London living 2018 A borough by borough review CBRE Residential 2–3 London living 2018 Contents Overview 5 Let’s start with London 6 Barking and Dagenham 10 Barnet 12 Bexley 14 Brent 16 Bromley 18 Camden 20 City of London 22 Croydon 24 Ealing 26 Enfield 28 Greenwich 30 Hackney 32 Hammersmith and Fulham 34 Haringey 36 Harrow 38 Havering 40 Hillingdon 42 Hounslow 44 Islington 46 Kensington and Chelsea 48 Kingston upon Thames 50 Lambeth 52 Lewisham 54 Merton 56 Newham 58 Redbridge 60 Richmond upon Thames 62 Southwark 64 Sutton 66 Tower Hamlets 68 Waltham Forest 70 Wandsworth 72 Westminster 74 CBRE Residential 4–5 London living 2018 Overview London has an illustrious history dating back more than 2,000 years and has survived invasions, attacks, plagues and wartime perils alike. Ever since the Romans built a bridge across the River Thames and named the resulting settlement Londinium, it has continued to thrive, adapt and regenerate. Once a small outpost in the northern region of the Roman Empire, Greater London now includes 33 very distinct boroughs, each with its own individual character - and each presenting inspirational opportunities for those who choose to live in the world’s most vibrant capital city. The attraction of London as a place to live and work is driven by a wide array of factors, including its global leadership in financial services, professional services and technology; its many first class educational institutions; its arts, shopping, entertainment and night life; and of course its enviable variety of green and open spaces. London can offer more than its fair share of stately traditional and period housing. But it is also in the midst of tremendous change as multiple regions are redeveloped and brought up to date with properties suitable for 21st century living and a fast-growing population. Linked to ongoing improvements to the road and rail transport network, these property developments will bring still more advantages to the inhabitants of London in terms of connectivity to places of work, whether that’s in the City of London’s financial district, emerging fintech and technology hubs in the East End or business parks around London’s Heathrow Airport. In this, the fourth annual Borough by Borough report, we present an overview of each of London’s 33 boroughs from a housing market perspective. We look at a range of metrics that are of interest to those living, or thinking of living, in each borough and offer a brief overview of inspiring property developments taking place within each one. Jennet Siebrits Head of Residential Research CBRE CBRE Residential 6–7 London living 2018 Let’s start with In every London borough, the need for The highest property price rises between now regeneration and house-building due to and last year’s report were in Harrow (14%), Current population Average weekly earnings London growing populations has been acknowledged Barnet (9%), Kensington and Chelsea (9%) to one extent or another. As a result, there and Redbridge (9%). are over 66,000 homes currently under 8,977,985 £817 London is one of the construction; three times as many as at the According to our forecasts, London house end of 2010. prices will grow by an average of 13% over world’s most culturally Population growth over next decade Employment the next five years and by 15% in Prime diverse capital cities, and The projects underway in London demonstrate Central London. Pockets of London will grow % % its reputation as a global huge ambition and vision, especially those faster than others, with Hackney, Camden, 12 74.0 based around the East End and on the South Tower Hamlets, Barking and Dagenham and centre for financial services Bank of the River Thames at Vauxhall, Nine Haringey leading the charge. precedes it. In recent years Elms and Battersea. Many are driven by the long-awaited introduction of the Elizabeth Line, The attraction of London as a place to live however, London’s evolving which will revolutionise transport across the and work is unlikely to abate, encouraged by and growing creative Capital and has already impacted house prices the mass-regeneration of previously unloved near the sites of new stations. areas of the capital. It’s encouraging to see and tech industries have much more thought being given to the role become more prominent The huge variety of house prices in London, that safe roads, open spaces and green areas which depend on an array of factors including play in people’s lives when regeneration on the global landscape. location, proximity to work and quality of life, projects are planned. With a population of nearly shows no signs of narrowing and ranges from 8.9 million, London is less than £300,000 at one end of the scale to Despite all of this positive news and, as stated £1.5 million at the other. in last year’s report, there is still more that can working to keep pace be done if the target for building enough new Average house price Average rent with the increasing demand Prices across the board continued to rise by an homes to accommodate London’s growing average of 2% in London over the past year, population is to be met. for housing. with big differences across boroughs. £488,644 £2,079 pcm House price growth House price growth Rental value growth Rental value growth over last five years five year forecast over last five years five year forecast 44% 13% 5% 19% 675 Average value of Units under Proportion of PRS ‘Outstanding’ new build (£psf) construction households primary schools £882 64,461 28% 9,664 Number of restaurants and cafés Underground/ Railway DLR/Tramlink 334 Overground 229 stations 79 stations 40,630 stations Number of shops CBRE Residential 8–9 London living 2018 CBRE Residential 10–11 London living 2018 Barking and Barking and Dagenham has already seen the The borough needs such growth, given that its introduction of some of the most significant population has risen at one of the highest rates Current population Average weekly earnings Dagenham regeneration projects in the UK, including the across London over the past 10 years. And 443 acre Barking Riverside initiative, which will while residential property prices remain at one include a new rail station and a river boat link of the lowest levels of all boroughs, this could 2 07, 2 26 £623 Once the home of multiple to central London. be set to change. Our research indicates that average house prices will rise by one of the major industrial sites, Population growth over next decade Employment The trend is set to continue with a newly highest rates (16%) over the next five years, Barking and Dagenham is announced £1billion development framework having already grown by 66% since 2013. % % now in the midst of major which will include 2,500 residential homes, 18 68.1 along with supporting infrastructure Barking and Dagenham has also seen one of transformation as thousands such as schools, libraries and community the highest rates of growth over the past five of new homes are built and centres. It’s all part of an overall plan years in rental prices at 27%, compared with launched by Barking and Dagenham Borough London as a whole (5%). Average rental prices transport links to central Council’s Be First regeneration company, in the region are predicted to rise by a further London improved. As a which aims to build more than 50,000 new 16% over the next five years. homes and create 20,000 new jobs over the result, the borough is ideal next 20 years. for commuters as well as those who want to be part of a brand new urban landscape. Sam Marco, Residential Sales says: It’s a very exciting time to live in Barking and Average house price Average rent Average yield Dagenham. The multi-million pound regeneration has already started to transform the £ 2 97,9 8 2 £1,200 pcm 5% borough and it is only getting better, with new homes, cafes, bars and restaurants drawing people from all over London. It is a first-time buyer hotspot and, with such a diverse mix of residents, there is a real buzz in the town centre. With a large shopping centre and five new schools in the pipeline, more and more families are also moving to Barking, taking advantage of the easy commute and the amenities on offer.” House price growth House price growth Rental value growth Rental value growth over last five years five year forecast over last five years five year forecast 66% 16% 27% 16% 5 ‘Outstanding’ primary schools 0.4% Average value of Units under Proportion of PRS Share of London new build (£psf) construction households office space £445 683 23% 55 Number of restaurants and cafés Underground/ Railway DLR/Tramlink Overground stations stations 5 stations 2 0 410 Number of shops 360 Barking CBRE Residential 12–13 London living 2018 Barnet With its already high population predicted to House prices are already on the rise in Barnet. grow by above-average rates over the next Over the past year they have grown by 9%, Current population Average weekly earnings five years, it’s not surprising to learn that no one of the highest rates of all London Barnet is a favourite location fewer than seven major regeneration schemes Boroughs and well ahead of the 2% average for families who want the are underway in Barnet. These will deliver growth recorded across the capital. 392,166 £835 around 27,000 new homes within the next best of both worlds: easy 10 to 15 years.