Property group Savills is predicting that house prices will continue to rise in London, gaining an average of 15.3% by 2020. Boroughs across the capital are expected to see rises, but some areas will perform better than others. Investors looking to target areas with the best growth potential will need to look carefully to ensure they invest in the right location.
According to the data released by Savills, popular areas like Islington, Camden and Hammersmith and Fulham will be amongst the Boroughs that see the smallest price growths. They expect each area to rise in value by 10% by 2020. This is still quite an impressive result considering these areas have some of the highest house prices in London, but it is below the average for the city.
The areas where the highest growth is predicted are Waltham Forest and Lewisham. Homes in these locations are forecast to see prices increase by an incredible 20% in the next five years. They are both located on the boundary of zone 3, locations that buyers are increasingly looking to target because they offer more affordable properties than zone 1 and 2.
Investors will be keenly searching for new hotspots to target where they can expect their money to provide a high return. A good thing to look out for is areas with affordable house prices that have received or are currently receiving regeneration. These could see their fortunes change very quickly, particularly if they meet the needs of buyers. Boroughs with a lot of space on offer are especially popular.
Outer London Boroughs are expected to make ground on inner ones by 2020 because they have more growth potential. Over the last ten years zone 1 and 2 have seen property prices rise at an amazing rate, setting records in the process. In fact in the last twelve months alone one in every twelve transactions involved a property valued at over £1 million. The search for more affordable homes is definitely on and this will see new hotspots created in areas where there is a lot of potential for price rises. If you are interested in investment properties in Lewisham or any other part of the capital with growth potential, we can help you with our investor services and management packages.