T
he forecasts for the property market are currently as chilly as the weather outside – pundits are predicting prices in London will fall anywhere between five or ten per cent this year – but that does not mean every postcode will feel the crunch.
Locations with great transport links, inward investment, or the kind of slow burn regeneration that a burgeoning cluster of independent shops and cafes can create, have a habit of outperforming underlying market trends.
At the very least they will be well placed to bounce back strongly when the housing market returns to recovery mode.
Here are four London neighbourhoods worth watching in 2023.
Penge, SE20
As buyers turn to south-east London looking for more bang for their buck this backwater the wrong side of Crystal Palace Park is starting to gain significant traction thanks to its good value, well-built Victorian townhouses, cottages, and period conversions.
You might also be able to pick up one of the area’s very pretty former almshouses, which have been converted into two-bedroom houses.
The plus points of Penge are its two stations, east and west. Trains to either Victoria or London Bridge take around 20 minutes (Zone 4).
Most local primary schools hold “good” reports from Ofsted – and Harris Primary Academy Kent House is “outstanding”. For older pupils the Harris brand also prevails with its Academy secondary schools in nearby Upper Norwood and Beckenham also getting top marks from the school’s watchdog.
On the downside Penge High Street is dreary – fast food and discount stores outnumber anything more fun – but it would meet all your everyday needs.
The Crystal Palace triangle is a short walk away, and there are also signs of a café culture evolving on Maple Road with local institution Bistro Chez Yves and the Blue Belle Café.
Price wise Penge has also seen the cold chill of the downturn start to bite, with prices down one per cent this year, according to Hamptons. To put that into perspective, however, it has seen growth of 82 per cent over the last decade.
Rotherhithe, SE16
Set on a bend of the River Thames, with amazing views over Canary Wharf, this former Elizabethan dock has so far missed out on the regeneration which has swept through neighbouring Bermondsey.
“My frustration with this area is that we have not moved with the times,” said Michael Petherbridge, area manager at Oliver Jacques estate agents. “The clientele has changed – it is mostly young professionals working at Canary Wharf – but we do not have the bars and restaurants.”
All that is set to change though, thanks to a £3.3bn regeneration plan at neighbouring Canada Water.
Over the next 15 years developer British Land will transform 53 acres of riverside land into a modern new town centre, with 3,000 new homes, and around three million sq ft of shops, restaurants, leisure and entertainment space, and offices.
Homes at The Founding, the first section of the development, go on sale in early 2023 (thefounding.co.uk), ahead of completion next year and later in the year a new boardwalk will open around Canada Dock itself.
“I think that when people start to see the development, which is finally going to create a real high street, their view of the area will change,” said Petherbridge.
What they will also find is good transport links with three nearby stations – Rotherhithe, Surrey Quays, and Canada Water. And a combination of Stave Hill Ecological Park and Southwark Park means it is a lot greener than most riverside neighbourhoods.
Weekends can be spent learning to sail, paddle board, or windsurf at Surrey Docks Fitness and Water Sports Centre, or drink at waterfront pubs like The Angel and The Mayflower.
Rotherhithe’s property is an endearing patchwork of converted factories, some very grand Georgian ship builders’ houses, streets of modest terraces, modern waterfront apartments (and some more dated buildings from the 1980s and 1990s).
So far regeneration hasn’t translated into outperforming house price growth – values inched up two per cent last year, found Hamptons, and by 49 per cent in the last decade.
Petherbridge estimates that a two-bedroom flat with water views would currently cost around £500,000 to £600,000. “In Canary Wharf for that price you would be looking at a one bed,” he said. “We are still undervalued, because Rotherhithe is a bit undiscovered.”
Finsbury Park, N4
Buyers priced out of Islington and Camden have increasingly started to consider the once-basic Finsbury Park and, perhaps as a result, the range of cafes, shops, bars, and restaurants along Stroud Green Road and Blackstock Road has got better and better.
