CBRE Hot 100 The winners of London’s residential market Contents Boroughs to buy in 03 Tallest completed towers in London 07 Tallest future towers in London 08 Niche developments 09 Riverside schemes 11 First-time buyer locations 13 Most expensive commuter towns 17 Most affordable commuter towns 17 Addresses 19 Crossrail winners 21 3 | 4 Top 10 1. Camden 2. Merton 3. Richmond upon Thames 4. Southwark Boroughs to buy in AVeraGE house price: AVeraGE rent (pcm): AVeraGE house price: AVeraGE rent (pcm): AVeraGE house price: AVeraGE rent (pcm): AVeraGE house price: AVeraGE rent (pcm): £3,844 £1,804 £2,215 £1,840 AVeraGE Yield: AVeraGE Yield: AVeraGE Yield: AVeraGE Yield: We have considered a number of economic and housing 4.5% 5.3% 4.9% 5.5% market metrics to identify the London Boroughs 2013 price Growth: 2013 price Growth: 2013 price Growth: 2013 price Growth: with the most potential for capital growth over the 11% 9.4% 8.6% 9.8% next few years. The metrics include demographic £687,539 £380,656 £514,439 £428,742 trends, forthcoming regeneration and infrastructure As a borough, Camden boasts an array of Despite being relatively close to Central Richmond is also popular because of its The north of the borough is now one of the improvements, the rental market, house price trends desirable areas; from the bustling market London with good transport links in and village-like appeal, aided by its expansive most popular spots in London, following and the socio-economic backdrop. and lively music scene that is Camden out, Merton is one of London’s quieter park and enviable riverside location. It also huge culture-led regeneration over the last Town itself, to the well-heeled celebrity boroughs and manages to provide a leafy, has good schools and a strong sense of ten years. This rapid change along the hang-out of Primrose Hill, and then village-like atmosphere. This is particularly community, which continues to attract new Southbank has encouraged a surge in ultimately topped by the leafy expanse of the case in the most popular and affluent families to the area. Its population is confidence across the rest of the borough, Hampstead Heath. The borough has a areas, such as Wimbledon. However, it still expected to grow by 16% over the next which has previously been neglected. Now, strong reputation as both a trendy young provides a more affordable alternative to its decade. This population is also increasingly 40% of Southwark is ear-marked for district, and a traditional village-like area. typical competition, Richmond and Fulham. affluent; Richmond is now the least regeneration. For example, Elephant and It is no surprise that its housing market has Merton’s reputation is strengthening and as deprived borough in London. One of the Castle is set for a complete transformation. out-performed most of the rest of the such, the local population is expected to borough’s key strengths from a house From a long-term investment perspective, capital, with average growth of 11% over the grow considerably, by 21% over the next purchase perspective, is the fact that its Southwark has huge potential; definitely one last year, and 100% over the last ten years. decade. This will put considerable pressure housing market is mature and robust of the best boroughs to buy in. on house prices. housing market which is resilient to wider The regeneration towards the south of economic uncertainty. the borough will add yet another string to Camden’s bow. Camden already OUR TIP: Colliers Wood OUR TIP: Kew OUR TIP: Southbank houses three of London’s busiest and largest rail stations, with one of the most comprehensive international services, and Kings Cross is undergoing a serious overhaul outside the station. There are 5. City of Westminster 6. Wandsworth 7. Kingston upon Thames plans to deliver 50 new buildings, 2,000 new homes, 20 new streets and AVeraGE house price: AVeraGE rent (pcm): AVeraGE house price: AVeraGE rent (pcm): AVeraGE house price: AVeraGE rent (pcm): 10 new public squares. £5,091 £2,043 £1,621 Underlying demographics will also heighten AVeraGE Yield: AVeraGE Yield: AVeraGE Yield: demand. Population growth in the region of 4.3% 4.5% 5.3% 19% is expected over the next decade. This The Top 10 equates to an additional 40,700 people in 2013 price Growth: 2013 price Growth: 2013 price Growth: the borough. This, coupled with Camden’s 3.8% 11.2% 6.7% strong price performance, helps explain £829,251 £421,228 £342,297 why it is our top borough to buy in. 1. Camden 2. Merton OUR TIP: Covent Garden Westminster is an exclusive borough, Many parts of Wandsworth have very Kingston is one of the most popular London reserved for high net worth buyers, who mature and robust housing markets, such boroughs for families; it has