Traditionally and historically, homebuyers would expect to pay a premium for a brand new home. But in recent years, the cost of acquiring a brand new property has fallen more in line with resale property prices, helping to boost demand for new homes in the process. What’s more, new build homes are generally not a bad bet when it comes to investing in residential property.
Not only can new home owners expect to possess a property with a wide range of mod cons, but they could also expect to slash their annual energy bills, thanks to the fact that new build homes are built to current regulations making them significantly more energy efficient.
As more housebuilders transform to a more green-friendly approach and commit to innovation, quality and sustainability – those investing in new build homes can often expect to benefit from capital growth during both construction stage and upon completion.
Growing housing demand and a general shortage of new homes being developed, has helped to push up new homes prices across many parts of the country, particularly in London, but where in the capital is worth investing?
London based Portico estate agent’s has identified its top 10 new build property hotspots, selected with today’s tenant in mind, so they are generally based near a good transport link in desirable or up-and-coming areas that potentially offer good prospects for capital growth.
Croydon is a metropolitan area soon to benefit from a £5.25bn regeneration programme, which promises to transform the town centre. Westfield also have plans to build a luxury shopping centre in the area, which will likely push up property prices as we’ve seen previously in the boroughs of Hammersmith and Fulham and Newham. Better still, residents can travel into Victoria in just 14 minutes, making this south London borough an easy choice for renters on a budget.
2. Nine Elms, Battersea
Another area that’s benefiting from a multi-billion pound investment programme is Nine Elms. Touted as the “next big luxury area”, it will soon be home to a new Tube station, a revamped high street and the American Embassy, which will drive more international workers to the area.
3. Canary Wharf
Canary Wharf is one the most established of the new build communities that have sprung up over the past decade, extremely popular with young professionals working in the business district. It also has one of London’s most sophisticated travel hubs, integrating the DLR, Tube and Thames Clipper river bus services. Moreover, when Crossrail is fully operational in 2018, the line will provide direct connections to Heathrow Airport and a number of east-west destinations - further enticing renters and investors to London’s financial centre.
Bermondsey is another area that has undergone a positive revival, this time as a result of the regeneration of London Bridge, which has attracted large business such as News Corp into the area. It’s also quite the foodie mecca, attracting young professionals and business types who want a central location, a string of trendy amenities and contemporary, luxury accommodation.
5. King's Cross
King’s Cross, once an industrial wasteland known for its underground night life, is now a thriving cultural and business community, home to some of the biggest companies in the world as well as a string of new restaurants and bars, a huge Waitrose in Granary Square and the art installation Pond Club. Google are currently spending £1bn on a London HQ in this trendy part of town, which will no doubt attract a wave of tech professionals and continue pushing up prices.
Property prices have soared in east London over the last few years, thanks to the impact of the Olympics and the resulting gentrification. Aldgate is an area that is growing in popularity. It’s close to fashionable neighbourhoods like Shoreditch and within walking distance of the City, making it an ideal spot for trendy young professionals with a work hard, play hard mentality.
7. Bromley by Bow
Also within close proximity of the Queen Elizabeth Olympic Park, Bromley by Bow offers affordable accommodation, good transport links into London and an up-and-coming, trendy vibe. There’s a low supply of luxury rental homes in the area, meaning that landlords here tend to generate healthy returns as well as good prospects for capital growth.
Investors have been queuing up to get their hands on the new developments dominating Dalston’s skyline ever since Boris Johnson re-opened the Overground station, Dalston Junction, in 2010 - which takes residents into Highbury & Islington Rail in under 5 minutes. The area ruled is by young renters and arty types, who are attracted to the area’s trendy eateries and cafes, cool rooftop bars and the delights of London Fields just to the east.
Despite property price rises here outperforming most of London, Stratford still remains affordable for both buyers and tenants, making the area an extremely popular place to live. The near completion of Crossrail will no doubt drive further growth in this area of east London, so we believe Stratford has the most growth potential in the coming years. It's a key hub into the rest of east end.
Crossrail will arrive at Hayes & Harlington station in 2018, which will be key for pulling in renters and homebuyers wanting affordable property but also access into central London. As well as good transport links, Hayes offers healthy rental yields, great schools and easy access to the M4, the M25 and Heathrow airport.