SPOTLIGHT ON LEWISHAM

SPOTLIGHT ON LEWISHAM

A breakdown of the regeneration, house prices and key changes to the London Borough of Lewisham.

HOMES FOR THOSE WHO LIVE IN LEWISHAM

Brasted Close has some 2-bedroom homes left on its development, with people who have lived in Lewisham for five years able to obtain a mortgage there.

The full development comprises 11 permanently affordable homes, sold for 50% of its market value, and will be completed in Autumn 2022.

TWO TOWERS TO CREEKSIDE IN 2022

In November 2020, the Lewisham council gave planning permission for two 25+ storey towers to be built, but they will be without any social housing.

Subject to completion in Autumn 2022, Creekside will provide 56 affordable homes with shared ownership available.

Two Towers, Creekside development [All rights to 853 London]

HUNDREDS OF NEW HOMES ON POST-WAR SITE

Bringing over 300 homes to Catford in southern Lewisham, Excalibur Estate is a regeneration project taking place on the site of post-war bungalows.

Phases one and two have already been completed and phase three, delivering 102 properties, will be finished in winter 2023.

MINI DEVELOPMENT IN BROCKLEY

Completing this summer, Endwell Road is a smaller development that will bring nine new council homes on a disused garage site.

Though approved before the Government’s announced aim of concentrating of building on brownfield sites, this development fits right in with that scheme.

OVERHAUL TO NEW CROSS ESTATE

Ready in autumn 2023, Somerville Estate in New Cross will sit 11 minutes away from Queens Road Peckham station and will bring 23 new homes to the area, all at London Affordable Rent levels.

In addition, it brings landscaping, footpath and lighting improvements plus electric car charging points to the area, which already has an existing housing estate that will benefit from this.

BRAND NEW HMO LICENSING SCHEME

On the 14th of June, Lewisham Council launched a scheme that will mean HMOs (Homes in multiple occupation) will require a license to operate in and will go through an inspection before being approved.

At least 6000 homes in the borough will need a license in order to operate, as the council has set out a task to tackle “poor quality housing”. The standard fee is £500.

LIVING ACCOMMODATION FOR THE DISABLED

The Mayor of Lewisham Damien Egan led the ‘topping out’ ceremony of Mayow Road in February 2022, and the project is set to be completed this summer.

The 32 home development is being delivered in partnership with the NHS and will provide living accommodation for residents with challenging learning difficulties and/or autism.

Spotlight on: Newham

Spotlight on: Newham

The London Borough of Newham The London Borough of Newham

A breakdown of the regeneration, house prices and key features of the London Borough of Newham.

 

AN OVERHAUL TO CANNING TOWN

Canning Town is currently undergoing a £3.7 billion scheme where 10,000 new homes are being developed in the area, with 3500 homes having already been completed.

In 2019, Newham opened a new walkway between Canning Town and Poplar, allowing people to reach Canning Town station without crossing the A13. This was part of the area’s aim of going fully carbon neutral by 2030.

THE CARPENTERS ESTATE REDEVELOPMENT

This 23 acre site next to Stratford Station and close to the Olympic Village and Stratford Westfield was given the green light for redevelopment by residents in December 2021.

The redevelopment will consist of 2000 homes with 1000 homes at social rent levels, and the first will be completed by 2025 if all goes to plan. As well as new homes, nearly half of the existing homes will be refurbished and upgraded to make them more eco-friendly, starting this year.

ONE OF THE CHEAPEST BOROUGHS IN LONDON

Though not quite as cheap as neighbouring Barking and Dagenham, Newham’s average asking prices in April 2022 according to Rightmove was £447,000 in the bottom six in all of London.

The same site says its prices were actually 1% down on its 2019 peak, and Home.co.uk puts average rents at £1785 pcm.

GIVING NEWHAM MORE GREEN SPACE

The council is funding £5.3m worth of improvements to Newham High Streets, with the aim being to improve the look, feel and function of Queens Market, and make public space improvements.

On a similar note, the council has agreed to deliver 400 electric car charging points in the borough.

THE EFFECT OF THE ELIZABETH LINE

With Forest Gate, Manor Park and Stratford train stations all in the borough of Newham, the area has seen the highest boost from the launch of Crossrail of any affected London borough.

Prices across the borough have grown by £200,000 over the past decade and with Crossrail set for full completion next year, there’s still room for even stronger connectivity in the area.

