While not so long ago Stratford was considered the furthest place east that buyers would go in search of the perfect London property, an increasing number of home buyers and investors are widening their search beyond the North Circular to find more space at more affordable prices.
The regeneration of Stratford before and after the 2012 Olympics has transformed the area, which is now a popular investor hotspot – with rental yields some of the highest in London.
However, it is places like Barking and Ilford that are set to become the next buying hotspots in east London, as future development schemes and the Elizabeth line have piqued interest from investors, first-time buyers and those with growing families.
Today we’re revealing why you should buy a property in east London and invest in the growing property markets to the east of Stratford.
Also, investors can read about buy to let hotspots here.
Property prices
Set for completion in 2019, Crossrail, now known as the Elizabeth line, is positively impacting property prices in the areas beyond Stratford, which has now become a major transport hub and retail destination in east London.
Barking town centre
In areas just east of Stratford, such as Maryland, Forest Gate and Manor Park, house prices rose immediately following the 2012 Olympics and even more after the announcement of the Elizabeth line. But property price growth in these areas has decelerated in the past two years.
However, in the boroughs of Redbridge and Barking and Dagenham, percentage price growth according to the HPI Index has increased more than 10 times that in Newham over the last 12 months.
And average property prices in places like Barking and Ilford are lower than those in Stratford and the surrounding areas. You can buy a family house within easy walking distance of Barking Station for £350,000, whereas in Stratford prices rise to around £500,000 for a similar property close to transport links.
Regeneration
Barking, like many areas in east London, was once dominated by factories and manufacturing because of its close proximity to the River Thames. But now these industrial areas have become redundant and are being repurposed for new homes and amenities, like those in upcoming Barking Riverside.
Barking Riverside is an ambitious project that will combine over 10,000 new homes, schools and leisure facilities, as well as a new riverboat service and train station opening in 2021. It is currently the largest housing development in east London.
In Ilford, the Ilford Manifesto sets out ways that the area will improve in the upcoming years, including the new Elizabeth line connection and renovation of the station, over 2,000 new homes and redevelopment of the town centre thanks to funding from Transport for London.
With increasing interest from developers and improving transport links, these are positive signs for those who choose to invest wisely and imminently, who will see the benefits of the area’s improving amenities and subsequent house price growth in the years to come.
Just like in the areas immediately surrounding Stratford, the effect of upgrading facilities will soon be felt.
Transport links
The distance between Barking and Ilford and central London is often a sticking point with buyers, who think they will be commuting long distances into central London with long commute times.
However, this just isn’t the case.
Currently being redeveloped in line with the wider regeneration of the area, Ilford Station offers routes into London Liverpool Street in around 17 minutes. But after the Elizabeth line services are up and running, direct services through central London will also get passengers to Canary Wharf in 17 minutes, Paddington in 27 minutes and Heathrow Airport in less than an hour.
The introduction of the Elizabeth line is likely to encourage buyers to look for properties in Ilford, as these commute times are quicker than from some areas much closer to central London.
In Barking, the transport links are more extensive, with the London Underground operating the District and Hammersmith & City lines, Overground services to north London and National Rail links to the City and out to the east coast.
This is coupled with an extension of the Overground to Barking Riverside in 2021, which will open up the area even more to buyers looking for easy commuter links.
So, with large-scale regeneration projects, new housing and a makeover of the commercial and leisure facilities in Barking and Ilford, you should consider buying a property in east London now if you’re looking to benefit financially in the future.
If you're thinking of selling or letting...
Foxtons has recently expanded to these areas. So if you're thinking of buying, selling, letting or renting a property in Barking or Ilford, or if you have any questions about the areas, you can find all of our contact details for Barking and Ilford here.
