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.
‘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
In addition to the community project in Wembley, Brent Council is also seeing a development of 1600 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.
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 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.
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 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.
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.
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.
Part of the Ford Motor Company’s former plant is being converted to a new estate – Beam Park, which will provide more than 3,000 new homes with extensive community facilities and large areas of public open spaces around the River Beam.
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.
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.
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.