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CBRE Hot 100 2015 winners of London’s residential market
2–3
Contents Best performing locations 4 –5
Most wanted amenities 6–7
Most affordable boroughs 10 –11
Rental boroughs 12 –13
Commuter towns 16 –17
Interior architect designers 18 –19
Office to residential conversions 22 –23
Boutique schemes 24 –25
Largest schemes with planning consent 28 –29
Future home technologies 30 –31
And finally… 32 –33
Following another exciting year for the London housing market, with average house price growth of 7% and new build construction rates at their strongest since the financial crisis, it is now time for us to reveal CBRE’s picks for what’s hot right now in the 2015 London housing market.
4–5
London’s house price growth of 7% over the last year masks a wide range across the capital. In contrast to recent years, the outer boroughs have been outperforming central London. In line with this, the highest sales rates were also in the outer boroughs, the exception being the top spot which went to City of London.
Price growth %
1 Newham 16
2 Hillingdon 13
3 Havering 12
4 Harrow 12
5 Enfield 12
6 Barking and Dagenham 12
7 Bexley 11
8 Redbridge 11
9 Croydon 11
10 Greenwich 10
Sales rate %
1 City of London 7.52
2 Tower Hamlets 5.94
3 Greenwich 5.80
4 Lambeth 5.02
5 Lewisham 4.93
6 Wandsworth 4.81
7 Bromley 4.78
8 Southwark 4.75
9 Bexley 4.57
10 Sutton 4.56
top 10 Best performing locations
Newham
16%
Top performing location for price growth
6–7
With developers implementing an increasing array of amenities into their new developments, a recent CBRE survey of residential occupiers examined which of these were truly desired by the end user. Those amenities most wanted and used by residents were a concierge, gym and onsite retail.
Have and use regularly %
1 Concierge 89
2 On site retail 65
3 Car parking 51
4 Gym 46
5 Bike racks 38
6 The public realm/landscape 37
7 Dry cleaning collection 32
8 Storage units 31
9 Visitor car spaces 29
10 Swimming pool 28
Don’t have but would like %
1 Gym 76
2 Swimming pool 69
3 Visitor car spaces 64
4 Concierge 58
5 Storage units 57
6 Car parking 56
7 Roof terrace 53
8 Spa 46
9 Cinema room 41
10 On site retail 41
top 10 Most wanted amenities
Concierge
Have and use regularly
89%
Don’t have but would like
58%
Gym
Have and use regularly
46%
Don’t have but would like
76%
Swimming pool
Have and use regularly
28%
Don’t have but would like
69%
Most sought after amenities
8–9
10–11
Despite ongoing financial constraints, the number of first time buyers in London has increased by 64% since the trough in 2008. Here, we highlight the top ten most affordable boroughs to buy in, a factor that makes them highly attractive to first-time buyers looking to take their first steps onto the property ladder. As might be expected, outer boroughs are more affordable than inner boroughs, with the top three being in south east London.
2 Bromley7.9%
3 Greenwich8.7%
1 Bexley7.7%
9 Croydon9.7%
5 Sutton8.9%
7 Kingston upon Thames9.3%
6 Redbridge9.0%
10 Barking & Dagenham9.7%
4 Havering8.7%
20 (%)
15
10
5
House price to earnings ratio
Tow
er H
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ts
Bar
net
Gre
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New
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Bar
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& D
agen
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Wan
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orth
Ham
. & F
ulha
m
Hac
kney
Lew
isha
m
Sou
thw
ark
Eal
ing
Lam
beth
Bre
nt
Cro
ydon
Cam
den
City
of W
estm
inst
er
Hou
nslo
w
Har
inge
y
Ken
s. &
Che
lsea
Har
row
Islin
gton
Hill
ingd
on
Sut
ton
Hav
erin
g
Wal
tham
For
est
Red
brid
ge
Bro
mle
y
Enf
ield
Ric
hm. u
pon
Tham
es
Kin
gs. u
pon
Tham
es
Mer
ton
Bex
ley
8 Hillingdon9.6%
top 10 Most affordable boroughs
House price to earnings ratio %
1 Bexley 7.7
2 Bromley 7.9
3 Greenwich 8.7
4 Havering 8.7
5 Sutton 8.9
6 Redbridge 9.0
7 Kingston upon Thames 9.3
8 Hillingdon 9.6
9 Croydon 9.7
10 Barking and Dagenham 9.7
12–13
London has the highest average rents of any global city at £2,083 pcm, having grown by 4% last year, but there are wide variations across boroughs. The strength of the market reflects a huge surge in the number of renters in the capital over the past decade. This increase in renters has driven the emergence of a new breed of rental property: build to rent schemes. There are now 328 such schemes under construction in London.
