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Borough by borough 2016: Lambeth
Home to the National Theatre and the London Eye, Lambeth includes the popular residential neighbourhoods of Clapham, Brixton and Streatham. Part of the borough is benefitting from the Vauxhall, Nine Elms and Battersea (VNEB) regeneration with tower clusters developing on the river frontage.
Lambeth encompasses a large swathe of the Southbank that, despite its proximity to both the City and the West End, has been historically overlooked by developers. However, this is all changing, partly as the area encompasses the northern part of London’s largest regeneration zone: VNEB. Covering 195 hectares from Battersea Power Station in the north up to Lambeth Bridge, it will provide 18,000 new homes, 22,000 jobs and numerous public realm improvements. Also planned is actress Joanna Lumley’s brainchild: a garden bridge across the Thames. It will be over 350 metres long and will feature trees, shrubs and wildflowers.
Our previous analysis shows that regeneration can boost local property prices by around 4.9% per annum – over and above wider capital growth; we expect VNEB will have a similar impact on the local market. However, prices have seen an even more significant uplift as a once undervalued area is increasingly becoming a prime property spot; pre 2008 new build values along the river were in the region of £500 psf. now values are nearer £1,500 psf. and trading at a 25% premium to their second-hand counter parts. The high demand for these properties is reflected in the 71% off plan sales rate.
We are also seeing several tower clusters developing along Lambeth’s river edge. At the south end of the river, adding to the recently constructed St George’s The Tower, under construction are the 36 storey Vauxhall Sky Gardens and Nine Elms Point (39 storeys). Further towers in the pipeline include the 50 storey Vauxhall Square tower and Vauxhall Cross. To the north, a further cluster is planned that includes the 37 storey Southbank Place; all in the entire Lambeth skyline will be changing immeasurably.
Average house prices in Lambeth are currently around £530,000 which is the fifth lowest in Inner London. But values range significantly across the borough, with the highest value properties on the Southbank with river views, especially stretching out over the Houses of Parliament. Prices increased 20% last year, the fourth highest growth across the Inner London boroughs. This growth can be attributed to the impact of the regeneration and is a trend we expect to continue.
Lambeth currently has the third highest employment rate in London. It has the second highest population, which is expected to rise by 8.1% to 344,487 over the next decade. This is an extra 25,864 people; with just 5,380 units in the planning pipeline, future supply will fall woefully short of fulfilling future demand.