If you are a landlord in London, you will know just how hard it is to find an affordable property investment in the city. Despite an annual price fall of 1.9%, the average property value in London was still £463,283 in March this year. This is substantially higher than the UK average of £226,798.
For many landlords, it may seem like the dream of acquiring a property portfolio in the London area is unattainable. But this may not be the case.
As London grows, regeneration across the city is at an all-time high. Many areas of outer London are getting a major facelift - and looking ahead, these may be the places to invest.
So, why are London regeneration areas a great opportunity for investment? What areas should you be on the lookout for, to get the most bang for your buck?
According to the Guardian, urban regeneration is an attempt to boost the physical structure and economy of certain areas that have been blighted by unemployment and poor housing.
In regeneration programs, public money is used to encourage private investment into an area. More recent projects have focused on stimulating social and economic regeneration.
In short, the aim of regeneration is to make rundown areas attractive again so that people want to live, work or play there. If everything goes to plan, these underutilized areas find a new purpose (which is great news if you bought a property there whilst the housing prices were still low).
A good example is the city of Manchester: regeneration has successfully revitalized the city's old industrial buildings of the 1980s. Now, it is a hip, cool place to live. In 1987, Manchester had a population of 300. Now, it has a population of over 530,000.
Obviously, attempts at urban regeneration can be complex and take time. You need to do your research and be patient. Like most, if not all property investments, there will always be an element of risk. However, there is research to suggest that rental growth in regeneration locations is similar compared to the prime market. With that in mind...
Wood Wharf on the Isle of Dogs is one of the largest private regeneration projects in London and is tipped to be soon occupied with office and retail space, as well as luxury homes.
On the outskirts of Bow and Hackney, Hackney Wick is on the radar of investors and developers: ever since the construction of the Queen Elizabeth Olympic Park, old industrial buildings are being transformed into flashy apartments.
South of the River Thames, Greenwich Peninsula is being described as 'New London: An Emerging Modern Community'. Twice the size of Soho and only 2 minutes to Canary Wharf, £8.4 billion is being invested in this fresh new district.
Finally, Canada Water has big aspirations to be a new urban centre for London in SE16. Located between London Bridge and Canary Wharf, this largely residential area is about to undergo a big transformation - including the addition of amenities such as bars and cafes.
We hope you found this blog interesting! However, do note that it should not be used as a substitute for competent legal and/or other advice from a licensed professional.