Why would you want to invest, rent or buy in a regeneration area? If it’s being regenerated, there must be problems to start with. That’s the simple response, but look a little deeper and you’ll find that your purchase or home move could prove valuable from two perspectives.
For a start, it means the area is improving, but more important for anyone concerned about property prices, there’s an opportunity for a good return further down the line. Investment specialists CBRE found that, on average, annual property price growth for properties in ‘halo’ areas around regeneration sites was 4.9 percent above wider house price growth.
Secondly, if an area is being regenerated, residents stand to benefit from new openings and offerings in the area, as well as a general improved look and feel. With that in mind, let’s take a look at what’s happening around London.
London continues to benefit from mass regeneration works
As the country’s capital, London continues to benefit from significant regeneration works, despite the extent already carried out in preparation for the 2012 Olympics.
There are some colossal projects in the pipeline in the coming years, with many already underway. The UK capital sees approximately £16.2bn in investment annually, and the extent of its regeneration efforts are set to secure these wins in the coming years.
According to a study by Lichfields, approved regeneration projects in the capital could increase housing stock by 151%, a boost desperately needed to restore balance as continued inventory lows put ongoing pressure on market conditions.
The report outlined that current estate regeneration projects are most common in the borough of Tower Hamlets, with 23 projects. Meanwhile, Islington has 17 projects, Lambeth has 16, Hackney has 15, and Southwark has 13.
‘Soft’ London regeneration projects
The Greater London Authority’s regeneration arm is active in many parts of London. They support small and large projects that improve the environment, social infrastructure and quality of life for local residents and complement the investments in property by developers. Here are a few examples.
In Barking and Dagenham
, a diverse area with high levels of poverty and unemployment, the regeneration team supported a new community hub at the local college. Residents can now access an innovative, inspiring learning environment. There is also a wider plan
to develop over 50,000 new homes and 20,000 new jobs in the next 20 years.
In Wembley, a financially excluded area within Brent, the team is supporting an initiative to reinvigorate unused retail units by converting them to spaces for community activities.
Balham in South London is receiving support for a number of initiatives to regenerate the High Street as a more attractive place for public events, and also received a major investment of £2.6 million to upgrade Balham station.
In Walthamstow, the regeneration of the Wood Street area is helping to bring new life to businesses in the High Street.
These initiatives are helping to provide a ‘soft regeneration’ of deprived areas, making them more attractive to existing residents and potential property buyers. But the regeneration initiatives are also matched by hard investment in new property and infrastructure that will stimulate growth and attract new residents and owners around the capital.
Related: Where to buy property in London in 2021
North London Regeneration
Meridian Water, Enfield
Meridian Water in north London is located in the Upper Lee Valley, one of the Opportunity Areas designated for large-scale development. The 20-year development plan will see 10,000 new homes created together with public open spaces and a new station already in place. 40% of these new homes are to be designated for affordable housing.
The Islington council supports the regeneration plans of many key parts of the borough, with current planning briefs to include Finsbury Park Station improvements and 335 new homes and 2,000 sq ft of retail, leisure, and office space as part of the City North development. Prioritising greener spaces and encouraging healthier public pursuits such as cycling and walking are also key to current project plans.
In addition to the community project in Wembley, Brent Council is also seeing a development of 1,600 new homes near Northwick Park. The regeneration programme will also cover new university facilities, walking and cycling routes and public open spaces to improve the local environment.
This district of north London, best known for its shopping centre, has plans for 6,700 new homes part-funded by Homes England. The shopping centre is also set to be revitalised with further benefits from a new Thameslink station, a new transport link set to open in 2022, offering trains to King’s Cross in 15 minutes.
East London Regeneration
Tower Hamlets continues to benefit from considerable growth and change, with its population having doubled since 1990. A strategic approach to supporting its continued growth has seen a Regeneration Team established by the council to deliver on the Mayor’s vision for the borough’s regeneration. Multiple projects include the development and improvement of depleted housing stock, particularly for the Crossways and Ocean Estates.
Walthamstow’s regeneration has seen property prices increasing by over 37 percent over the previous 5 years with ambitious plans for further expansion of jobs, housing and environmental improvements.
Walthamstow, London, UK
Barking Riverside is set for London’s largest regeneration project with plans for 10,000 new homes, seven new schools and improved transport links, including a new overground station and a river bus service.
