London, 12th February 2018 - JLL’s latest residential research report reveals the extent of regeneration in south east London and forecasts that the area will prosper over the next 5-10 years with 12% price growth predicted from 2018-2022.
A number of regeneration projects, including the redevelopment of ex-council estates, are transforming the area, and are not only playing a key role in the delivery of much needed housing but proving vital in the uprating of many parts of South East London.
Almost 5,000 new private residential units are under construction, providing a more diverse choice for residents. There are also over 29,000 private units in the planning pipeline or unbuilt in existing developments, making it one of London’s most active residential development regions. The most significant schemes include the redevelopment of ex-council estates such as the Ferrier Estate in Blackheath which is being redeveloped as Kidbrooke Village. Other large-scale and non-council estate redevelopment has also taken place on the Greenwich Peninsula, at Bermondsey Spa and at Canada Water, to name a few.
Graham Lawes, Director of residential agency at JLL, comments:
“South East London has so much to offer residents and there is a wonderful mix of old and new. Greenwich and Blackheath are extremely well established markets with many families living in these areas and surrounding postcodes for generations, while emerging locations such Lewisham, Canada Water, Surrey Quays and North Greenwich offer newer communities. One of the keys to the success of South East London is the numerous open spaces, and many of the developers are listening to the needs of residents by also including leafy communal parks and leisure facilities within their schemes. The homely nature of the area has also helped to attract an eclectic mix of people from all walks of life where, residents get to know and look out for their neighbours – a real selling point in today’s world.”
South East London - sub-markets overview
Greenwich and Deptford have become even more popular residential locations over the past five years and more than 3,800 new residential units have been completed during this time. The largest schemes in recent years have been Barratt London’s Greenland Place and Berkeley Homes’ element of Marine Wharf. There are several schemes under construction, amounting to almost 1,350 homes. The rental market in Greenwich and Deptford is also very active - close proximity to Central London and to Canary Wharf in particular makes this a popular rental choice. The market is dominated by individual private landlords but two new BTR schemes are set to come to market during the second half of 2018; Essential Living’s Creekside Wharf and L&Q’s Faircharm Trading Estate development. Rents across Greenwich and Deptford are typically £1,400 to £1,600 pcm for a one bedroom flat.
Blackheath has an established, mature and traditional housing market with very few new developments in its core area. On the outskirts, however, Berkeley Homes is transforming the old Ferrier Estate into Kidbrooke Village, a 4,000 home, £1bn regeneration project. The heart and mainstay of Blackheath is adorned with Edwardian and Victorian terraced, semi-detached and a liberal sprinkling of detached houses that combine to make it a leafy London enclave. Detached houses are typically between £1m and £3m with two-bedroom terraced houses usually in the £700,000 to £900,000 range. The Blackheath lettings market is also dominated by older style properties. Three-bedroom terraced houses can command upwards of £2,500 pcm while detached homes are typically in excess of £3,000 pcm.
Lewisham has benefitted from being a well-connected and affordable South East London destination in recent years. It is also fortunate to possess several attractive development sites. Notable recent schemes include Barratt London’s 602 private unit Renaissance SE13 and L&Q’s Thurston Point which included 238 Build to Rent (BTR) units. Indeed, Lewisham is one of the forerunners in the BTR revolution. Significantly, there are more than 1,350 private units across five schemes in the planning pipeline. Lewisham’s connectivity to Central London and to Canary Wharf via the DLR are particularly appealing to residents and the offering could improve further when the Bakerloo Line Extension begins running, although this will not be before 2028. Typical sales pricing in Lewisham is more affordable than many neighbouring locations, averaging around £625 psf for new build property while rents for a new one-bedroom flat average £1,300 pcm.
Large scale regeneration projects dominate the development landscape in Canada Water and Surrey Quays but there are a number of other developments underway in the area. Once completed, the development will provide an important, new, rejuvenated and regenerated residential and social destination. Sales prices are up to £850 psf while rents for a one bedroom flat can range from £1,400 pcm to £1,750 pcm. Looking forward, British Land will be the principal deliverer of residential units. It bought the main Canada Water and Leisure Centre sites in 2016. Opinion is being sought for circa 3,500 units (all tenures) on the main site while there is an existing planning permission in place for 509 units at the Leisure Centre.
As well as the key hotspots of new development in South East London mentioned above, the other main locale for new development is in North Greenwich where Knight Dragon, Countryside and Taylor Wimpey are active in the significant regeneration of the Peninsula area. Bermondsey is another area which has improved in the past five years. Significant development at Bermondsey Spa has created a far more appealing environment and although development activity has slowed more recently, Grosvenor is now looking to develop circa 1,100 BTR units at the Biscuit Factory.
To download the full report, please click here.