Bonus season: If you’re thinking of spending it on property, here are the top London hotspots you should be looking at
It’s bonus season in the City and now you’ve got the enviable task of deciding what to spend it on. Historically low interest rates means putting the whole lot into an ISA isn’t quite as appealing as it once was. But house price growth particularly in the outer boroughs – Newham, Havering, Brent and Croydon – is looking healthy. We’ve synthesised data and predictions from some of London’s biggest estate agents, so whether you’re taking your first step on the property ladder, investing in a buy-to-let, or looking to upsize or downsize, here’s where to spend it in 2017.
Read more: Here's what estate agents think will happen in 2017
First time buyers: CROYDON
Average asking price: £353,987 (Savills)
Borough price growth 2016: 17% (CBRE)
Data from Hamptons International reserach team shows that over 60 per cent of buyers in Tottenham, Canning Town and Leyton are first time buyers. Research analyst David Fell adds that east and south London accounted for 75 per cent of first time sales and this is set to continue; “next year it’s likely first time buyers will still be looking in similar sorts of places.”
- Tottenham: AAP: £388,058
- Canning Town: AAP: £354,910
- Forest Gate: AAP: £402,100
- Leyton: AAP: £413,456
Buy-to-Let investors: CROYDON
Average asking price: £353,987 (Savills)
Borough price growth 2016: 17% (CBRE)
With the highest rental growth over the last year (according to CBRE’s Borough by Borough report), Croydon isn’t just great for first timers but for BTL investors too, while Vauxhall and Tower Hamlets (the borough where Stepney Green resides) have the highest number of new units under construction.
- Vauxhall: AAP: £669,126
- Tooting: AAP: £648,299
- Stepney Green: AAP: £534,653
- Hounslow: AAP: £359,230
Upsizers: Walthamstow
Average asking price: £446,521 (Savills)
Borough price growth 2016: 25% (CBRE)
All the figures show that as Londoners get pregnant, they also get out. “While Inner London neighbourhoods tend to be the preserve of tenants and first-time buyers, almost all the second-stepper hotspots are found in the leafier parts of Outer London,” says Fell. Upsizers make up nearly half of sales in Upminster and Kingston.
- Kingston: AAP: £640,889
- Upminster: AAP: £492,827
- Palmers Green: AAP: £506,301
- Loughton: AAP: £494,771
Downsizers: Wapping
Average asking price: £446,521 (Savills)
Borough price growth 2016: 15% (CBRE)
Across the board, data for downsizers shows a spike in people moving out of the traditional commuter belt and into the heart of the city, swapping space for lock up and leave homes close to cultural attractions. Charles Lloyd, head of Savills Mayfair, adds, “It’s the hassle free factor they’re looking for, and something that has good rental potential if their circumstances change.”
- Soho: AAP: £1,548,889
- Canada: AAP: £803,760
- Marylebone: AAP: £2,427,037
- Hammersmith: AAP: £880,051