ON YOUR
DOORSTEP
East North & ion dit London e
Our network of 74 international offices has 3 in North and East London alone – we are your local experts.
11%
2.9%
Average house price rise in Tower Bridge in 2013
Rise in average weekly rental values in Canary Wharf in 2013
£1m
£813
Average house price in Islington
Average weekly rental values in Islington
14%
28%
Rise in number of agreed lettings for Tower Bridge team in 2013
Rise in exchanges for our Islington team in 2013
FIGURE 1: KEY MARKET INDICATORS
INSIDE THIS ISSUE… chestertonhumberts.com
Source: Chesterton Humberts Research
MEET THE TEAMS
MARKET COMMENTS
2 3
PROPERTIES
OUR NETWORK
6 8
Your Teams & Market Comments Islington Nik Stylianou
Islington Louise Nicholson
Director Sales 020 3040 8493 nik.stylianou@chestertonhumberts.com
Director Lettings 020 3040 8451 louise.nicholson@chestertonhumberts.com
Tower Bridge Matt Johnson
Tower Bridge Emma Wilbourne
Associate Manager Sales 020 3040 8590 matt.johnson@chestertonhumberts.com
Director Lettings 020 3040 8594 emma.wilbourne@chestertonhumberts.com
Canary Wharf & Docklands Cory Askew
Canary Wharf & Docklands Kelly Rees
Area Director Sales & Lettings 020 3040 8600 cory.askew@chestertonhumberts.com
Associate Director Lettings 020 3040 8604 kelly.rees@chestertonhumberts.com
Where to find us blog
chestertonhumberts.com
plus.google.com/+chestertonhumberts
@ChestertonHumb
blog.chestertonhumberts.com
facebook.com/chesterton.humberts
pinterest.com/chestertonhumb
Cory Askew & Kelly Rees Canary Wharf & Docklands
Nik Stylianou & Louise Nicholson Islington
The Canary Wharf & Docklands property market has gone from strength to strength in 2013. The residual gloss of the 2012 Olympics and the continued expansion of the Canary Wharf business district has been the two greatest facilitators of growth for the local sales and lettings market. The second half of 2013 in particular has seen the type of strong activity levels in the local sales market that was unimagined in the darkness of 2008 and a genuine reflection of an improvement in the wider economy. The banks are once again displaying an insatiable appetite for lending and with thousands of new units coming online this year in various new developments throughout the area, there is more than enough oxygen in the market to match the incredible demand from purchasers. Rental growth has consistently increased throughout the year as demand from the corporate tenants made a dramatic comeback which shows no sign of abating as more large blue-chip companies elect to make Canary Wharf their base of operations. Underwriting both the sales and lettings sides of the market in 2013 has been the incredible demand from overseas buyers and tenants. By an overwhelming margin, we were far more likely to sell or let a property to someone from the Far East than someone from the UK. All of these variables have combined to make 2013 a fantastic year for sellers and landlords and all indicators are that this will continue for 2014.
The London Borough of Islington continues to show incredible growth, outpacing most London boroughs in the second half of 2013, as demand reached unprecedented levels. Islington has now become established as a prime London property hotspot, as the area continues to benefit from a wider migration of buyers from more traditional ‘prime’ London locations, who now view Islington as offering more value on a price per square foot basis. The Islington population is made up of young professionals, predominately from the banking, legal and professional services sector, active Buy-to-Let investors, starter families, those looking for a London pied-a-terre as well as those who find Islington a very good location for downsizing, simply due to the overwhelming convenience and amenities Islington has to offer. With its fabulous conservation areas, great architecture, lovely greens, amazing eateries, vibrant shopping all being serviced by probably the most accessible and widest network of transportation links in London and within close proximity of wherever you may reside, the demand to live in Islington, looks set to continue well into 2014. The Islington rentals market has seen another record year with the Buy-To-Let landlord returning to the industry in abundance and a healthy volume of applicants looking to settle in Islington for reasons mentioned above. The variety of accommodation ensures that we have an eclectic group of tenants whom invariably end up buying in Islington.
Matt Johnson & Emma Wilbourne Tower Bridge Confidence remains high with cash buyers continuing to drive the market forward seeking better returns on a relatively low risk investment. Equally buyers raising finance are looking to make the most of historically low fixed rate mortgage products. There is a growing gap between supply and demand as would-be sellers are holding on to their asset as confidence in the longer term market grows. The area has seen an increase in buyers looking for a pied-aterre over the last 12 months, with those commuting from outside London looking to kill two birds with one stone, by investing in property and saving on expensive overnight hotel stays. Similarly lettings have experienced a positive year. There has been continued demand for properties with many tenants renewing and some landlords looking to cash in on the high sales prices; this has reduced stock levels. Whilst we haven’t seen rents rise like since 2011, SE1 and surrounding areas still make very good rental investments with our proximity to the City and Canary Wharf attracting the young professional tenants. With More London and the Shard raising the profile of the area this trend looks set to continue in 2014.
Research ❖ Land
Registry data shows that in the year to September house prices across London increased by 9.3% to a new high of £393,462, meaning the average price of a London home is 135.5% higher than the national average.
❖ The
latest sales volumes statistics (July) show that the number of sales above £1m in London increased by 44% in comparison with July 2012.
