CBRE Hot 100 2016 winners in London’s residential market CBRE Residential 2–3 Hot 100 2016 The year is drawing to a close and so our annual Hot 100 report is published. Find out where was hot in 2016. Contents Best performing locations 4–5 Most affordable boroughs 8–9 For nature lovers 10–11 For shopaholics 14–15 Boroughs for renters 16–17 Best school provision 20–21 Tallest towers 22–23 Highest level of development 24–25 Demographic trends 28–29 Best economic performance 30–31 CBRE Residential 4–5 Hot 100 2016 Top 10 Best performing locations Although prices remain highest in Central London, with homes in Kensington and Chelsea averaging £1.35 million, the other London boroughs continue to see the highest rate of growth. For the second year running Newham tops the table for price growth. This year prices in Newham increased by 24%; up from 16% last year. The areas characterised by significant regeneration, such as Croydon and Barking and Dagenham, are recording price rises of 18% and 17%, which is well above the average rate of 12%. Top Ten Price growth Top Ten Highest value 1 Newham 23.7% 1 Kensington and Chelsea £1,335,389 2 Havering 19.0% 2 City of Westminster £964,807 3 Waltham Forest 18.9% 3 City of London £863,829 4 Croydon 18.0% 4 Camden £797,901 5 Redbridge 18.0% 5 Ham. and Fulham £795,215 6 Bexley 17.2% 6 Richmond upon Thames £686,168 7 Barking and Dagenham 17.1% 7 Islington £676,178 8 Lewisham 16.7% 8 Wandsworth £624,212 9 Hillingdon 16.5% 9 Hackney £567,230 10 Sutton 16.5% 10 Haringey £545,025 360 Barking CBRE Residential 6–7 Hot 100 2016 CBRE Residential 8–9 Hot 100 2016 Top 10 Most affordable boroughs Using a simple ratio of house prices to earnings we can illustrate the most affordable boroughs. For the second year running Bexley comes out as the most affordable for its local residents. In second place is Bromley, with Greenwich a close third. Tower Hamlets makes its first entrance in the top ten (last year in 5 Barking and 12th slot), replacing Hillingdon, which is now in 14th place. 6 Redbridge Dagenham 9 Tower Hamlets 9.7% 10.1% 9.4% House price to earnings ratio % 4 Havering 1 Bexley 8.17 9.0% 2 Bromley 8.79 3 Greenwich 8.91 4 Havering 9.00 5 Barking and Dagenham 9.43 6 Redbridge 9.75 7 Kingston upon Thames 9.88 8 Croydon 10.07 9 Tower Hamlets 10.12 10 Sutton 10.35 House price to earnings ratio 18 (%) 16 14 12 1 Bexley 10 8.2% 8 7 Kingston upon Thames 3 Greenwich 6 9.9% 8.9% 4 2 10 Sutton 10.3% 2 Bromley 0 8.8% Brent Ealing Sutton Barnet Bexley Enfield Merton Harrow Bromley Islington Camden Croydon Lambeth Hackney Newham Havering Haringey Hounslow Lewisham Hillingdon Redbridge Southwark Greenwich 8 Croydon Wandsworth Tower Hamlets Tower Ham. & Fulham Waltham Forest Waltham 10.1% Kens. & Chelsea Kens. City of Westminster Kings. upon Thames Richm. upon Thames Barking & Dagenham CBRE Residential 10–11 Hot 100 2016 Top 10 For nature lovers Outside space, fresh air and greenery are increasingly recognised as necessary for wellbeing. Havering has the largest percentage of open space being home to many parks such as Raphael Park, Hylands Park and Upminster Park. Upminster Golf Club is also located in Havering. Richmond upon Thames comes in at third and is well known for Richmond Park and Kew Gardens to name a few; a large part of the borough is designated as part of the Metropolitan Green Belt. Although, unsurprisingly we don’t find any inner London boroughs in this top ten, there are many oases of calm to be found in the city centre, not least, Hyde Park, Regent’s Park and Kensington Gardens. Total square meters % of of green space borough 1 Havering 67,575,440 59.0 2 Bromley 86,245,303 57.4 3 Richmond upon Thames 33,500,925 57.0 4 Enfield 39,861,193 48.5 5 Hillingdon 52,107,306 45.0 6 Redbridge 22,750,573 40.3 7 Greenwich 19,816,164 39.3 8 Bexley 24,997,725 38.9 9 Barnet 32,665,095 37.7 10 Hounslow 21,221,417 37.5 CBRE Residential 12–13 Hot 100 2016 CBRE Residential 14–15 Hot 100 2016 Top 10 For shopaholics A recent CBRE survey highlighted the symbiotic relationship Retail would make a development between quality retail and residential development, with more appealing 77% of respondents saying good retail provision had a strong positive impact on residential values. Unsurprisingly Westminster, which includes the famous shopping destinations 86% of Oxford Street, Regent Street and Bond Street has the highest Good quality retail had a ‘strong positive’ number of shops. Although Islington misses out on a top ten impact on residential slot for shops, it creeps in at number 10 for food and beverage outlets, with over 500 restaurants, cafes and bars. 77% Important to have a strong retail offering Number of shops Food and beverage outlets 1 Westminster 5,937 1 Westminster 2870 83% 2 Barnet 2,189 2 City Of London 1438 3 City Of London 1,895 3 Barnet 732 Preferred independent stores 4 Kensington & Chelsea 1,822 4 Wandsworth 640 5 Hammersmith & Fulham 1,590 5 Croydon 580 65% 6 Newham 1,587 6 Camden 564 7 Croydon 1,552 7 Lambeth 564 ‘Convenience’ was the main benefit of living around retail 8 Wandsworth 1,538 8 Kensington & Chelsea 559 9 Brent 1,479 9 Hammersmith & Fulham 548 10 Lambeth 1,170 10 Islington 512 91% Which type of retail outlet would you most like to have in your residential development? 