top 10 Rental boroughs
Highest rents £pcm
1 Kensington and Chelsea 3,405
2 Westminster 3,062
3 City of London 2,945
4 Camden 2,615
5 Islington 2,282
6 Hammersmith and Fulham 2,168
7 Tower Hamlets 2,163
8 Lambeth 2,093
9 Hackney 2,088
10 Wandsworth 1,889
Lowest rents £pcm
1 Bexley 1,007
2 Havering 1,083
3 Barking and Dagenham 1,162
4 Sutton 1,166
5 Bromley 1,271
6 Enfield 1,285
7 Redbridge 1,293
8 Croydon 1,309
9 Waltham Forest 1,309
10 Hillingdon 1,311
Rental growth %
1 Bexley 10
2 Islington 10
3 Camden 9
4 Havering 9
5 Hounslow 9
6 Waltham Forest 8
7 Lambeth 8
8 Harrow 7
9 Hillingdon 7
10 Barking and Dagenham 7
PRS schemes with planning permission, not yet under construction
Units
1 Southwark 1184
2 Croydon 1154
3 Tower Hamlets 1116
4 Newham 539
5 Lewisham 416
6 Harrow 392
7 Hackney 383
8 Hillingdon 358
9 Enfield 347
10 Brent 342
14–15
16–17
With prices in the capital forever soaring, commuter towns remain popular with families looking for space, proximity to London and value for money. When taking into account travel costs and average yearly mortgage repayments, the most expensive commuter town is Beaconsfield.
LONDON
Gerrards Cross£3,296 22 mins£836,246£38,984
Esher£2,688 23 mins£842,428£38,640
Berkhamsted£5,220 31 mins£562,326£29,220
Tring£4,872 36 mins£527,003£27,360
Weybridge£3,592 36 mins£621,886£30,124
Harpenden£4,392 23 mins£734,722£35,748
Sevenoaks£3,944 33 mins£623,618£30,560
Radlett£3,148 35 mins£679,073£32,128
Chatham£3,876 38 mins£181,643£11,628
Gillingham£3,876 44 mins£232,957£13,812
Ashford£2,792 36 mins£212,651£11,864
Dartford£2,336 42 mins£230,665£12,176
Grays£3,352 38 mins£190,065£11,464
Crawley£3,476 49 mins£245,952£13,976
1
1
Gravesend£3,908 23 mins£201,364£12,500
Swanscombe£2,912 50 mins£254,146£13,760
68
3 9
4
5
Amersham£3,336 37 mins£569,798£27,648
9 5
6
7
8
104
Basildon£3,840 33 mins£203,757£12,540
7
10
Average annual travel cost
Average journey time
Average house price
Combined annual cost of mortgage + travel
Most expensive
1 Beaconsfield
2 Gerrards Cross
3 Esher
4 Harpenden
5 Radlett
6 Sevenoaks
7 Weybridge
8 Berkhamsted
9 Amersham
10 Tring
Most affordable
1 Tilbury
2 Grays
3 Chatham
4 Ashford
5 Dartford
6 Gravesend
7 Basildon
8 Swanscombe
9 Gillingham
10 Crawley
* Towns with more than 10% commuter population
2
2
3
top 10 Commuter towns
Train times taken from National Rail and based on the fastest train
Tilbury£3,352 45 mins£183,658£11,188
Beaconsfield£3,788 26 mins£1,071,534£49,508
18–19
top 10 Interior architect designersDesign is a crucial factor when buying a new home as it needs to reflect the personality and lifestyle of the buyer. Here are ten of the most exciting residential designers in London right now, and some of the work they’ve been doing on our biggest schemes.
1 Sophie Ashby Studio Ashby
2 Dara Huang Design Haus Liberty
3 Helen Beresford Sheppard Robson
4 Fiona Naylor Johnson Naylor
5 Tom Dixon Tom Dixon Design Research Studio
6 Martin Brudnizki MB Design Studio
7 Caroline Smith Wish London
8 Louise Wicksteed 1508
9 Louisa Penn Louisa Penn Interiors
10 David Gamble and Huw Hughes Edward Philips
5 Tom Dixon – Greenwich Peninsula
2 Dara Huang – South Bank Tower
10 David Gamble and Huw Hughes – Bedford Street
1 Sophie Ashby – South Bank Tower
20–21
22–23
Permitted development rights were first introduced in May 2013, opening up a whole new set of opportunities for London developers. As a result, there are now 6,333 units in office to residential conversion schemes currently under construction in London. Here we list the ten largest. However, PDR (Permitted Development Rights) schemes are not the only ones making use of redundant office space – iconic schemes such Centre Point and Southbank Tower are also conversions.
