Spotlight on: Newham03 Apr 2017
In the Autumn of last year, the Office for National Statistics (ONS) released some interesting figures. According to these figures, house prices in Newham were rising faster than any other London borough.
Property prices in some of the more affordable outer London boroughs are rising faster than in central London, where market activity has slowed. It seems there is less capacity for house price growth in inner London boroughs, while in the outer boroughs, annual house price growth is generally stronger.
According to the latest figures from Rightmove, over the last year house prices in Newham increased by 13%, and were 38% higher than in 2014, when the average house price was £270,031. This is good news for homeowners in Newham who might be looking to sell within the next few years, but it should also prove interesting to a potential landlord looking to invest in an area where
strong yields and capital appreciation are likely, especially if property forecasts prove correct, that outer London boroughs will outperform inner London boroughs in terms of house price growth over the next few years.
Where is Newham?
The London Borough of Newham lies to the north of the River Thames. Formed from the Essex county boroughs of West Ham and East Ham, it is five miles east of the City of London. Travelling by tube into central London takes only 30 minutes, ideal for central London workers.
What’s changing for Newham?
The borough’s fortunes have been on the rise since the London 2012 Summer Olympics – Newham was one of six London boroughs to host the Olympics. Today, there are many regeneration projects taking place, both in the north and south of the borough, but especially around the Royal Docks.
Some transport upgrades are ongoing. This includes Crossrail. Five stations within Newham will form part of the Elizabeth Line – Stratford, Maryland, Forest Gate, Manor Park and Custom House – and the price of properties near to these stations have increased, and will likely continue to increase. As a result of Crossrail, routes from Newham into central London and the City will be much quicker and more frequent, with 24 trains an hour. In addition, the completed DLR line and Jubilee Line Extension have further boosted transport links to and from Newham.
Where to invest in Newham:
A new development at Royal Albert Dock has been hailed as ‘London’s third business district’, while further development is taking place at Silvertown Quays, Waterside Park, and the Royal Albert Basin. London City Airport is nearby, while transport infrastructure improvements – namely Crossrail – will aid accessibilty. The area as a whole is set for a housebuilding and jobs boost.
Demand for property in this area rose by 26% in 2015. The majority of properties in East Ham are Edwardian or Victorian terraces on tree-lined streets. There are multiple parks in the area, while the nearby tube stations of East Ham and Upton Park are both on the Hammersmith & City and District lines.
If you’re a potential investor looking for where to invest in London, don’t overlook Forest Gate. Forest Gate is surrounded by multiple stations that will be served by the Elizabeth Line, so if you want to benefit from the Crossrail boom, Forest Gate is the place. Gentrification has taken place, partly as a result of Crossrail, and partly as a result of the 2012 Olympics.
Are you keen to buy or let property in Newham? If you want to find out more about buying or investing in property within the borough or elsewhere, contact us today.
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