PLANS FOR REGENERATING FOREST GATE

The redevelopment at Durning Hall in Forest Gate has faced backlash over the last year, over fears of losing the community centre which has stood for 60 years.

Nevertheless should it go through, the area can expect to see a development of 90 homes split between two buildings, with 35% of them aimed to be at “affordable rents”.

FTBs FLOCKING TO EARLHAM SQUARE

The recently completed Earlham Square is one of the biggest developments built in Forest Gate in recent years and has improved the look and feel of the high street.

Sitting a stones throw away from Forest Gate station, the development still has three bedroom apartments available via shared ownership, starting at £152,000 for a 25% share.

CONCLUSION

Often burdened with a reputation for crime, pollution and poverty, The recent and planned regeneration in Newham and affordable house prices has seen the Borough become one to watch in London.

The breakthrough at Carpenters Estate is news to keep an eye on, and with less crimes being committed in 2021 than any year going back to 2016, and affordable but ever rising hosue prices, Newham is an area to keep an eye on.

 

 

 

THE NEW PROPERTY SCHEMES ANNOUNCED IN SPRING

THE NEW PROPERTY SCHEMES ANNOUNCED IN SPRING

Here’s a review of the announcements in the property industry after the wake of the spring budget at the end of March 2022, and further schemes announced by the Department of Levelling Up..

VAT “ABOLISHED” ON ENERGY SAVING MATERIALS

Rishi Sunak has said that his VAT cut on green home materials would make big savings for buyers, explaining that the tax savings on installing a solar panel set could be worth £1000, and it would save £300 per year in energy bills.

There has been pushback though, suggesting that the complexities around installing these materials would mean the 20% tax-cut doesn’t apply very often to buyers.

BANK OF ENGLAND BASE RATE RISES AGAIN

For the third meeting in a row the Bank of England’s base rate rose (see below), this time up to 0.75% in March 2022. The significance of this is that banks have hiked their interest rates up, which affects mortgage repayments.

For example, a 75% LTV loan with NatWest of £225,000 over 25-years, would have seen your repayments rise by £28 a month after the change.

THE SOCIAL HOUSING REFORMS

The Department for Levelling Up announced a series of measures aiming to give greater power to tenants in March. Part of these were steps forward in legislation that has objectives like treating social housing residents with respect, and supporting them for their first step in ownership.

The big aim though, is to halve the number of “non-decent rented homes” by 2030.

GREATER TARGETING ON “BAD” SOCIAL LANDLORDS

Otherwise known as “naming and shaming”, the other part of the social housing announcements were that the Government could publicly state which social landlords in the UK were failing standards, based on complaints by tenants.

One point even mentioned publicising on social media where and when serious findings have been found against landlords.

Minister for Social Housing Eddie Hughes MP:
We have published draft legislation to toughen up regulation of social housing landlords. This includes naming and shaming those landlords who fail to meet acceptable living standards and giving tenants a direct channel to raise their concerns with government.”

HOUSEHOLD SUPPORT FUND DOUBLED

The fund has been doubled to £1 billion, after the vulnerable households support fund was set to end on the 31st of March, so now local authorities will get extra funding and divide it to those they deem most in need of it.

The fund was first introduced in September 2021, as a fund for vulnerable families to obtain living essentials.

Spotlight on: Manchester

Spotlight on: Manchester

Sold prices in Manchester have risen by 21% since their 2019 peak, with average prices currently standing at £248,000. Here’s why you should consider investing in a city that’s developing at a rapid rate..

NEW JOB OPPORTUNITIES IN MANCHESTER

Plenty of large businesses have moved in to Greater Manchester through large regeneration schemes, and Media City UK is perhaps the largest. Home to the BBC, ITV Granada, the University of Salford and over 240 other businesses, this is a vibrant employment hotspot that’s centred around high-spec connectivity.

STRONG CONNECTIVITY IN THE NORTH OF ENGLAND

Manchester has been described as the heart of the north, due to it’s connectivity with other cities around. It’s within an hours drive from Liverpool, Leeds, Preston, and Stockport. Manchester Airport is one of the busiest in the UK, and London is now just over 2 hours away by train.

THE POSSIBILITIES BROUGHT BY HS2

HS2 has been pushed back and the Leeds leg has been cancelled, but there are still great potential benefits to be brought. Manchester comes as a part as the second phase, and it will slash travel times to London. It will also bring benefits to nearby towns around Manchester. Around 90,000 homes are expected to be built across the lines due to the HS2 project.