A Zone 2 neighbourhood once dominated by cheap wholesale fashion shops and men selling counterfeit cigarettes now offers wine bars, coffee shops, sourdough pizza, delis, and gastropubs.
The eponymous park is packed on sunny days, and Finsbury Park is also close to the Woodberry Wetlands nature reserve and Clissold Park.
Michele Monticello, a partner at Michael Morris estate agents, has noticed the area change radically over the 20-plus years he has been selling homes there. “There are a lot more independent restaurants and places to eat,” he said.
And while the area certainly hasn’t reached peak hipster the buyer demographics have also changed as prices grow. “Before, it used to be quite an arty area with lots of artists and musicians,” said Monticello. “Now you tend to have a more conventional type of professional, working in law or banking.”
This kind of change is inevitable if you consider what a home in Finsbury Park costs nowadays.
With prices up five per cent in the past year and 72 per cent since 2012 a two-bedroom flat without a garden would come in at £500,000 to £600,000 (although Monticello said that during the pandemic garden flats were changing hands for £800,000 or £900,000). And one of its elegant four-bedroom townhouses would set you back around £1.8m.
This, however, is still a lot cheaper than living off Upper Street and Monticello anticipates that as more small businesses open Finsbury Park could become a similar sort of destination suburb.
Brent Cross, NW4
This impressive attempt to create a brand new 15-minute city on a gloomy brownfield site straddling the North Circular Road in north west London is well underway.
The £8bn project will eventually see 6,700 new homes built on a 180-acre site, along with parks and playing fields, sports facilities, office space, restaurants, shops (including a redevelopment of the existing Brent Cross Shopping Centre), and new leisure and cultural facilities.
And the whole site will, promises developer Related Argent, be carbon neutral by the end of the decade.
A massive milestone in the evolution of this monster 15 to 20 year project will be realised early this year when Brent Cross West station opens. It will join the Thameslink line with services to King’s Cross taking just over 10 minutes.
The first homes at Brent Cross Town are already on sale, with guide prices starting at £400,000 for a studio, £430,000 for a one bedroom flat, and £585,000 for a two-bedroom flat (brentcrosstown.co.uk). The first residents are due to move in in 2025.
Or buyers could attempt to cling to the coattails of the development by house hunting just north of the site where Hendon’s streets of good value early 20th century houses should start to see the benefit as BCT evolves. Expect to pay around £600,000 to £700,000 for a three bedroom house.
Local prices are already on the rise, up almost seven per cent in the past year, and by 64 per cent in the last decade, according to research by Hamptons.
FAQs
Where is the best place to buy in London for first time buyers 2023? ›
This is where to buy in London in 2023, according to a top buying agency. North Kensington, Herne Hill, Mayfair, St John's Wood and Acton have been picked out as the top places to buy in London this year.
Which area in London is best to invest? ›East London
In recent years, the site went through continuous transformation and rehabilitation, becoming a gentrified and well-liked commuter neighbourhood. East London provides exceptional value options for real estate investment.
Hendon, The Hyde and Mill Hill are all increasing in popularity, making them North West London's most up-and-coming areas. If you're looking to invest in your future by buying a property in a region which is becoming more and more sought-after, any of these areas would make a great choice.
Where is the best place to buy property in the UK 2023? ›According to our research, Manchester, Liverpool, and Leeds are the best places to invest in property UK for capital growth in 2023. These cities have future growth predictions of 11.7% by 2027 while also offering high capital gains over the last 12 months, with prices rising between 12-20%.
Is London property a good investment 2023? ›Now, however, most experts agree that increases are on the horizon for buyers in the capital. In the 2022 - 2026 Residential Report, JLL data suggests that in 2023, London is set to see the highest price increases in the country over the year at 5.5%.
Where is the best place to live in London in 2023? ›Crouch End has officially been named 2023's Best Place to Live in London by the Sunday Times. And yeah, we can see that. This North London destination is in its own little bubble of suburban tranquillity.
