By Bea Patel, TLE Property Editor and Director of Shop for an Agent
With London prices rising, Ilford seems a key location for future growth. It’s one of the areas included in London Mayor Boris Johnson’s recently released ‘City in the East’ masterplan, which examines factors such as the impact of Crossrail and HS1. Ilford looks set to experience an intense period of change with investors keen to be part of the story.
Data from The Land Registry analysed by Urban.co.uk reveal properties in London are increasing in value by almost £5 per hour. The attraction of making £4.99 every waking hour and around £40 while sleeping proves an impressive income stream for investors.
But is the pace of the market sustainable?
Jonathan Stephens, managing director of Surrenden Invest, a London-based property consultancy specialising in high yielding buy-to-let investments, believes so. He explains: “London is such a demand-driven market that it operates almost entirely independently of anywhere else in the UK. There’s a lack of physical space for new build properties and those that are being built cannot keep up with the rate at which they are being demanded. Nor is the issue likely to go away any time soon. In fact, with the huge growth in the UK’s population, the situation is set to be exacerbated further still.”
Jonathan’s comment refers to projection from the Office for National Statistics (ONS) that reveal the UK population will surpass 70 million in the next 12 years – an increase of 4.4 million people by 2027, when the housing market is already creaking at the seams. London is likely to absorb a large proportion of the increase.
The average property price in the capital is more than double the average of the rest of the country. Savvy investors are using this price point as a guide when it comes to purchasing properties with good prospects for capital growth.London property prices rise almost £5 an hour as Ilford emerges as new city hotspot.
The other concern for buy-to-let investors is yields. Across the UK, yields have risen by 2.7 per cent over the past year, according to the ONS. The improved potential for returns is encouraging more people to turn to developments such as Horizon London in Ilford to achieve a healthy income.
According to Jonathan, Ilford is currently one of London’s most interesting hotspots. One and two bedroom apartments range from £225,727 to £498,925 and are lower than the London average, and with expectations of increases in property price over the next few years, investors are snapping up this opportunity.
Jonathan says: “Ilford offers excellent value for property investors; with average prices there some 34.1% lower than the London average. With the advent of Crossrail, we’re expecting a big increase in property prices in coming years and Ilford’s population growth is further enhancing the situation. The population is expected to grow by 22.5% by 2028 and house prices are forecast to increase by 40.7% by 2020, according to JLL. This makes for an extremely interesting time to be a part of Ilford’s property market and savvy investors are snapping property up apace.”
Image credit: Surrenden Invest