily walk) achieved no distinguishable premium over the local market rental base.
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Premium Premium localover rent 10.0%
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Local renter Profile Walthamstow benefits for a young tenant-base, with an average age of 32.6 among private renters and most nationalities split evenly between UK (46%) and European (48%). In terms of work, 18% work in the City, 17% in East London, and 7% in the West End, with average annual wages of just under £30,000 (£29,166). Of this income (gross), tenants in Walthamstow spend on average 31.5% on rent.
Cushman & Wakefield | Client name 2 Author Lee Layton Associate Director Residential - Research 020 3296 4574 [email protected]
Contacts Mike Bickerton Nanette Hung Partner Development Sales Manager Head of New Homes New Homes 020 3 020 3296 2732 [email protected] [email protected]
Mathias Berktold Senior Sales Negotiator New Homes - Walthamstow 077 6432 7089 [email protected]
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Disclaimer This report should not be relied upon as a basis for entering into transactions without seeking specific, qualified, professional advice. Whilst facts have been rigorously checked, Cushman & Wakefield can take no responsibility for any damage or loss suffered as a result of any inadvertent inaccuracy within this report. Information contained herein should not, in whole or part, be published, reproduced or referred to without prior approval. Any such reproduction should be credited to Cushman & Wakefield. © Cushman & Wakefield April 2018
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