What area in London has highest ROI? ›Buy-to-let Barking and Dagenham
The average annual yield is currently 5.5%, making it the highest-yielding borough in Greater London for property investors, and one of the best buy-to-let areas in London. As of April 2022, it ranks as the cheapest London borough with an average property price of £336.126.
London's east and lately north east has been leading the charge for some time now in terms of the best returns in rental yields, with many of the Capital's highest rental yields concentrated in the region; Barking 5.3%, Dagenham 5.4%, Little Heath 5.5%, and 5.3% in areas of Romford.
Where is property growth the highest in London? ›The CBRE study reveals Southwark, Newham, Islington, Hackney and Camden as the five boroughs with the highest projected growth over the next ten years. Southwark is just a stone's throw from the City of London, while its riverside location makes it ideal for luxury developments.
Where are Londoners moving to? ›This year, 84% of first-time buyers stayed in the South of England, with 8% moving to The Midlands and 5% heading North. First-time buyers from London typically target more affordable commuter belt neighbourhoods, making up 34% of all buyers in Thurrock in H1 2022.
Which area in London is best to live? ›
- Borough of Bromley. Bromley is our top-rated London location, with an average score of 4.62 out of 5 among reviewers in the borough. ...
- Borough of Kingston upon Thames. ...
- Borough of Richmond upon Thames. ...
- Borough of Sutton. ...
- Borough of Islington. ...
- Borough of Hackney. ...
- Harrow. ...
- Croydon.
- Colindale Gardens, London, NW9. ...
- Beaufort Park, London, NW9. ...
- Wembley Parade, London, HA9. ...
- The Quarters Kilburn, London, NW6. ...
- Bradstowe House, Harrow, HA1. ...
- Eastman Village, Harrow, HA1. ...
- UNCLE, Wembley, HA9. ...
- The Rise, Wembley, HA0.
York saw the highest property price inflation of any town or city in in England in Wales during 2022, growing by +23.1% (£69,648) over the course of the last year. Since March 2020, average house prices in the historic city have risen by +41.9% from £261,183 to £370,639 (£109,457).
Where in UK is best for property investment? ›Over the five-year period, house prices for mainstream properties are forecast to fall by 1.7 percent. In 2022, the average house price in London ranged between 340,000 British pounds and 1.4 million British pounds, depending to the borough.
Is it worth buying investment property in London? ›London ranks second place in the table “Top Cities for Real Estate Investment in 2021”. Many investors view London as one of the best major cities that offer stability and liquidity, making it attractive for long-term investments. London has notoriously high house prices.
Is it a good time to buy London property? ›Surprising outlook in the Capital
72% of those in the South West said affordability was a barrier to buying a new property, whereas in London the number drops to 59%. This difference is also seen in those who think now is a good time to buy, with those in London at the highest level, at 23%. In Wales, it's just 10%.
West London
Upmarket places like Chelsea, Knightsbridge, Notting Hill and South Kensington are where you will find the rich and the famous, but there are some more affordable places in this region. Areas like Fulham, Putney and Hammersmith are all worth looking at.
With property prices slumping in 2023 and higher interest rates, we could see pricier mortgages for cheaper houses - as affordability takes precedence in the UK. While research from Finanze suggests residential house prices could fall 11% in 2023.
Can an American move to London for a year? ›
Contrary to popular belief, you need a visa to move to the UK if you are an American citizen. The only exception to this is that if you are visiting with no long-term plans, you can stay in the UK without a visa for six months – but you cannot work during your visa-free stay.
Where do rich Londoners live? ›The richest and most expensive neighbourhoods in London are definitely Chelsea, Kensington, Mayfair, and Knightsbridge! These neighbourhoods are known for their fashionable and expensive shops and restaurants, as well as being home to many of the richest people in the world.
What is the wealthiest town outside London? ›Virginia Water, Surrey
Virginia Water in Surrey consistently ranks among the highest value towns in England outside of London, according to Zoopla. As of July of 2022, the average price of a property here was of £1,681,981.
- Cash. People rarely think of keeping money in the bank as an investment. ...
