Making Places for People: London’s Regeneration Zones
For savvy buyers, there is much to be said for choosing a home in an area undergoing regeneration, with all the potential it offers for improved infrastructure and facilities in the local community and of course, the potential for long-term financial gain.
By seeking out areas that are the subject of major investment, where local authorities are working in partnership with developers to deliver improvements for the whole community, those looking to purchase a new home can reap rewards, both in the medium and long-term. Large-scale regeneration always factors in infrastructure, public transport and public realm improvements, and brings with it new community facilities, retail outlets, businesses and employment opportunities, enriching the local area and making it an attractive place to live and work. If you can get in early and buy a property off-plan, there is more value uplift to be gained.
Locations with inward investment and slow burn regeneration that burgeoning clusters of independent shops and cafes can create, also have a habit of outperforming underlying market trends. CBRE studied the effect of regeneration on local property markets in London and found that house prices within a 750-metre radius of a regeneration zone grow faster than the wider market, by up to 3.6% per annum on average. Not only this, regeneration zones are well placed to bounce back following times of macro-economic uncertainty, when the housing market returns to recovery mode.
One such London neighbourhood worth watching in 2023 is the large-scale transformation of South Kilburn, a Zone 2 area in the London borough of Brent, into a sustainable and vibrant residential neighbourhood. The South Kilburn Programme is currently halfway through this transformative 15 year regeneration effort which, upon completion, will see a total of 2,400 new homes and a series of new and improved community spaces, schools, health facilities and transport links.
As a result of this, recent reports from CBRE highlight that the borough has a five year price growth forecast of 22%, higher than London’s average which sits at 19%. With the average price currently sitting 4% below the London average, buying now could earn future owners in the area, a hefty appreciation.
A key development in The South Kilburn Project is Countryside Partnership’s North West Quarter, which, upon completion, will deliver a total of 328* apartments and family homes across the affordable, social rent and private tenures, creating high-quality sustainable places to live, characterised by a tenure-blind approach to design. North West Quarter will also comprise of a new medical centre, pharmacy, gym, café, supermarket and a public plaza at the heart of the development and South Kilburn community. The first of this latest collection of homes are anticipated to complete in Summer 2023.