E14 and in particular the Canary Wharf development area continued to be a huge draw for investors in 2015, and while other areas of the capital have seen modest rises in value, Canary Wharf has consistently performed well. So why is the Docklands area so desirable, and can it hold its own against the up and coming areas to the west of the city in 2016? 
 
An investor’s dream
In November we talked about how Canary Wharf was showing particularly strong first half figures in 2015. In fact, the Land Registry reported that Canary Wharf sales were up by 7% in Q1 and Q2. A relaxation by lenders on the availability of mortgages encouraged those looking to expand their portfolios to be more affirmative when it came to buying property both on and off-plan. There has been a noticeable increase in the number of investors buying off-plan in 2015, demonstrating a renewed faith in the future of the property market once again.
 
Buy-to-let – a real success story for Canary Wharf property
As with any property the driving consideration has to be location, location, location, and Canary Wharf is probably one of the most ideally suited positions in London for young professionals, wealthy investors and those who want premium quality property for the buy-to-let market. But why is the buy-to-let market so strong in E14 and the surrounding areas? “The main reason has to be the sheer number of international businesses making the East End of London their operations base not just for the UK, but for Europe,” comments Joel Brookes from property experts Vanet. 
 
“Far Eastern companies in particular look at the Canary Wharf area as an ideal location to set up home. The centre of the capital is already overcrowded and finding a premium location is next to impossible in the Square Mile. But Canary Wharf, the Isle of Dogs and the surrounding area gives companies more options, which in turn draws more workers to the area. This is why buy-to-let in this area is so popular as an addition to any property portfolio,” he explains.
 
As we discussed towards the end of last year, banks and lenders are also now more open to providing financial assistance for buy-to-let investors, and the number of developments in the area mean that there continues to be plenty of stock to choose from. The most popular are one and two-bedroomed apartments that can be let out on medium to long-term tenancies of around twelve to twenty-four months. But what is becoming very clear to property firms is that it is no longer enough to simply introduce tenants and landlords to one another. Now landlords in particular are expecting a complete property management service, particularly as many landlords are based not in London, but abroad. “Landlords for Prime rental property in Canary Wharf expect us to take care of everything, offering an end-to-end management package that takes into account not only the needs and expectations of the landlord, but those of the tenants too,” explains Joel Brookes. “Many tenants are corporate clients who may rent out more than one property, so they’re investing a great deal of money into the arrangement. In response, property management services in Canary Wharf have to offer a much greater level of involvement in the process, from start to finish,” he adds.
 
A firm future for Canary Wharf
Over the last year, property management services in Canary Wharf have seen a steady increase in the number of rental inquires, but have also seen a significant rise in the number of purchases too. First-time buyers have made a return to the market in 2015, and predictions are that this increase will continue through 2016. Overall, the prospects for the year ahead are positive and while some sources say that growth in the Prime market in general may be limited, Canary Wharf seems set to continue to go against this. New developments on the Isle of Dogs offer buyers everything from million-pound plus prime apartments through to more affordable property that represents a strong investment for the future. 
 
Developers have realised that prime property buyers expect much more for their money now, and as such are thinking more carefully not just about where they develop, but how. The result is a revived East End with an eye firmly on the future.
 
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.