The borough of Newham has seen some striking price rises through regeneration. Average prices have doubled since 2010, with data from the ONS showing that the total population in the borough has risen rapidly. In fact, the number of households in Newham is expected to increase by 10.4% between 2018 and 2028.
More recently, plans to build employment and marine hubs and family homes in the Royal Docks have been given the green light.
Despite this, properties still remain affordable around 26 percent lower than the London average.
Plans for part of the Ford Motor Company’s former plant to be converted to a new estate - Beam Park, which will provide more than 3,500 new homes with extensive community facilities and large areas of public open spaces around the River Beam - is currently awaiting approval.
Developer Peabody already has the approval to build 1,500 affordable homes on the 45-acre site, with hopes to expand the development to include shops, restaurants, new pedestrian, cycling, and transport connections, a secondary school, and multiple new public spaces.
South London Regeneration
The Southwark regeneration scheme is England’s largest council home building programme, aiming to construct 11,000 new council houses by 2043. Other plans included in the scheme include redesigning an old biscuit factory into over 1,500 new homes as well as a new secondary school. New pedestrian routes to run through neighbouring railway arches are also part of the project.
Regeneration for Lambeth is centred around improving the borough’s social, economic, and physical places. Current plans include 300 new homes
and a new theatre and community spaces for Somerleyton Road, 194 new homes and facilities as part of the New Town Hall plan, and a major expansion to the Brixton town core. This expansion will significantly upgrade the retail, employment, and residential sectors for the area.
Spanning 53 acres, developers British Land
are currently undertaking one of the largest mixed-use regeneration efforts in London, with an agreement in place with Southwark Council to deliver a brand new town centre, a mixture of innovative public spaces, and up to 3,000 new houses for Canada Water.
The plan also includes three million square feet of new workspace and retail, leisure and entertainment spaces, incorporating health, educational and social infrastructure. In addition, the area is set to be transformed into a transport hub with the extension of the Jubilee Line by 2029.
Thamesmead in south-east London has an ambitious 30-year regeneration plan. At its heart is a new Crossrail link and investment in 15,500 new homes and 8,000 jobs, coupled with improved access to canals, riverbanks, lakes and nature reserves. The aim is to create a desirable, sustainable new neighbourhood just 20 minutes from the West End. The work will include improvements to 5km of riverbank and 7km of canals.
The Greenwich Peninsula, regarded as Europe’s largest regeneration project, doesn’t have just one neighbourhood undergoing regeneration, it has seven – all with major development plans.
The area reportedly will see investment of £8 billion by developers aiming to create an important, sustainable riverside community by 2032.
The Royal Docks, for example, is set for the city’s first new major shipyard as well as 25,000 new homes within the next 20 years, alongside existing infrastructure such as the Docklands Light Railway and London City Airport. The Old Kent Road district will benefit from some 20,000 new homes and 10,000 additional jobs.
In Woolwich, the Royal Arsenal Riverside development of 5,000 new homes has brought new life into the area, and there are plans to convert former warehouses to provide additional homes.
West London Regeneration
Old Oak Common
Old Oak Common and Park Royal form part of the West London regeneration corridor, which will cover Ealing, Southall and Hanwell. A £26 billion, 30-year project is under way to transform 1,600 acres into new homes and businesses with a major transport Crossrail/HS2 ‘superhub‘ at its centre. The new high street will connect the superhub to the £3bn Imperial College.
The Brentford Project aims to take advantage of the district’s riverside location with plans for 876 new homes by the river together with an arts centre, theatre and leisure centre. Nearby Brentford Lock West will feature 700 new homes, shops and offices, with a further 250 affordable homes to be built in a final stage.
There’s a development with a different flavour at White City where the emphasis is on landscape and outdoor living. Around 2,300 new homes in a high quality site have been developed, featuring luxury amenities, including parkland, private courtyards, water features and other private facilities for residents.
An additional £8 billion masterplan to bring 6,000 new homes, 20,000 new jobs and 2.2 million square feet of office space to White City is already well underway.
Portico can help
There’s a great deal of regeneration across the capital, with a mix of high quality properties, affordable housing, community facilities, transport improvements, new infrastructure and public open spaces set to transform London. While much of the development work is ongoing, there are many opportunities for purchasers and investors to find new opportunities with rising values. If you would like more advice from our local property experts, please contact us on 020 7099 4000. View all our available London properties for sale.
To find out the current value of your property or rental property, and see if its value has increased due to regeneration, try out our no-obligation online property valuation.