One of the main developments in the London property market this month has been that the number of private renters in the capital has surpassed the number of homeowners for the first time in more than ten years.
According to data from the English Housing Survey published by the government, there are currently 898,000 households in London who are private renters, compared to the 883,000 householders who live in mortgaged homes. As reported in the Telegraph, the number of renters has more than doubled from the 405,000 households which were renting in 2004, while the number of mortgaged homes has reduced by 17% from where it stood at 1million ten years ago.
According to Vanet’s Head of Sales and Lettings, Paul Bartolo, “these statistics present starkly the facts that have been long suspected by many: today in London we are living in a changed housing situation in which a growing number of people are renting instead of owning.
“This itself is a natural result of an overall increase in house prices, relatively static salaries and the increasing demand for accommodation in London. London is an exceptionally popular place to live, particularly for young professionals, and for those with properties to rent, this is a particularly lucrative time. “
Mapping London’s changing property prices
Where to live in London is a question which is asked frequently by renters and buyers alike, while landlords and property investors are always keen to know which areas are performing best. The average price of properties and how well connected specific areas are, are both of particular relevance when answering these questions, and eMoov have recently produced a highly useful visualisation of these core factors.
The London Underground Property Price Tube Map shows the average prices for each Tube stop on the London Underground. Useful for home hunting (or determining where to invest next), the map reveals that the most affordable houses in Zone 1 are to be found around Aldgate East (£535,920), and Lambeth North (£660,167); in Zone 2 it’s West Ham (£313,054) and Canning Town (£322, 601); Zone 3 is East Ham (£274,206) and Upton Park (£283,134), while the cheapest houses overall are to be found out in Zone 4 around Barking station (£237,337), and in Zone 5 around Dagenham East (£237,792).
The Telegraph meanwhile has published a map which shows London ‘hotspots’, such as West Ham and Upton Park in East London, where demand is showing the highest increases, and where demand is the strongest overall. According to the map’s creator and author of the article, Isabelle Fraser, “the strongest increase in demand over the past year has been in the outer boroughs near the new Crossrail stations, as people wake up to the commuting potential offered by the trans-London train line, which will run from Reading in the west, to Essex in the east, and is expected to open fully in 2019.”
Joel Brookes, Director of Vanet, commented that, “how well connected a particular area is, is always going to be a significant factor in where people choose to live and what areas are popular, particularly in a large city like London. People want to be able to have a relatively short and simple commute, something that is not always possible in the capital, and Crossrail will clearly open up new opportunities for commuters as well as for landlords and those selling property.
“Canary Wharf, Custom House, Woolwich and Stratford will all have Crossrail stations, as will East London areas closer to Central London, such as Whitechapel and Liverpool Street,” he continues. “This can only increase their desirability in the build-up to the launch of Crossrail, and the opportunities for living in East London and working in the West will certainly increase.” If you own property in an area that will be affected by Crossrail and you’re intrigued as to how the value of your property may change, send us an enquiry via our valuation page or call 0207 042 0033.
London property news in brief
Last month we looked at increases in property sales in Canary Wharf by Qatari investors, as a result of falling oil prices. Now, according to CNBC, Chinese and Middle East investors are currently ‘the dominant buyers’ of real estate in London, while Russian investors are predominantly renting. The article echoes the oft-mentioned sentiment that London property is seen as being a ‘safe haven’ amidst global economic instabilities.
The chairman and founder of house construction RedRow, Steve Morgan, has meanwhile claimed that recent changes to stamp duty have ‘killed’ the property market in Central London. If true, this may see increases in activity in areas further out, such as in Canary Wharf and other upcoming areas of East London. Finally, three of the most valuable skyscrapers in the UK have been revealed to be in the UK. The HSBC Tower (£990m), Citigroup Tower (£971m) and One Canada Square (£935m) were placed #2, 3 and 4 respectively, some considerable way behind The Shard (£1.49bn) in London Bridge.
All figures and quotes are accurate at the time of publishing