As the end of the year draws near, investors and landlords begin to seriously consider what the next twelve months may have in store, and where the next property hotspots may be found.
Since the pandemic, the property market has been in full recovery mode, and while supply levels are still low, demand remains high.
While the Bank of England has announced that interest rate rises are imminent, experts predict that these will be gradual and that property prices will continue to grow for some time to come.
Consequently, now could be a fantastic time to invest - lock in a low rate before they start climbing, and take advantage of some up-and-coming London locations that still offer plenty of room for capital growth.
Here at Portico, we've compiled a list of some of the best London property hotspots to consider investing in for 2022, based on desirability, connections, rental yield, and scope for capital growth.
This large north London town, made famous for being home to the popular football team, the Tottenham Hotspurs, is a stand-out investment option for 2022.It has benefited from significant regeneration works in recent years, the latest round being the new Tottenham Hotspur Stadium located on White Hart Lane. Additionally, plans are underway to build new homes at Tottenham Hale, and an impressive Tottenham Hale station upgrade should complete by the end of next year.Tottenham's transport and rail links are already strong; however, the property market has experienced slower growth than its borough of Haringey as a whole, leaving plenty of opportunity for some great returns on investment (ROI). For example, average property prices across Haringey rose by more than 10% in 2020 - a further 4% in the last year - and currently sit at £693,870. Tottenham, meanwhile, is sitting at £515,474, leaving significant room for equity growth for anyone looking to invest.
Seven Sisters is a district of South Tottenham that sits a little closer to central London and partially encompasses a conservation area. This district - supposedly named after seven local sisters who planted seven elm trees in a circle that created a thoroughfare between Tottenham and Camden - is well-considered to be one of the most up-and-coming areas of Tottenham. This attraction is, in part, thanks to the close proximity to areas such as Walthamstow and Stoke Newington, which have also improved significantly to become highly desirable residential neighbourhoods in recent times. Current average house prices in Seven Sisters are hovering under the £500k mark at £479,020. It's a quiet, diverse area, and while it may not have quite as much going on as its neighbouring districts, Seven Sisters offers a relatively affordable London living with a host of vibrant areas in close reach.
If you are in the market to invest in a busy, vibrant, multicultural community that produces excellent rental yields, then Edmonton is the spot.
With excellent transport links to Liverpool Street and easy access to the A10 and North Circular A406, Edmonton is well connected. It is also home to Latymer School, one of the top Secondary Schools in the country.
Furthermore, the town of Edmonton has been improved through a variety of regeneration works, including a complete North Middlesex University Hospital refurbishment, a major upgrade to Edmonton Green. It has also been included in the Meridian Water redevelopment project - a scheme worth £1.5b that will bring approximately 5,000 new homes and 3,000 new jobs to the area.
There are some beautiful parks throughout Edmonton, and the high streets are buzzing with a wide variety of exciting cuisines. Edmonton has a lot going for it, so it's surprising that it is still such an affordable option when it comes to buying property in London. Average house prices in Edmonton are currently sitting at just £375,889.
It was on our list for ‘Where to buy property in 2021’ and it’s on our list again this year.When it comes to value for money, it doesn't get much better than Barking. The average price of a property in Barking is well under London averages, yet significant regenerations are promising for growth.
Currently, the average price of a house in Barking is £357,796. The town of Barking, nestled in the borough of Barking & Dagenham, lies just 10 miles east of the city centre, with excellent transport links including the Hammersmith & City and District Lines. Furthermore, the Riverside Overground station and the Thames Clippers 'Uber Boat' service are opening in 2022.
The regeneration works include over a thousand new homes in Abbey Quay, a new restaurant, retail outlets, and a gymnasium adjacent to Abbey Green Park and the River Roding.
One of North-East London's largest towns, Ilford is popular with both investors and first-time buyers. Not only is it well-positioned for commuting, but it also produces high average rental yields - factors that are very attractive to buy-to-let investors and landlords.
Ilford is one of the stations that will soon be connected to the Elizabeth Line, resulting in trains leaving for central London every five minutes. Connection times to destinations such as Heathrow Airport, Canary Wharf, Paddington, and Tottenham Court Road will be significantly improved.
There are many green, open spaces to explore and enjoy in Ilford, and the town centre is alive with numerous pubs, restaurants, and takeaway options. The impressive Olympic Stadium is also not far away, with facilities ranging from the aquatics centre to the London Stadium.
Currently, the average property price in Ilford is £475,541.
In the north of the borough of Barking and Dagenham lies Chadwell Heath. It's more of a suburban neighbourhood with more open space and larger residential properties than many other outer London areas. The town offers easy access to transport links, via the A12 and the Chadwell Heath station - it will also feature a fast London rail connection once the long-awaited Elizabeth Line opens in 2022.
Just two miles from Romford, Chadwell Heath offers a combination of affordable property prices, excellent transport links, great shopping, and a diverse range of leisure options.
Chadwell Heath offers up an affordable slice of suburban living, conveniently located on the edge of London, with the opportunity to secure equity gains.
Currently, properties in Chadwell Heath are valued at an average of £382,870, but with the Elizabeth Line finally nearing completion, this level of affordability may not last long.
With interest rates set to climb, now is the time to consider investing and locking in a great deal - at the time of writing, rates are still historically low, and expected to increase very gradually.
Barking and Ilford are being regenerated as we speak, and will soon enjoy even better access to London than they currently do once the Elizabeth Line is open. Fantastic, recently built one-bedroom homes in the centre of Barking are available between £220,000 and £250,000, representing exceptional value for money with plenty of scope for equity growth. At under £200,000, starter homes in Chadwell are also pretty hard to beat!
If you would like to discuss investment opportunities or find out more about these investment hotspots, contact us on 020 7099 4000.
You can also get a free online property or rental valuation by clicking here.
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