London’s Southbank around the Shard, which includes riverside Southwark, Borough and parts of Bermondsey, is experiencing a mini property boom driven by extensive regeneration, infrastructure improvements and residential development, drawing in young professionals and experiencing rapidly rising prices, according to Chestertons.
Prices in the SE1 postcode have risen by 106% in the five years since the lowest point of the downturn, according to a local market report from Chestertons, surpassing pre-crash prices by and far outstripping the London average increase over the same period, which is 51%.
The Shard development has proved a beacon for commercial regeneration, attracting investment and jobs to the area, while the number of new homes in the area, coupled with ongoing improvements to London Bridge station, is attracting young professionals, many of whom work in the booming tech, creative and financial services industries.
Matt Johnson, Sales Manager in the Tower Bridge office of Chestertons, comments: “The residential sales market has not been without its challenges this year, the number of transactions has fallen slightly in fact when compared to 2014, and we’ve seen slower price growth than last year. But owners are still enjoying average sales values in SE1 that are 70% above their pre-global-recession peak in 2008.
“When it comes to the new homes sector, however, there’s no sign of a slow-down,” Johnson continues. “Coming into the final quarter of the year, a total of 2,916 homes in 21 schemes were under construction and a further 4,146 homes in 22 schemes had planning permission. One Tower Bridge (Berkeley Homes), NEO Bankside (Native Land) and One Blackfriars (St George) have all achieved strong off-plan sales. Investors have also been very keen to buy here, owing in no small part to the rising demand from young professionals moving to the area.”
Laura Kitts, Lettings Manager at Chestertons Tower Bridge, adds: “The lettings market in SE1 has really picked up in 2015, displaying continuous signs of growth and confidence. Tenant demand was nearly 8% higher in the first three quarters of the year compared to the corresponding period of 2014, and the number of homes available for let was up by more than half. The wider choice of lets available hasn’t dampened rental growth, either, with the average rents on new tenancies having risen by around 5% over the past year alone.”