London property
The months of September and October usually see a flurry of activity in the London property market that is second only to the spring rush during April and May, and this year things look set to be very busy indeed, particularly in East London and Canary Wharf. At Vanet we are expecting an influx of interest, for both free/leasehold purchases and rental property in the East of the capital, as more development announcements increase the opportunity for investment in this buoyant part of the city.

 

E14 and Canary Wharf keeps growing
The big news is the ongoing rise and rise of Canary Wharf, with new developments set to expand this burgeoning part of the capital, and create even more interest in prime London property in E14 and Canary Wharf among smart investors. Growth in prices in the Canary Wharf area have outstripped the rest of London over the past year, with prices strong since 2013. In fact, E14 was ahead of the game when it came to recovery, revelling in a growth spurt underpinned by a robust UK economy, which has seen steady month-on-month growth for some time now. While markets may have been steady in other parts of London too, the East End has consistently shown positive growth and remains a key investment area for developers and those with strong property portfolios.

 

Buy-to-let
One of the major growth sectors has undoubtedly been the buy-to-let market. “Investment in multiple occupancy developments has been strong throughout 2014 and 2015, and it shows no signs of abating any time soon,” comments Joel Brookes from Vanet. “We have seen a marked increase in the number of investors looking for buy-to-let opportunities in E14 and Canary Wharf, and with new developments now green lit those opportunities, particularly for investors willing to buy off-plan, will increase considerably in the next 12-18 months. The smart money is putting capital in buy-to-let developments sooner rather than later, and the next few months looks like it could be very busy,” he adds.

 

Business as usual…
August usually shows a slight fall in property prices across the board, primarily because the number of buyers is reduced. This seasonal adjustment is nothing to be concerned about, as it happens every year to varying degrees. In London, the majority of central locations are relatively immune from the fluctuations of the market, showing declines of less than 1% across the board. However, any declines in prices are simple bumps in the road, and as demand rises during the busy months of September and October those figures will adjust back up, showing a net return on investments that will put portfolios back into the black.

 

Canary Wharf leading the way
The Canary Wharf Group has already begun work on Canary Wharf Residential, a mixed-use scheme of over 3,000 homes, as well as considerable infrastructure including affordable housing, schools and roads, which will make the project highly desirable for individual buyers and those looking to increase their portfolio with multiple purchases for buy-to-let. Returns on lets are strong, making this a smart choice.

Other developments in Canary Wharf and the E14 area include the proposed residential tower built by Berkeley Homes on Marsh Wall, which will be the UK’s tallest residential building once it has been completed. While space on the ground may be diminishing rapidly, Canary Wharf developers are building upwards, increasing the prospects for multiple-occupancy investments.

 

Across the capital
Elsewhere in London a flurry of building activity is increasing the housing stock in all boroughs. Mayor Boris Johnson has announced that his key target of 50,000 new homes as part of his high-profile Housing Zone scheme has been met ahead of schedule. He has also announced that a further three further zones will be fast tracked to provide additional stock in Brent, Westminster and Sutton. The relaxation of planning regulations indicates that while demand still currently outstrips supply in the capital, new activity across the city will improve the availability of good-quality, high profile housing developments in the next 18-24 months.

We could be looking at the beginning of a very busy time in the London property market, with expansion into boroughs outside the normal M25 perimeter attracting investment in more diverse parts of the city. E14 and Canary Wharf are still at the top of most people’s wish lists, but watch out in coming months for developments around areas such as Shoreditch, Canning Town and Greenwich. If you have property to sell or let then now is the ideal time to bring your property to market.

 
All figures and quotes are accurate at the time of publishing  

Sales: Vanet Property Asset Management is a trading name of Countrywide Estate Agents,
Registered in England Number 00789476. Registered Office: Greenwood House, 1st Floor, 91-99 New London Road, Chelmsford, Essex, CM2 0PP

Lettings: Vanet Property Asset Management is a trading name of Countrywide Residential Lettings Limited, Registered Office: Greenwood House, 1st Floor, 91-99 New London Road, Chelmsford, Essex, CM2 0PP.
Registered in England Number 02995024 which is an agent and subsidiary of Countrywide Estate Agents, Registered Office: Greenwood House, 1st Floor, 91-99 New London Road, Chelmsford, Essex, CM2 0PP.

Registered in England Number 00789476. Countrywide Residential Lettings Limited is regulated by RICS. Countrywide Estate Agents is an appointed representative of Countrywide Principal Services Limited which is authorised and regulated by the Financial Conduct Authority.