LONDON: BACK IN THE LIMELIGHT - 23.5% 19.3% - RPA GROUP
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LONDON: BACK IN THE LIMELIGHT 23.5% 19.3% 57,000 house price growth 5-year rental growth shortfall of homes across 2022-2026 ((JLL) (Savills) the capital ((Berkley Homes) 1
BACK IN LOVE WITH LONDON
POPUL ATION: 9,541,000
HOSTING GLOBAL COMMERCE:
Annual growth rate in 2022 1.2%
The #1 city for international HQs
2.4million population growth by 2036
AT THE DAWN OF GAME-CHANGING
TR ANSPORT INFR ASTRUCTURE:
CROSSR AIL & HS2
• A supply and demand situation: "New Housing starts
in the Capital are well below pre-pandemic levels
and are expected to remain well short of the
Greater London Authority target for 52,000 homes
per annum. This will underpin strong rental value
growth and house price growth across London." JLL
• GVA growth rate 6.9% in 2022.
• An economy that is outpacing Paris & Frankfurt.
• O ne of only two Alpha ++ cities in the world
(the other New York); the cities most integrated
with the global economy.
• More than just a centre for finance. Google & Apple
chose their European HQs to be in London; the city
has a rapidly growing media and technology sector,
particularly in start-ups.
• Home to the highest concentration of
leading universities in the world with a
student population of nearly half a million.
• Ranked most popular city in the world in
2021, its 6th consecutive win according to
Resonance, based on visitors, growth,
culture, GDP & # of Fortune 500 companies.
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LEVELLING UP IN LONDON
For so long the poorer relations to prime central property, London’s outer zones are catching the eyes of investors as
Londoners look for greater space and value – driving its peripheral markets.
“THE RACE FOR SPACE” A GOOD TIME FOR PRIME
Covid 19 has changed the way we live; the majority of Restrictions in travel have kept investors away from
working professionals now spending half their week the London market, this and the ‘race for space’ has
remote working, precipitating a re-examination of what resulted in a price correction in Central and Prime
we value in a home. UK agency Savills has coined the London, with the capital now offering better ,if not
trend the ‘race for space’ as Londoners look for larger, ‘good’ value.
more affordable homes in Zones 5 & 6, with access to
gardens and/or green space, trumping – for the first
“London’s prime stats are at their lowest in
a decade,” reported Savills at the end of
time ever – proximity to a train or tube station.
last year, a contrast to the market over the
In 2021, London’s highest asking price growth was six years previous which had turned most
recorded in the south-east borough of Bromley with investors off, unconvinced of gains to be made.
over 160 parks and excellent outdoor sporting facilities.
This year, however leading industry commentators are
predicting gains to be made in locations connected by SAVILLS PRIME CENTRAL
Crossrail. LONDON 5 YEAR FORECAST:
24%
“Even if people commute further but less
often, the quality of that commute will remain
important. Not only will it concentrate the
demand for family houses to areas with good
transport infrastructure, but it also looks set
to create a spin off market for city centre
boltholes.”
(Savills, January 2022)
“Prime Central London will outperform as international travel resumes.”
PRICE GROWTH FORECASTS
HOUSE PRICE CHANGE (%pa)
During 2020-21, out of the whole of the Greater London
UK, London saw the lowest growth at
2022 2023 2024 2025 2026 Average pa
4.2% compared with the highest in Wales
at 15.8%, the national average being 10.4%.
This was the strongest calendar year price
6.0 5.5 3.5 4.0 4.5 4.7
growth in the UK since before 2008.
South East
It is entirely because of London's modest
growth figures, in comparison with the rest 2022 2023 2024 2025 2026 Average pa
of the country, that we now see so much
potential in prime London property, believing 5.0 5.0 3.5 4.0 4.5 4.4
there is scope for stronger growth figures in
the coming year and beyond. Prime Central London
2022 2023 2024 2025 2026 Average pa
It is entirely because of London's modest growth
7.5 5.0 2.5 3.0 3.0 4.0
Source: JLL
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CROSSR AIL COMETH
2022 is the year for take-off for Crossrail with the first services scheduled to run from March and the final timetable
fully operation, at the latest, by May 2023.
We’ve long been talking about the effects of Crossrail on the London market, but now is the time - complemented by the
race to space - to invest in select locations in London’s outer zones connected by Crossrail. Such locations promise hotspot
status where house-buyers and tenants, no longer have to compromise on either space or connectivity, as Crossrail enables
them to have both; space and a swifter commute.