70% 54% 54% 44% 36% 34% Coffee shop Supermarket Restaurant Bar / wine bar Convenience Delicatessen / patisserie store CBRE Residential 16–17 Hot 100 2016 Top 10 Boroughs for renters Despite having the highest rental growth for the second year running, Bexley remains the cheapest borough with rents of £1,051 pcm. Unsurprisingly, the prime boroughs of Kensington and Chelsea, Westminster and the City have the highest rents, all in excess of £3,000pcm. Highest rents pcm Lowest rents pcm 1 Kensington and Chelsea £3,391 1 Bexley £1,051 2 Westminster £3,188 2 Havering £1,138 3 City of London £3,108 3 Barking and Dagenham £1,170 4 Camden £2,634 4 Sutton £1,188 5 Islington £2,306 5 Bromley £1,276 6 Hammersmith and Fulham £2,250 6 Hillingdon £1,280 7 Lambeth £2,183 7 Croydon £1,311 8 Tower Hamlets £2,113 8 Redbridge £1,312 9 Hackney £2,057 9 Enfield £1,319 10 Wandsworth £1,901 10 Waltham Forest £1,328 Rental growth % Share of private renters % 1 Bexley 7.4 1 Westminster 43.3 2 Havering 6.5 2 Newham 42.5 3 Islington 4.8 3 Ealing 35.0 4 Lambeth 4.8 4 Lambeth 34.4 5 Hammersmith and Fulham 4.1 5 Hammersmith and Fulham 33.1 6 Harrow 3.9 6 Kensington and Chelsea 33.1 7 Sutton 3.5 7 Camden 32.0 8 Brent 3.1 8 Tower Hamlets 31.5 9 Enfield 3.0 9 Wandsworth 31.2 10 Croydon 3.0 10 Waltham Forest 30.0 Nine Elms Point CBRE Residential 18–19 Hot 100 2016 CBRE Residential 20–21 Hot 100 2016 Top 10 Best school provision London has 3,118 primary schools. Of these, 658, or 21%, are rated outstanding. Although Southwark has the highest number of outstanding schools, at 31, Harrow with 30 outstanding schools actually records the highest proportion of outstanding primary schools, at 38%. This top ten includes 11 boroughs as Kingston upon Thames, Newham, Barnet and Sutton all have 25% outstanding schools. Share of Number of Total number Borough outstanding outstanding of schools schools 1 Harrow 38% 30 78 2 Richmond upon Thames 31% 25 81 3 Southwark 27% 31 113 4 Lambeth 27% 26 98 5 Wandsworth 26% 30 114 6 Lewisham 26% 26 99 7 Redbridge 26% 25 96 8 Kingston upon Thames 25% 17 67 9 Newham 25% 27 107 10 Barnet 25% 30 120 11 Sutton 25% 18 72 CBRE Residential 22–23 Hot 100 2016 Top 10 Top 10 Tallest towers under construction Tallest towers with planning permission We are having a resurgence of high rise development and London’s skyline is changing. The towers of today are so far removed from the much maligned council blocks of the ‘60s. Designed by starchitects, they come with a plethora of amenities and other benefits. The tallest tower in London is the Shard, at over 1,000 feet. The tallest residential tower in London is Berkeley’s The Tower, One St George’s Wharf. However, at ‘just’ 49 storeys, it will soon be overtaken by another Berkeley tower – South Quay Plaza and The Landmark Pinnacle. Also just coming out of the ground, we have the Spire London. Although it has fewer floors than South Quay Plaza and the Landmark, at 771 ft, it will be Western Europe’s tallest residential building. Spire London Scheme Name Borough Developer Total homes Storeys Scheme Name Borough Developer Total homes Storeys 1 Landmark Pinnacle Tower Hamlets Chalgrove 822 75 1 Alpha Square Tower Hamlets Drakar Ltd 634 65 2 South Quay Plaza Tower Hamlets Berkeley Homes SE London 888 68 2 South Quay Plaza 4 Tower Hamlets Berkeley Homes SE London 396 56 3 Spire London Tower Hamlets Greenland (UK) Investment 861 67 3 Morello Quarter - Morello Tower Croydon Redrow / Menta 499 55 4 The Diamond Tower Tower Hamlets Canary Wharf Group 611 59 4 New Covent Garden Market Wandsworth VSM Estates Limited 2971 51 5 One Nine Elms Wandsworth Dalian Wanda Group 487 59 5 AYKON London One Lambeth AYKON / DAMAC 450 50 6 1 Park Drive Tower Hamlets Canary Wharf Group 483 57 6 Vauxhall Square Lambeth CLS Holdings Plc 578 50 7 Wardian London Tower Hamlets Ballymore Group 756 55 7 Convoys Wharf Lewisham Hutchison Property Group (UK) Ltd 3500 48 8 The Madison Tower Hamlets LBS Properties 423 53 8 Bankside Quarter Southwark Carlyle Group 489 48 9 KPF Tower Tower Hamlets Canary Wharf Group 797 51 9 Millharbour Village Tower Hamlets Galliard Homes 861 43 10 Principal Tower Hackney Brookfield Europe 329 50 9 Portal West Business Centre Ealing City & Docklands Property Group 578 42 CBRE Residential 24–25 Hot 100 2016 Top 10 Highest level of development As is typical across the whole of the UK, homebuilding in London falls woefully short of the levels needed.