Should I Buy Property in East London? Think Twice!
Those of you who have come to see me speak recently will know of my warning about the existing oversupply of property, principally of what I call “me too identikit” flats in some cities in the north of England.
But beware, the same kind of thing may happen in London too.
My favourite property writer, Sharlene Goff writing in the FT on Saturday, quoted property experts Savills who caution that “building in east London in areas such as Woolwich, Stratford, Hackney, Bow and the Thames Gateway, is set to increase 86 per cent.”
Savills expects that in five years’ time the supply of new properties in east London will hit “almost three times the level of property completions seen over the last five years. This is likely to increasingly polarise price growth, with high-supply areas lagging behind those areas with greater constraints.”
Savills go on to say: “New flats in areas with as yet little sense of place but greatest competition may well show little or no price growth, which over a number of years would be a significant repricing relative to other markets, in particular, family housing.”
So, if you think buying a flat in east London makes sense, think again and look at all the other factors too. It could be that new transport infrastructure in these areas and of course, the Olympic effect will outweigh the downward effects on house prices and rent due to increased supply. But, then again maybe not.
I’m David Lawrenson from property investment consultancy Letting Focus. I’m the author of “Successful Property Letting – How to Make Money in Buy to Let” the UK’s top selling buy to let book and Amazon.co.uk’s top selling property title.I contribute to newspapers and a host of property websites, write a property investment blog and am a media commentator on the residential property market. You can read more of my property investment insights and details of my networking, advice, telephone consultancy and property investment seminar programme on my website www.lettingfocus.com.
What’s different about us is that we are unbiased, because unlike most people in the buy to let and property advice business we are not linked to a developer, agent or finance company. We just tell you all about buy to let and property investment - the good and the bad.
Copyright of this article: David Lawrenson 2007. If you wish to reproduce this piece please contact me first. Back to main site: www.lettingfocus.com
But beware, the same kind of thing may happen in London too.
My favourite property writer, Sharlene Goff writing in the FT on Saturday, quoted property experts Savills who caution that “building in east London in areas such as Woolwich, Stratford, Hackney, Bow and the Thames Gateway, is set to increase 86 per cent.”
Savills expects that in five years’ time the supply of new properties in east London will hit “almost three times the level of property completions seen over the last five years. This is likely to increasingly polarise price growth, with high-supply areas lagging behind those areas with greater constraints.”
Savills go on to say: “New flats in areas with as yet little sense of place but greatest competition may well show little or no price growth, which over a number of years would be a significant repricing relative to other markets, in particular, family housing.”
So, if you think buying a flat in east London makes sense, think again and look at all the other factors too. It could be that new transport infrastructure in these areas and of course, the Olympic effect will outweigh the downward effects on house prices and rent due to increased supply. But, then again maybe not.
I’m David Lawrenson from property investment consultancy Letting Focus. I’m the author of “Successful Property Letting – How to Make Money in Buy to Let” the UK’s top selling buy to let book and Amazon.co.uk’s top selling property title.I contribute to newspapers and a host of property websites, write a property investment blog and am a media commentator on the residential property market. You can read more of my property investment insights and details of my networking, advice, telephone consultancy and property investment seminar programme on my website www.lettingfocus.com.
What’s different about us is that we are unbiased, because unlike most people in the buy to let and property advice business we are not linked to a developer, agent or finance company. We just tell you all about buy to let and property investment - the good and the bad.
Copyright of this article: David Lawrenson 2007. If you wish to reproduce this piece please contact me first. Back to main site: www.lettingfocus.com
Labels: East London property
This entry was posted by lettingfocus, on
Tuesday, June 19, 2007.