HS2 new plan UK, benefits to Manchester
The planned legs of HS2

SOARING DEMAND FOR BUY-TO-LET

In November 2021, Zoopla reported that rental demand in Manchester had doubled in the three months prior. They followed that up in February with data showing that rental growth in inner-areas of Manchester had outpaced all cities in the UK bar London. Their outer-area growth was just outpaced by Leeds. Manchester is also home to two large Universities.

PROPERTY PRICES LOWER THAN EXPECTED

With 25% of the population under 21-years-old, property demand in Manchester is only going to continue growing. That makes it intriguing to see that Manchester’s average house prices of £248,000 are well below the current national average.

Lillian’s story – How I got on the Property Ladder (Series 3)

Lillian’s story – How I got on the Property Ladder (Series 3)

About me

Name: Lillian A.

Age: 30 (28 years old at time of purchase) Occupation: Solicitor

I purchased my property solo without any family assistance or government schemes in 2020. I seriously saved for 2.5 years, knowing that my aim was to put down a 10% deposit, plus cover all the other costs e.g conveyancing fees, furniture, etc. I tried to balance enjoyment with saving, so it didn’t seem like such a chore, but kept any treats/expenses reasonable so it wouldn’t have a big impact on my savings goals.

I was looking at properties on and off for around a year, but eventually found a newly renovated 2 double bed flat with a garden in East London (the same area where I grew up). Initially I was looking at houses, but soon realised that looking at the square footage of a property is key, as some flats and houses have a similar amount of space. Don’t be disillusioned by a property just because it’s a house, especially if it’s not your ‘forever home’.

Purchasing my home during the COVID-19 pandemic was a challenge, as it slowed down the process – I made my offer in March 2020 and completed at the end of June 2020, due to the lawyers working from home. Furniture was also delayed by several months, so I didn’t move in until August 2020. Even without a pandemic, patience during the property buying process is needed.

TOP TIPS

1. Figure out what your costs are likely to be (e.g deposit, solicitors fees, furniture etc.) and divide that by your ideal timeline for buying a property (e.g 36 months). This will tell you how much you need to save each month to reach you goal.

 2. Write down your (realistic) must have’s and start your search 6-9 months before you intend to buy. Take your time!

3. Amongst other things, when searching compare the square footage, energy rating and location of the properties. These points are sometimes overlooked, but make a difference once you move in.

4. Make sure your life/finances are in order. Having a salary that will allow you to comfortably afford a mortgage plus a good credit score, will make the mortgage process a lot smoother.

5. Finding a good conveyancer can be difficult, so ask friends and family for recommendations and read as many online reviews as you can.


If you are interested in being involved in the next series, please DM us or contact us
info@propertycohort.co.uk

Why you should invest in a property in Birmingham

Why you should invest in a property in Birmingham

Birmingham is one of the fastest growing cities in Europe and with house prices at £234,827, there’s never been a better time to invest into the West-Midlands area.

A thriving and expanding economy

Birmingham is the third biggest city in the UK, with a population of 2.607m as of 2020. Of that demographic, 64.25% are working age.

That population is one reason why businesses like HSBC, Deutsche Bank, and PWC have built headquarters in the city. HSBC’s created 1000 jobs alone.

The benefits of HS2 Railway network

Although it has been delayed till around 2033, when Britain’s planned high-speed railway is built, it will cut the journey time between Birmingham and London by 40% to one hour and 21 minutes.

The city will sit at the heart of the rail network, which will boost property prices.

Properties in 1-mile areas around London’s Crossrail saw their prices climb by 66% in 8 years.

HS2 Railway network

Ongoing regeneration projects in the city

Birmingham has a series of major regeneration schemes currently ongoing. The Big City Plan will create 50,000 jobs, and pump £2.1 billion into the local economy. The Midlands Metro Expansion will further improve transport links for the city. ‘Paradise’ is a £700m project adding 1.8m square feet of office space in the city centre.

Growing recent rental demand

According to Barrows and Forrester, there was a 25.2% rise in rental demand in the Birmingham area in 2021, one of the largest increases in rental demand recorded last year across the UK.

As businesses have made their headquarters in the city, it has attracted workers from across the midlands, and with an average gross rental yield of 5.25%, there’s scope to make strong returns.

Your chance to invest in Birmingham

Property Cohort have many investment opportunities in the Midlands and North of England.

Email us at: investments@propertycohort.co.uk to book in a strategy session and view your opportunities.