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.

Winners & Losers of Property in 2021

Winners & Losers of Property in 2021

A look at some of the people who came off better in 2021’s UK Property Market, and those who got less lucky with the tumultuous circumstances the last 12 months have brought us.


WINNER: Stamp Duty Tax Holidayers

Arguably the biggest driver behind the busiest property market since 2007, the stamp duty holiday saw thousands allowed to avoid paying tax on properties below the value of £500,000.
Though this helped drive up prices by nearly 20% in some areas of the UK, lots of people were able to get on the property ladder avoiding a tax that could have priced them out previously.

LOSER: Hesitant Property Sellers

Rightmove reported that house sales between March and April 2021 were up 55% on 2019 levels, with demand for properties reaching new levels.
Though house prices remain high, many estate agents expect the market to cool in 2022. Those who sat on the fence over selling their property in 2021 potentially missed out on making more money from their sale.

WINNER: Homebuyers in London

One area in the UK that in some cases saw house prices decrease against the curve, was London. Nationwide reported that the capital was the only region in the UK to experience lower annual price growth in 2021 compared to 2020, with 6.2% growth year-on-year.
Average house prices there may still be sky-high, but some buyers may have got a property at a lower price than expected.

LOSER: Homebuyers in Leeds

The High-speed railway project, HS2, which has been in development for years, received more updates in 2021. Firstly, the completion of the tracks joining London to Birmingham is now likely to be delayed from 2026 to 2029-2033. Worse though for people in Leeds and others on the proposed ‘Eastern Leg’, is that their link to HS2 was scrapped in November 2021. That’s despite Transport Secretary Grant Shapps saying in May, “We are going to include HS2 on the eastern leg to Leeds”.

WINNER: Property Investors Flipping Homes

‘Flipping’ is where a property investor purchases a property, then looks to sell it a short time later at a higher price.
Figures from Hamptons showed that 19,000 properties were flipped during the pandemic, with the average investor making £48,190.

LOSER: Buyers Delayed by the Pandemic

Our ‘How I got on the Property Ladder series’ revealed buyers who, after agreeing purchases early in 2021, had to wait several months to move in. Even while the COVID situation in the UK began to stabilise, the Aldermore found that between March 2020 and March 2021, the pandemic cost first time buyers over £1 billion in extra costs, or around £5870 per person on average.

“Purchasing my home during the COVID-19 Pandemic was a challenge. I made my offer in March 2020, and completed at the end of June 2020, due to lawyers working from home. Furniture was also delayed by several months, so I didn’t move in until August 2020” -Lillian (How I Got on the Property Ladder Series 3)

Where to Buy Your Next Property in 2022?

Where to Buy Your Next Property in 2022?

Here’s where Property Investors and Landlords should consider their next Property purchases over the next year, taking into account recent price growth, regeneration projects, and increased demand.


Birmingham

RENTAL YIELD: 6.56% HOUSE PRICES: £233,148 (11% up)

Birmingham’s population is currently rising by 10,000 people a year and has the youngest city population in Europe. The city will become more closely connected with London too when HS2 is launched.
Businesses like Goldman Sachs, Deutsche Bank, and HSBC have also launched headquarters in the City.
All this means Birmingham’s housing and rental demand should continue to grow.

Manchester

RENTAL YIELD: 6.53% HOUSE PRICES: £247,726 (11% up)

Like Birmingham, Manchester has a young population, with a quarter of those living in the City between 0-20 years old. Manchester also has a series of attractive ongoing regeneration projects, including the £1.5 billion project in Spinningfields to give Manchester a new “central business district”.
According to Zoopla, rental demand doubled in Manchester from July to September 2021.

Slough

RENTAL YIELD: 3.7% HOUSE PRICES: £394,336 (8% up)

Slough is going to be one of the big beneficiaries of Crossrail, with the Berkshire town set to have a train to central London arrive every 5 minutes during peak times.
Slough itself already has a strong economy, with O2 and Mars UK holding their headquarters in the area. The Slough trading estate is also the biggest business park in all of Europe.
With a better connection to London, housing demand could rise significantly.

Edinburgh

RENTAL YIELD: 5.35% HOUSE PRICES: £313,242 (6% up)

Edinburgh’s population has grown by 50,000 people over the last 10 years, and for those looking to rent out BTL properties, Edinburgh is an attractive spot. As of 2018, there were a total of 26,000 undergraduate students at the University of Edinburgh. That, combined with a moderate growth of 6% in house prices over the last year, makes Edinburgh a great spot for Property Investors.

Cambridge

RENTAL YIELD: 5.8% HOUSE PRICES: £523,979 (2% up)

Like Edinburgh, Cambridge is a university city with plenty of opportunity for BTL. According to figures from Maxine Lester, tenants registering for rental homes are increasing 15% year on year (as of October 2021).
The catch is that there are 30% fewer properties coming to the market, causing a disconnect between supply and demand. That could bode well for future projections on an investment.