London house prices: Here’s how living near a regeneration scheme can boost the value of your property
Living close to a major regeneration scheme in the capital can boost the value of your property by an average of 4.7 per cent a year above the wider house price growth, research released today by CBRE has found.
The property services giant has conducted a study across seven regeneration schemes in London and found that the area around each one showed a substantial uplift in price growth when compared with the wider local authority.
House prices around Paddington Basin, for example – where there have been more than 13 individual schemes underway – increased by 12.9 per year compared with 9.5 per cent in its local authority of Westminster.
CBRE said this implied that the “regeneration effect” had added 3.5 per cent to average annual house price growth.
CBRE’s head of residential research, Jen Siebrits, told City PM: “We wanted to choose regeneration schemes that were effectively complete so that we could track them from their conception and see whether the impact lasted throughout the whole life of its development.”
“Some schemes had a higher uplift. For example, Stratford outperformed because it had the added benefit of the Olympic effect. All these areas were ripe for regeneration and the schemes that went into those areas did a really good job of benefitting the neighbourhood,” she added.
In North Greenwich, where Hong Kong-based developer Knight Dragon has been creating a new district, prices increased by 6.7 per cent compared with just below four per cent for the local authority while flats near the Southbank have seen prices rise, on average, by 5.7 per cent per year.
Siebrits said the growth figure was measured by tracking price growth two years before schemes began and two years after.