Scheme Location Units
1 Delta Point Croydon 404
2 Impact House Croydon 263
3 Queens House and Kings House Harrow 262
4 Alfa Laval – New Build (WestSide) + Tower Hounslow 206
5 St Anne House Croydon 197
6 Union Park Hillingdon 190
7 Central House / The Balfour Building Hounslow 171
8 The Printworks Lambeth 155
9 Northway House Barnet 149
10 Hill House Islington 148
top 10 Office to residential conversions
Centre Point, WC2
Largest office to residential conversion
Delta point Croydon
404units
24–25
The Fitzbourne
top 10 Boutique schemes
Completed
The Beecham
The Charles
The Corner House
15 Hollen Street
Hop House
The Maddox Collection
The Palladio
10 Soho Square
11 Soho Street
The Tavistock
Under construction
Artisan
Bedford House
The Colyer
The Fitzbourne
3–4 Great Marlborough Street
Ingram House
102 Jermyn Street
The Pathé Building
Soho 13
68–70 Wardour Street
11 Soho Street The Pathé Building
The Colyer*
102 Jermyn Street
15 Hollen Street
The Corner House
Hop House * Computer generated images are indicative only
Niche and boutique schemes remain as popular as ever with buyers seeking that ‘hidden London gem’. With buyers becoming ever more discerning, the schemes listed on this page demonstrate the beauty and detail that smaller schemes have to offer – often attracting similar values to those achieved by larger developments.
26–27
28–29
Scheme Location Developer Private units
1 Greenwich Peninsula Greenwich Knight Dragon 11,000
2 Barking Riverside Barking and Dagenham Bellway Homes Essex 10,800
3 Brent Cross Cricklewood Barnet Argent Related 7,550
4 Stratford City Newham London Legacy DC / Olympic Park Legacy Company 6,454
5 Earls Court Hammersmith Hammersmith and Fulham Capital and Counties 5,845
6 Woodberry Park Hackney Berkeley Homes NE London 5,517
7 Canary Wharf Estate Tower Hamlets Canary Wharf Group 3,610
8 Convoys Wharf Lewisham Hutchison Property Group (UK) Ltd 3,500
9 Southall Gas Works Ealing St James 3,475
10 Battersea Power Station Wandsworth Battersea Power Station Development Company 3,444
top 10 Largest schemes with planning consentLarge regeneration schemes like Earl’s Court and Greenwich Peninsula have thousands of units in their masterplans and, with some phases already underway, have contributed to the 19,000 units under construction in London. Here are the largest developments by private units currently under construction.
7 Canary Wharf Estate 1 Greenwich Peninsula
30–31
top 10 Future home technologiesAs technology continues to impact upon our daily lives, companies are increasingly turning their attention to technology in the home. Here are ten of the best; we expect to see many of these in our new schemes in the near future.
1 Samsung’s SmartThings home automation kit
2 Homey – voice-activated home automation system
3 Withings Smart Home Monitor
4 Cujo antivirus software
5 Serif television
6 Awair air monitoring device
7 Dolfi ultrasonic washing aid
8 Butterfly home monitoring system
9 Sengled Plus lightbulb speaker
10 August by Fuseproject home entry
Homey – voice-activated home automation system: Manages appliances, home entertainment, lighting, online data and social media.
Samsung’s SmartThings home automation kit: Dims the lights and adjusts thermostats independently.
Awair air monitoring device: Monitors the air for CO2, dust, toxic chemicals, temperature and humidity.
Butterfly home monitoring system: Home monitoring system.
August by Fuseproject home entry: A reliable lock you can give away via phone invitation.
Withings Smart Home Monitor: Baby monitor, lullaby singer, security camera, webcam and video camera in one.
Cujo:
Defends your entire network from hackers, viruses and malware.
Serif: A television that looks like a piece of furniture.
Sengled Plus lightbulb speaker: A speaker and lightbulb that plugs into any light socket.
2
8
9
10
6
1
3
4
5
Dolfi ultrasonic washing aid: Ultrasonic washing device to clean deep without excessive agitation.
7
32–33
Ten developers to watch in 2016
And finally…
Almacantar
Canary Wharf Group
Capco
Dukelease
First Base
Greenland
Grosvenor
Knight Dragon
Lodha
St James
Greenwich Peninsula, Knight Dragon
With a diverse range of developers bursting onto the scene, here are our pick for the top ten to watch.
34–35
cbreresidential.com/research
Jennet SiebritsHead of Residential Research Senior Director
T: +44 (0)20 7182 2066 E: [email protected]
Phillippa DrysdaleResidential Research Analyst
T: +44 (0)20 7182 2186 E: [email protected]
Mark CollinsLondon Residential Chairman
T: +44 (0)20 7182 2264 E: [email protected]
Lisa HollandsLondon Residential Managing Director
T: +44 (0)20 7420 2004 E: [email protected]
Land Registry, Molior, EGi, National Statistics, Rightmove, Nationwide.Sources
Photography P14-15: istock.com / Piero Cruciatti
Disclaimer 2015 CBRE
CBRE Limited confirms that information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt their accuracy, we have not verified them and make no guarantee, warranty or representation about them. It is your responsibility to confirm independently their accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.
© 2015 CBRE Ltd.
Caveat The following lists are the subjective view of CBRE’s team, and do not represent a statistical or comprehensive view of the market: future home technologies, designers, boutique schemes, developers to watch.