- Stocks. Stocks and shares represent small pieces of equity in businesses. ...
- Bonds. ...
- Real estate. ...
- Annuities. ...
- Stocks and Shares ISA. ...
- Self-Invested Personal Pension (SIPP)
What is rental yield and how is it calculated? A rental yield refers to the value of rent you can expect to receive from your property in a year. To cover all necessary expenses while allowing you to make a reasonable return on your investment, anywhere between 5-8% is considered a good rental yield.
Who owns most houses in London? ›"The largest group of property owners in London are Indians, who are represented by those who have lived in the UK for generations, NRIs, investors from other countries, students, and families who travel to the UK for education," according to London-based residential developer Barratt London.
Is London property overpriced? ›With so much demand for homes in the capital, it would be strange if people weren't willing to pay over the market value. However, a recent study suggests values in the UK housing market are overvalued by 20%, and in London, the overvaluation might be as much as 50%, according to S&P Global Ratings.
What is the most popular property type in London? ›The research reveals that semi-detached homes (53%) are the most in-demand, followed by terraced (37%), detached (30%), and flats (21%). In comparison to the wider UK, all property types have increased in demand throughout London in the past year.
Why so many Londoners are leaving? ›Contrastingly, in 2021 more homeowners left London than renters for the first time in ten years. Aneisha Beveridge, head of research at estate agent Hamptons, explained that people fleeing London were likely to be in their mid to late thirties, looking for more space and a better quality of life.
Where do middle class Londoners live? ›With its picturesque Victorian houses and proximity to the King's Road and Chelsea, Fulham is a desirable suburb popular with middle-class families as well as young professionals. Putney is just south of Fulham, over the river, and is popular with Australians, New Zealanders and South African expats.
Where do rich Londoners have second homes? ›
According to DevonLive, some parts of Devon have the highest rates of second homes in the country. A total of 13,363 properties in Devon are classed as second homes, according to research by Action on Empty Homes - an 11.2 per cent increase compared to 2021, when there were 12,019 such properties.
Is it better to live in London or outside? ›The pace of life outside of London is much slower, and you're able to take advantage of more scenic surroundings. Lower cost of living and rent – You can get much more for your money when you're not paying rent in London, some are even able to buy a property much earlier when re-locating to the suburbs.
Is East or West London better? ›West London is cleaner and more cultured, while many Londoners tend to regard east London as 'rough' and 'dirty'. But it's a matter of individual taste, and more importantly it's about your budget. Beauty comes with a premium in every capital city, and London is no different.
Is North or South London better to live in? ›The north is a little bit less green. North London parks and other green areas cover 29% of the northern boroughs. If you love getting outdoors, sunbathing, running, jogging or just relaxing, choose south London for a more tranquil lifestyle. The same goes if you have children or are planning to.
Is North London Posher than West London? ›A new survey of Londoners reveals a tale of four cities: The West is posh, the East is poor, the South is rough and the North is intellectual. 1,294 Londoners were shown a list of adjectives and asked which four they most associate with each area of London - East, West, North and South.
What is the posh part of London West? ›Kensington. Often considered one of London's most desirable areas, there's much more to Kensington than its museums and royal heritage. The area is home to an array of luxury boutiques, fine-dining restaurants, green parks and period properties.
Is North or West London Posher? ›West London is typically seen as the more posh side of the city, while East London is known for being a bit more gritty.
Will London house prices rise in next 5 years? ›...
Contacts & Related Articles.
| Region | London |
|---|---|
| 2023 forecast | -12.5% |
| 2024-2027 forecast | +12.3% |
| Total 5 years to 2027 | -1.7% |
London house prices to 'fall 10 per cent by autumn' as interest rate rises send mortgage payments soaring. L ondon home owners were today warned of a 10 per cent slump in property prices by the autumn as higher interest rates send mortgage payments soaring.
What's happening to London house prices? ›House prices in London have risen by 3.2% over the last twelve months compared to an average increase in house prices across England of 6.9%. In absolute monetary terms, this translates to an average increase of £16,756 in London and £20,143 in England.
