Property prices in London set to more than double by 2030 despite Brexit
Property buyers looking to make a sound, long term investment in property in London are likely to do better if they look to the east of the city rather than traditional areas of the capital, a new analysis report suggests.
The report from real estate firm JLL analyses the forecasted average house price gain in each London borough from 2016 to 2030 using data from Oxford Economics and it shows that even if you take a relatively conservative view, you can still double your investment in the long run.
Oxford Economics predicts that there is the potential to double the value of a home in some parts of London by 2030, most notably Waltham Forest, Newham and Haringey where prices are projected to rise by 100%, 94% and 91% respectively.
Other areas projected to do well include Lewisham with growth of 90% over this time period, Hackney up 89%, Kensington and Chelsea up 86%, Greenwich up 85% and Westminster and Brent both up 84%.
JLL residential research associate director Nick Whitten explained that the Oxford Economics’ forecasts are based on what now looks to be the likely hard Brexit scenario where the UK would leave the European Union single market altogether and revert to World Trade Organisation rules.
‘Within the confines of this scenario, Oxford Economics predicts the potential to double the value of a home in some parts of London by 2030. Particularly strong predicted areas of growth can be found to the east of the capital with Waltham Forest and Newham leading the way,’ he said.
‘The east of London is expected to be a significant driver in terms of the future economic growth of London driven by the rise of the likes of Silicon Roundabout in Old Street, the Queen Elizabeth Olympic Park and the new Crossrail east-west commuter railway,’ he pointed out.
He added that JLL figures show that house price growth in London over the past 35 years has averaged 8% per annum through a period that included three recessions. ‘While Oxford Economics’ forecasts represent a slight cooling of that price growth, they should still provide confidence that UK housing represents a sound long term investment with forecasted annual growth rates of between 4% and 7% per annum depending on the borough,’ said Whitten.
‘House purchases should invariably be viewed as a long game as opposed to the chance to make a quick buck,’ he concluded.
Tower Hamlets is predicted to see the least growth but still prices are expected to rise by 63% by 2030, while the City of London is predicted to see price growth of 70%, Hillingdon and Lambeth both 71%, Bromley, 72% and Lambeth 71%.