ALL EYES ON ACTON
“T he new high speed station at Old Oak Common
Acton is a particular hotspot along the route as it’s the only will help kick-start the UK’s largest regeneration
place in the capital where the termini of Crossrail and project, which aims to transform the former railway
HS2 will meet, at the newly constructed super-hub, Old and industrial area into a new neighbourhood
Oak Common. supporting up to 65,000 jobs and 25,500 new
homes. Working with the Old Oak and Park Royal
“O ld Oak Common will see high speed rail services to the Development Corporation (OPDC) the new HS2
Midlands, Scotland and the North and access to central station will contribute to a £15 billion economic
London and Heathrow via Crossrail. Its construction and boost over the next 30 years.” GOV.UK
operation will also drive the regeneration of the area
around it in West London.” HS2
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SUPPLY & DEMAND
In the first 11 months of 2021, London transactions totalled 1.36million
– 25% higher than the 2017-19 average showing that demand for
London property remains robust, which in turn will drive house prices
as the city continues its post-pandemic recovery.
TRANSACTION LEVELS BY BUYER TYPES:
MORTGAGED FIRST-TIME BUYERS +13%
MORTGAGED HOME MOVERS +31%
BUY-TO-LET INVESTORS +31%
CASH BUYERS +22%
(Savills)
EFFECTS ON THE RENTAL MARKET
London as a whole saw strong rental
Mortgaged landlords increased their share of the market
alongside home-movers. According to Savills “the average
growth in the final quarter of 2021 at
purchase prices for FTBs and BTL investors were similar, 6.2% with the greatest rises
at £250k and £220k respectively,” both concentrated on concentrated in Westminster (9.5%),
the lower end of the market.
Kensington & Chelsea (7.7%) and
A slow-down in the delivery of new homes, in large part Islington (7.4%).
because of the pandemic and its effect on supply-chains,
has meant that the squeeze on housing remains in the
capital; with housing delivery not expected to return to Increased demand in the rental market
pre-pandemic levels until 2026. Berkeley Group estimate it has been felt across the capital – with
to be an annual shortfall of 57,000 homes across the capital. RICS recording its highest quarterly
reading for London since reporting
19.3%
began in 1999.
Hayes & Harlington recorded an annual
5-YE AR RENTAL rental yield of 5.1% in 2021, although it
GROWTH was Barking that topped the table at
5.9%.
(Savills)
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INVESTMENT OPPORTUNITIES IN LONDON
OVERVIEW
HAYES VILL AGE With its rich heritage and refreshing take on modern living, Hayes Village is
HILLINGDON, LONDON an exciting new development located in west London, on the former site of the
historic Nestlé factory. The development offers a collection of one, two and
three-bedroom homes.
STARTING PRICES 1 Bed apartments From £288,000
2 Bed apartments From £481,000
3 Bed apartments From £523,000
PROPERTY DETAILS
Completion Date: Q3 2023
Tenure: 999 Year Leasehold
Building Warranty: NHBC 10 year Warranty
Ground Rent: Peppercorn Rent
Service Charge: 1 bed from £1,665 P.A. 2 bed from £2,105 P.A. 3 bed from £2,395 P.A.
Parking: £25,000 per space (subject to seperate negoitation)
YIELD Up to 4.8% gross
PAYMENT TERMS 10% upon exchange 90% upon completion
OVERVIEW
ONE WEST POINT One West Point is a landmark development located in the centre of the North Acton/Old
ACTON, LONDON Oak Common regeneration area – the only location where Cross rail intersects with HS2
and as such is set to significantly transform the locale whilst providing easy travel links
across London and the UK. One West Point will be the second tallest residential tower in
London and the tallest building in all of West London providing breath taking views of the
city alongside unparalleled luxury and amenities
STARTING PRICES 1 Bed apartments From £512,000
PROPERTY DETAILS
Completion Date: Q4 2022
Tenure: 999 Year Leasehold
Building Warranty: NHBC 10 year Warranty
Ground Rent: 0.1% or £1000 p.a.
Service Charge: £6.95 pdf
PAYMENT TERMS 5% upon exchange 80% upon competion
5% 6 months post exchange
5% 12 months post exchange
5% 18 months post exchange
OVERVIEW
BOOKBINDERS Ideally located in Acton, West London, one of London’s most sought-after districts
ACTON, LONDON sandwiched between the popular residential areas of Chiswick and Ealing, The first
phase in the transformation of Bollo Lane features 98 units in an array of mixed-use
spaces planned to create a true work live environment. Superb transport links with 2
stations under 7-min walk away, servicing the District & Piccadilly lines as well as
London Overground plus it is also a 7-min cycle from the nearest Crossrail station, Acton.
STARTING PRICES 1 bed from £460,000
2 bed from £599,000
PROPERTY DETAILS
Completion Date: Q1 2024
Tenure: 999 Year Leasehold
Building Warranty: 10 year Buildzone Warranty
Ground Rent: 350/450 p.a
Service Charge: £2.25 psf
PAYMENT TERMS 10% upon exchange, 90% upon completion
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Fo r i n f o r m a t i o n p l e a s e co n t a c t : i n f o @ r p a g ro u p l l c . co m All data and stats taken from Birmingham City Council, Dataloft, JLL and Savills.
The information contained in this promotional material is provided for general guidance and for illustrative purposes only.
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