When Chancellor Rishi Sunak announced a stamp duty holiday on the first £500,000 of a property purchase price, there were predictions of a boom in property sales and a sudden surge in enquiries. But, well before that announcement, London had seen its own steady growth in both sales and house price rises, up 2.3% year on year.
Interestingly, reports show that buyers are currently prepared to pay a premium for a spacious, ‘work-from-home’ suitable property with a garden. With that in mind, here we take a look at current available property in East London, where the average property price stands at £468,989 as of August 2020. This is a rise of 3.30% in the last three months (since May 2020).
London property price rises ahead of the average
July saw the sales market up 44% on the same time last year, with many looking for quick sales as record prices returned. East London continues to be an area of interest as buyers prioritise the needs of a garden after having been locked in their houses for several weeks, and with prices being more affordable in the likes of Waltham Forest, Hackney, Barking and Dagenham.
One of the biggest factors is more future looking – the coming of Crossrail, which will offer high-speed transport across London and beyond. And, the area is also popular with younger buyers who like the community aspect and the creative feel of the area. There’s a lot of new investment going into the area too – new housing developments and incoming businesses. All in all, a recipe for growth.2 Bedrooms, 1 Bathroom, Hackney Road, Hackney, E2 | £400,000 (Leasehold)
Get in touch with our Islington estate agents for more properties in Hackney or if you’d like to get a valuation, sell or rent out your property.
Although house prices are rising as demand grows, much of East London offers affordable houses for first time buyers and younger families. In Quarter 1 (Jan to Mar) 2020, inner London prices averaged at £588,700 and £424,200 in outer London.
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3 Bedrooms, 1 Bathroom, Frith Road, Leyton, E11 | £725,000 (Freehold)
Get in touch with our Leyton estate agents for more properties in Leyton or if you’d like to get a valuation, sell or rent out your property.
Expanding transport links
Value for money is a strong motivating factor, but so too is the ability to travel around and get to work easily. Although local industry is growing and businesses are moving in, many East Londoners still face the daily commute.
The area is already well served with underground links to the City and the Docklands Light Railway, as well as good local bus services. Stratford Station also has good rail links to the national network and European services.
But, with the coming of Crossrail, travel across the city will become even easier. The Elizabeth Line, as it’s known, will have 14 stations in the area when it’s finally completed during the 2020s. As the name suggests, the new line goes across London, reaching the main business and retail areas and beyond to stations in Hertfordshire.
Travel times will be considerably quicker from East London into the City, with some estimates of journey times cut by around 35 percent. For people working in central London, that’s a big plus.
And, for anyone with an eye on a future sale, that travel advantage should add even more to the value of the property as the Elizabeth Line opens.
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As viewers of ‘Eastenders’ will know, community spirit is alive and well in East London, and it’s not just for the traditional East End families. Younger house buyers appreciate the friendly atmosphere and the many amenities in this part of London.
Aside from the bars, cafes and trendy restaurants, there are gyms, street markets and waterside venues. The London Stadium, host of the 2012 Olympics, is now home to West Ham United football club, but it still puts on many other national sporting events in the velodrome, swimming pool and other venues in the Olympic Park.
East London also boasts one of the largest wetland nature reserves in the capital for people who want to enjoy tranquillity in the middle of the busy city. And, the Lea Valley is a national sports and recreation centre, so there’s plenty of free time activity to attract people of all ages.
2 Bedrooms, 2 Bathrooms, Shacklewell Street, Bethnal Green, E2 | £635,000 (Leasehold)
Get in touch with our Islington estate agents for more properties in Bethnal Green or if you’d like to get a valuation, sell or rent out your property.
Creative business centre
Many of the amenities grew up alongside the creative and technology businesses that moved into the area earlier. Although the regeneration of Canary Wharf and Docklands boosted employment in the area, the emphasis there was on the financial sector and bigger business.
Further East, design groups, technology and media companies, architects, specialist retailers and similar small businesses, attracted by lower rents, moved into refurbished warehouses or buildings that were once home to the textile and printing industries. The area around Shoreditch, for example, originally known as Silicon Roundabout, is now home to East London Tech City.
Many of the firms moving in were start-ups who took advantage of the shared office accommodation as an affordable way to grow their businesses and work closely with companies in similar sectors. But, big name tech companies are there too – a Google campus, A Facebook Developer Garage and sites for BT, EE and Cisco projects.
The combination of employment opportunities and a great night-time and leisure economy has proved a strong pull for this area of London, particularly for entrepreneurs and younger workers who want a better work-life balance.
More investment and regeneration to come
While the current crop of price rises is built on existing housing stock, major investment and regeneration programmes in a number of the East London boroughs is set to make the area even more attractive to buyers. The Prime Minister’s ‘Build, build, build!’ initiative aims to boost house building as a key element in economic recovery and there is already evidence of that in East London.
In Poplar, for example, The Blackwall Reach scheme has investment of around £300 million to build more than 1500 new homes. Crisp Street Market is being regenerated with new leisure and entertainment facilities thanks to funding of around £280 million.
West Ham is scheduled for major development with around 3800 new homes planned for the brownfield site of the former soap factory. Half of the site will be dedicated to open space, restaurants, gym, small business units and local shops.
Add to that smaller developments across the area and the total number of new homes is likely to exceed 53,000 by 2024.
2 Bedrooms, 1 Bathroom, Comyns Road, Dagenham, RM9 | £289,995 (Freehold)
Get in touch with our Forest Gate estate agents for more properties in Dagenham or if you’d like to get a valuation, sell or rent out your property.
The impact of lockdown and the stamp duty holiday
Although the early period of lockdown imposed a definite slowdown in home moves, commentators believe that the lockdown experience may have a positive effect on house prices.
As many people experienced working from home for the first time, they re-evaluated what they wanted for a home. The opportunity to get a home with more space, possibly at a lower price and with great local amenities is proving attractive. Add the good upcoming transport links for the occasional commute to work and working from home looks a lot more attractive, practical and affordable.
The Chancellor’s stamp duty initiative added a further bonus. With no stamp duty to pay on the first £500,000 of the price for a home between now and March 31st next year, interest in properties around that price bracket accelerated in outer London boroughs.
Bromley in South East London saw an astonishing 83 percent rise in enquiries following the announcement. Nearly half of the rise was for homes between £400,000 and £500,000, 26 percent for lower priced homes between £300,000 and £400,000 and 40 percent for properties between £500,000 and £750,000, which also benefited from a lower rate of stamp duty. Rightmove calculated that a buyer in London would save around £15,000 on average.
Encouraging signs for continued growth
The full impact of the pandemic on employment and the housing market is difficult to predict, particularly with the end of the Government’s furlough scheme in October.
However, we believe that the underlying rise in house prices in areas like East London will continue because so many of the other factors come into play – affordability, transport, leisure and work-life balance come into play.
Find your East London home
The stamp duty holiday and the many affordable homes on offer make this a good time to make your move to a property in East London. We have many attractive properties available to buy, or rent, get in touch with our friendly team to find out more!
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