The best performing boroughs in the London residential market in 2018 have been revealed by new research from CBRE Residential.
Its annual report, the “Hot 100”, provides a snapshot of the biggest London housing market trends of 2018 by analysing several categories, including house prices and rental growth, highest levels of development, Help to Buy hotspots and lifestyle factors such as education provision and retail and sports facilities.
Mark Collins, chairman of residential at CBRE UK, commented: “Our annual review of the London residential market demonstrates that it is active and diverse, with a range of opportunities for investors, buyers and renters.”
Islington, Richmond upon Thames and Haringey were among the boroughs with the highest house price and rental growth in 2018. Economic forecasts indicate Hackney and Newham are set for future GDP and jobs growth, which CBRE believes will help the overall property markets going forward.
“Boroughs close to employment hot spots like Canary Wharf and the City continue to do well,” Collins noted. “For the third year running, Tower Hamlets topped the table for the highest number of new homes under construction, although this could all change next year as Newham has the largest pipeline for new homes and the highest number of construction completions during 2018.”
Thriving boroughs
The “Hot 100” report revealed that Islington has knocked Camden off the top spot for annual average house price growth with a 7% increase. This was followed by Redbridge (5.7%) and Richmond upon Thames (5.7%).
Islington, while close to the Square Mile, upholds a unique reputation for nightlife and attractive traditional housing, and remains a popular choice for young professionals and families as well as city workers. Its connectivity will be enhanced by the high-speed train network Crossrail stop at Farringdon.
The borough of Redbridge is also set to benefit from Crossrail. In fact, the area of East London is seeing significant regeneration and increased demand for homes around the Elizabeth line’s new stops in the borough, which are due to open at the end of 2019.
Meanwhile, Richmond upon Thames in the south west of London, which is best known for its riverside walks and green spaces such as Richmond Park and Kew Gardens, remains a favourite for families and commuters.
Across London, demand for homes in the private rental sector is growing. Kensington and Chelsea, the City of London and Westminster were three of the boroughs with the highest rental growth of 2018, though outdone by Haringey with 7% growth.
Due to plans outlined for the Upper Lea Valley Opportunity Area, Haringey is poised for significant change. Rental values are forecast to continue a growth path over the next few years, according to CBRE.
Economic growth
Economic measures were also another indicator of future growth identified by CBRE. Hackney, home of the ever-growing Tech City, is one of the biggest success stories of London’s East End regeneration programme. The programmes to further improve and update the area are supported by favourable economic predictions revealed in CBRE’s “Hot 100” report.
Hackney topped the rankings for highest forecast GDP growth over the next five years (18%) and is also set for the third highest employment growth up to 2021 (18.3%).
Newham followed in the forecasts for highest growth in jobs and GDP, and is benefitting from regeneration projects and the inclusion of new Elizabeth Line stations that will create demand for homes from commuters and families.
The east London borough includes Stratford, the site of the London Olympics, which has been skilfully recycled to provide a whole new residential area in east London. CBRE’s report recorded employment growth forecast up to 2021 of 24.20% and GDP growth of 18%.
Lifestyle factors
CBRE’s report also found the top London boroughs for shops, restaurants and sports facilities. Alongside market and economic data, these retail and leisure facilities are significant factors in where people decide to live.
From famous department stores, such as Harrods, to the boutique stores of Covent Garden, London is well known as a top retail destination. Westminster, home to the famous shopping destinations of Oxford Street, Regent Street and Bond Street, recorded the highest number of shops (5,115), and restaurants and cafes (1,757).
Elsewhere, Barnet, which is the largest London borough by population, had the third highest number of shops (2,044) and the fourth highest number of restaurants and cafes (441).
For those looking to stay active, Bromley recorded the highest number of sports facilities at 954, although per capita it is Richmond upon Thames that had the most sports and leisure facilities for its residents.
To view the full report, click here.