Spotlight on Southwark
In Southwark, London's tallest building, The Shard, proudly rises up from over one of the oldest parts of the city. This is a place of contrasts and one that's changing fast. With 40% of its land currently being regenerated and with developments valued at £4bn[1], this relatively under-valued borough could be a great place to invest.
The continuing evolution of London Bridge, Borough and Bankside
Along the historic stretch of the Thames that contains Shakespeare's original Globe Theatre and the 1,000-year old Borough market, there's been building boom over the last 15 years. The renaissance of the London Bridge area began when the Jubilee line arrived in 1999 it but gained pace when The Shard was completed in 2012.[2] Since then it has become one of the fastest growing business districts in the capital.
One of the area's most economically significant developments is the £6.5bn transformation of LondonBridge station. When it opens in 2018 there will be access to all platforms from one giant concourse and two-thirds more space for passengers. There will also be more trains to more destinations including a connection to newly-opened Crossrail services at Farringdon, providing links across London and beyond to Heathrow.
Other major developments in this region include a dozen building projects under way or in the pipeline to build up to 1,600 new homes along Blackfriars Road. When complete, the wide, boulevard-like road will form part of the new 5km cycle superhighway that will link Elephant and Castle to King’s Cross, making this superbly central address even better connected.
Elephant & Castle – an exciting new neighbourhood
Thanks to £3bn of investment, Elephant and Castle is changing beyond recognition. There are up to 3,000 new homes are on the way – nearly a quarter of which will be shared-ownership reserved for first-time buyers. Just 4 minutes from Waterloo minutes and 6 minutes from Bank[3], this great-value area is one to watch.
At ElephantPark, the much-aligned post-war homes of the former Heygate Estate are being replaced with new apartments built around courtyards and a brand new park. By 2021, the old shopping centre will be redeveloped to contain over 300,000sq ft of shops and restaurants.[4] The high street is being redeveloped too, and the Tube station will have a new entrance and ticket hall. Plus, there are plans for a 500-capacity music venue and a massive 1,000-seater cinema.
Waterfront town centre at Canada Water set to attract thousands
Another of the borough's major growth areas is Canada Water. Southwark council’s masterplan for this 46-acre area comprises of more than a dozen different property developments. The £2bn project will include the construction of 3,500 homes, a new high street, a brand new town centre, a new leisure centre and a perhaps even a new university campus. It is expected to take 15 years to complete.[5]
The employment hubs and leisure destinations of London Bridge and Canary Wharf are just a short hop in either direction on the Jubilee line – making Canada Water attractive to young professionals. Much cheaper than neighbouring areas, it's ripe for development. With plans for an elegant new pedestrian and cycle drawbridge to Canary Wharf getting the Mayor's backing, this area could become the next hotspot for bike-riding and walking-to-work commuters.
Planned tube extension sparks rise in property values along Old Kent Road
The latest regeneration zone in the borough is Old Kent Road. Following Transport for London's decision to extend the Bakerloo line from Elephant & Castle to Lewisham and create 2 new stations on Old Kent Road, Southwark council has unveiled an ambitious regeneration masterplan for the neighbourhoods either side of the famous thoroughfare.[6]
Proposals are being put forward for up to 20,000 new homes, 5,000 additional jobs, new schools and new parks – along with a new Overground station called New Bermondsey.[7] Although the Bakerloo line extension is still 10 years off, it's already started to bring buyers into the area. The extension will provide a fast and direct link to the West End, as well as a significant increase to the area's historically low property values.
Current asking prices and rental yields
As of January 2017, the average value of properties in the London borough of Southwark is £619,805. It has increased 4.83% in the last 12 months and 53.43% in the last five years. For a two-bedroom apartment, the average asking price is £930,410 and the average asking rent is £2,164pcm, which means the gross rental yield is currently 2.80%.[8]
This content is correct as of January 2017