Where are houses selling fastest in UK? ›
Scotland is the quickest market in Great Britain, while London takes the longest to find a buyer on average (65 days). Across Great Britain, it is currently taking 55 days on average to find a buyer and a further 165 days to complete a sale.
Which city has the highest property price growth UK? ›- York. House prices in York have grown by a whopping £69,648 (23.1%) on average over the past year. ...
- Woking, Surrey. ...
- Swansea. ...
- Chelmsford, Essex.
Low interest rates have definitely helped increase house prices. Low-interest rates make buying a house more attractive than renting. Also, low interest rates mean that buying a house can give a better rate of return than buying other forms of investment, such as shares.
Is it cheaper to buy a house in the USA than the UK? ›House prices
In the UK the average house price is £242,415, compared to £122,073 in America.
Property & Housing
It's also on average more expensive to buy a house in the UK or London versus the US.
In the UK, there are no limitations on foreigners purchasing a property. In the UK, non-citizens and foreigners can also obtain a mortgage. Those who have been in the UK for less than two years and are unemployed, on the other hand, may have to meet more stringent requirements and pay a bigger deposit.
Will it be a good time to buy a house in 2023 UK? ›With property prices slumping in 2023 and higher interest rates, we could see pricier mortgages for cheaper houses - as affordability takes precedence in the UK. While research from Finanze suggests residential house prices could fall 11% in 2023.
Will houses be cheaper in 2023 UK? ›Prices will continue to fall by up to 8% in 2023 – due to mortgage rate increases putting pressure on prices as demand for properties reduces. There will be a recovery over the next two years – the Office for Budget Responsibility projects prices falling by 9% before rising in 2025.
Where is the best place for first-time buyers in the UK? ›- Leeds City Centre. Average asking price (April 2021): £159,972. ...
- Sheffield City Centre. Average asking price (April 2021): £124,097. ...
- Nottingham City Centre. ...
- Cardiff City Centre. ...
- Southampton City Centre. ...
- Liverpool City Centre. ...
- Birmingham City Centre. ...
- Norwich City Centre.
The percentage of London properties reduced in price has increased from 29 per cent last year to 38 per cent now. Meanwhile demand is 22 per cent lower than this time in 2022, according to Rightmove, and the average time to find a buyer in London is up to 70 days, from 57 days last year.
Is the end of 2023 a good time to buy a house? ›
The combination of persistent buyer demand and low inventory has driven property prices up. There are fewer sellers, so prospective buyers need to contend with higher housing prices. As such, if you buy a home in 2023, you're likely to pay a premium.
Are UK house prices dropping? ›UK house prices are expected to continue to fall despite surveyors' expectations that the housing market will stabilise over the next 12 months, a study has shown.
Should I buy a house in 2023 or 2024 UK? ›James said: "By buying in 2023 rather than waiting until 2024, buyers could jump in at the right time and secure a property at a better deal. As house prices aren't rising at the same rate as inflation, you could get your ideal property at a 'discounted' rate.
What is the average price of a house in the UK in 2023? ›Main points. Average UK house prices increased by 5.5% in the 12 months to February 2023, down from 6.5% in January 2023. The average UK house price was £288,000 in February 2023, which is £16,000 higher than 12 months ago, but £5,000 below the recent peak in November 2022.
Will mortgage rates go down in 2024? ›Despite forecasts of lower mortgage rates in 2024, don't expect them to bottom out to the record lows of the past decade, either, says Lawrence Yun, chief economist at the National Association of Realtors.
Is London property a good investment? ›London ranks second place in the table “Top Cities for Real Estate Investment in 2021”. Many investors view London as one of the best major cities that offer stability and liquidity, making it attractive for long-term investments. London has notoriously high house prices.
Is it a good idea to buy a flat in London? ›In short, yes! Buying a flat in London is a great investment for your money. With house prices continuously rising in the capital, it's an opportunity that shouldn't be missed. The market conditions have never been better to buy a property in London.