London property has proven repeatedly to be more resilient over the rest property markets across the UK. When considering purchasing an investment property for long term capital growth, it is important to focus on the confirmed future plans for regeneration in London.
London boroughs continue to seek inward investment into regeneration projects, large and small, to boost their local economies and to benefit their residents. Some local authorities began to regenerate their main retail areas and central business districts 5 to 10 years ago (eg. Croydon) while others are just beginning (eg. Woolwich).
The recent changes to the ‘Use Classes Order’ (a government regulation that sets out how land and buildings can be used) will allow greater flexibility in suburban centres as local authorities seek to find new uses for redundant shops, shopping centres and offices.
In addition, there are two significant transport projects that will open in 2021 and 2022, enhancing the prospects of several locations:
- The Elizabeth line among the most significant infrastructure project even undertaken in the UK. From improving journey times across London, to easing congestion and offering better connections. An estimated 200 million annual passengers will use the Crossrail, served by 41 stations, including 10 new stations, and increasing central London rail capacity by 10%.
- The Northern line extension (NLE) between Kennington and Battersea will help regenerate the Vauxhall, Nine Elms and Battersea areas by supporting new jobs and homes. The extension is scheduled to be completed in autumn 2021. Up to 25,000 jobs and 20,000 new homes could be created. This could potentially contribute as much as a £7.9 billion growth to the UK economy.
Across London there are many areas currently undergoing or are in the planning phase of significant regeneration:
- Woolwich: £398 million regeneration scheme which will provide 1,600 new homes, create new jobs, apprenticeships and economic growth
- Turnpike Lane – Wood Green – £3.5 billion investment to transform the high street and create a major shopping destination for North London. 4,000 new jobs will be created
- Wembley Park: Over £1.5 billion has been invested in ‘Wembley Calling’, a 10-year regeneration vision that will provide 5,000 new homes and 1,000 new jobs
- Elephant and Castle: £4 billion regeneration programme that aims to create a new destination for London in the next 15 years. 5,000 new homes will be delivered, 450,000 SQFT of retail space and 10,000 new jobs will be created
- Battersea: Battersea station, a 42-acre development, one of the largest regeneration projects in Europe, with a GDV of £9 billion will provide 4,000 new homes, over 250 new shops, 1.25 million square fee of office space. – 500,000 square feet secured by tech giant Apple
- Croydon: Long-term regeneration programme, supported by the Mayor’s Regeneration Fund. The £5.25 billion investment will provide 30,000 new homes planned over the next 10 years, and will put Croydon in a strong position to optimise growth and jobs
- Greenwich Peninsular: Currently undergoing a £770 million regeneration spanning over 150 acres. According to JLL, the regeneration will create a new district for London, with 15,000 new homes and 13,000 new jobs
David King, Director, Consulco Real Estate
Stavros Aristodemou, Financial Analyst, Consulco