some of the 3. Richmond upon Thames will continue to be very active. Overseas as Balham and Wandsworth Common, best schools, the lowest crime rates and is 4. Southwark buyers consider London to be a safe but the northern part has traditionally the second least deprived borough across haven for investment, particularly in the dragged behind. However, the extensive the whole capital. Similar to neighbouring 5. City of Westminster prime markets within Westminster. We regeneration of Battersea and Nine Elms Merton, it is considered a nice place to 6. Wandsworth anticipate this will be an ongoing trend. is completely transforming the area and bring up a family, yet has remarkably quick 7. Kingston upon Thames Furthermore, the few pockets within the shifting people’s perceptions. This stretch links into the centre of London. It is also borough that are currently underperforming of Wandsworth is becoming an extension relatively affordable. Its popularity is 8. Islington are due to undergo complete makeovers. of London’s prime markets, hence the mounting, with population growth of around 9. Hackney For example, Tottenham Court Road and double-digit house price growth over 23% expected over the next ten years. This Paddington will benefit from Crossrail. the last year. sits against a backdrop of consistently low 10. Kensington and Chelsea housing supply, which is pushing up prices. OUR TIP: Victoria OUR TIP: Wandsworth Town OUR TIP: Kingston Town 5 | 6 8. Islington 9. Hackney 10. Kensington & Chelsea Top 10 AVeraGE house price: AVeraGE rent (pcm): AVeraGE house price: AVeraGE rent (pcm): AVeraGE house price: AVeraGE rent (pcm): Boroughs to buy in £2,211 £2,174 £6,840 AVeraGE Yield: AVeraGE Yield: AVeraGE Yield: 4.9% 5.4% 4.1% 2013 price Growth: 2013 price Growth: 2013 price Growth: 8.8% 12.8% 7.5% £539,203 £474,202 £1,168,479 1. Camden 5. City of Westminster Islington has a range of attributes. It has Hackney has grown rapidly in popularity Similar to Westminster, Kensington and a diverse cultural offering and a vibrant over the last decade, and this is reflected Chelsea is one of the most exclusive night-life, yet a quieter cafe culture in the doubling of house prices. As with boroughs in London and demand for 8. Islington environment in many parts. It is also the heaviest concentration of young property is unrelenting and far-reaching. It remarkably close to the City. The borough entrepreneurs and creatives, it has an is home to both the UK and global elite, appeals to a range of buyers; young enviable reputation as one of the coolest with the former having played an professionals, families and students, boroughs in London. It has also been a increasingly prominent role in the market 9. Hackney as well as those who have lived and key beneficiary to waves of regeneration over the last year. The depth and breadth of 10. Kensington & Chelsea remained in the borough for decades. and infrastructure improvements over the demand for real estate in this area, Population is expected to grow by 16.5% last decade. Now the general uplift in the particularly against the backdrop of acutely over the next decade; an additional area is being matched with the constrained supply, has helped it 34,000 people. It is unlikely that the development of high quality residential consistently out-perform the wider market housing supply will keep pace, with only accommodation. We expect house prices over the last five years. 4,750 units in the planning pipeline. to increase significantly as a result. 3. Richmond OUR TIP: City Road OUR TIP: Shoreditch OUR TIP: Notting Hill upon Thames 4. Southwark 7. Kingston upon Thames 6. Wandsworth redevelopment of Ealing Broadway 2. Merton 7 | 8 Top 10 Top 10 Tallest completed towers in London Tallest future towers in London THE SHARD THE TOWER, THE LANDMARK StRATFORD HALO PIONEER POINT WOODBERRY PARK THE LANDMARK ONE NINE ElMS ARROWHEAD QUAY ONE LANSDOWNE PRINCIPAL PLACE VAUXHAll CROSS / ONE St GEORGE’S NORTH (City Pride) ROAD VAUXHAll SqUARE Sellar Property Charlegrove Genesis Housing Empire Property Berkeley Homes Dalian Wanda (Waterside House) Brookfield Europe WHARF Charlegrove Guildhouse UK Ltd CLS Holdings Group Properties Ltd Association Group Completed 59 storeys Ballymore Group 50 storeys St George Properties Completed Completed Completed Completed autumn 2012 436 apartments 55 storeys 55 storeys 243 apartments 50 storeys Completed summer 2012 summer 2010 summer 2013 summer 2011 75 storeys 750 apartments 377 apartments 410 apartments summer 2013 27 storeys Planning Planning 87 storeys 44 storeys 43 storeys 33 storeys 792 apartments Planning Planning 298 apartments permission Planning permission 50 storeys Planning permission permission 10 apartments 647 apartments 410 apartments