East London residential; our patch, our view Q1 2016
Over the last several decades East London has been completely transformed. It is now a highly desirable place to live and new infrastructure and industry continues to draw people to the area. As a result, this region of London is seeing a significant amount of development, with areas like Stratford and Greenwich Peninsula now putting East London in the global spotlight.
London’s housing market continued to record strong growth heading into 2016, despite operating against an uncertain backdrop. The EU referendum is at the forefront of buyers’ minds, especially those from overseas. The additional rate of stamp duty also came into force at the beginning of April. However, the desire to beat its introduction meant that activity was bolstered by investors in Q1. According to the Land Registry, annual house price growth across London was 13.9% in March 2016, up from 11.3% at the end of 2015.
At the CBRE East London office we saw strong demand, from both owner occupiers and investors. Our collection of new build developments continue to sell well, with schemes including Greenwich Peninsula and The Stage proving hugely popular. Overall, there were 200 sales agreed in Q1 2016, a significant increase compared with the same period of 2015. The second quarter may prove more challenging as the referendum draws nearer. The overseas market may be less active, but we expect strong demand to continue from mainstream domestic buyers, who are now further bolstered by the new London Help to Buy scheme.