❖ The
average monthly rent in London fell 4% in October to £1,283 according to the Homelet Rental Index, although on an annual basis rental values were up 2.6%. The average monthly rent across the UK dropped 4.6% in October to £815 per month, meaning it is 91% more expensive to rent in the capital.
❖ Mortgage
lending data from the Council of Mortgage Lenders highlights the continuous growth of first time buyers in London, as 13,100 loans were advanced in Q3 last year representing a 32% uplift on the same period in 2012.
❖ In
the third quarter of last year 10,900 loans were advanced to home movers in London which was an increase of 28% compared to Q2 2013, as well as a 6% improvement on the same period in 2012.
8%
ISLINGTON
11%
TOWER BRIDGE
7%
CANARY WHARF
DIFFERENCE IN SALES PRICES FOR NORTH & EAST LONDON OFFICES: END 2012 VS END 2013. Source: Chesterton Humberts Residential Sales Index. Zoopla.
SALES • The latest figures from our prime sales index continue to show positive house price growth in Islington, Canary Wharf and Tower Bridge. As a whole house prices across the three locations have increased by 8.6% since the end of 2012 to an average of £786,647. • Tower Bridge has witnessed the most significant uplift in prices with an 11% rise reported since the end of 2012, and the average house price in the area now stands at £702,250. Activity within the area picked up considerably in 2013 as the number of appraisals increased by 23%, the number of viewings carried out jumped 20% and instructions increased by one third. • The Islington market remains very active and house prices have moved up 8% since the last quarter of 2012, with the average house price in the area pushing through the one million pound barrier to £1,010,357. Following on from a strong year in 2012 both the number of appraisals and viewings carried out increased last year by 7% and 6% respectively, leading to a 14% upward movement in the number of exchanges agreed. • In Canary Wharf the residential sales market enjoyed another strong year with 7% uplift in prices raising the average house price to just under £650,000 (£647,333). The area remains very popular with workers in the financial services sector looking to live near to their place of work, coupled with quick and easy access to the city. • As prices moved up through 2013 the number of viewings carried out increased by a third from 2012, highlighting the strengthening demand in the market. As the financial sector is now recovering an emerging trend is seeing more buyers, both from the UK and abroad, looking for new build property in Canary Wharf and, to a lesser extent, Docklands.
LETTINGS • As is the case throughout the majority of Prime London the lettings market has undergone a trying time in comparison to the sales market. The three offices within our North and East area reported contrasting performances in the lettings market with Canary Wharf and Docklands leading the way with a 2.9% increase in the average weekly rental value in 2013, which now stands at £568p/w.
• Weekly rental values within Canary Wharf and Docklands increased through 2013 as the number of new applicants rose considerably by 28% against 2012, leading to a 17% jump in the total number of agreed lettings. • Islington remains by far and away the most expensive of the three locations to rent at £813p/w, with modest growth of just 1.5% recorded since the last quarter of 2012. As weekly rental values increased at a rate below the level of inflation in 2013 demand from tenants increased strongly, with the number of new applicants 14% higher than last year and viewings up by 22%. This increase in activity led to a 5% jump in the total of agreed lettings in comparison with 2012. • In contrast to the sales market the lettings market within Tower Bridge suffered in 2013 as a fall of 5.9% saw the average weekly rent fall to £473, the third biggest fall recorded by our index in 2013. • Weekly rental values fell through the summer months while activity within the area picked up extensively as new applications soared 43% in comparison with 2012, boosting the number of viewings carried out by 55% and the number of agreed lettings by 28%.
Rents in London are
greater than the average for the rest of the country
FOR SALE
No1 West India Quay, Canary Wharf E14 £1,499,950
FOR SALE
Aubert Road, Highbury, N5 Guide Price £1,995,000
FOR SALE
Danbury Street, Islington N1
Guide Price £2,000,000
FOR SALE
Farringdon Road, Farringdon EC1M
Guide Price £1,150,000
FOR SALE
Providence Place, Islington N1
Guide Price £1,195,000
SOLD
Ontario Tower, Canary Wharf E14 £575,000
FOR SALE
Shepperton Road, Islington N1
Guide Price £1,295,000
SOLD
Highbury Grove, Highbury N5 £2,000,000
FOR SALE
Florence Street, Islington N1
Guide Price £3,750,000
FOR SALE
Barnsbury Grove, Barnsbury N7
Guide Price £1,295,000
FOR SALE
Anchorage Point, Canary Wharf E14 £699,950
SOLD
Highbury Hill, Highbury, N5 Guide Price £675,000
TO LET
Melody Lane, Islington N5 £1,450 per week
TO LET
Albion Yard, Islington N1 £640 per week
TO LET
Glenluce Road, Canary Wharf SE3 £807 per week
TO LET
Blackheath Park, Canary Wharf SE3 £2,900 per week
TO LET
80 New Concordia Wharf, Tower Bridge SE1 £1,050 per week
LET
West India Quay, Canary Wharf E14 £795 per week
TO LET
Tradewinds, Canary Wharf E16 £365 per week
TO LET
Mill Street, Tower Bridge SE1 £550 per week
LET
Queen Elizabeth Street, Tower Bridge SE1 £1,500 per week
TO LET
Thomas More, Barbican, EC2Y £550 per week
TO LET
Granville Square, Clerkenwell WC1X £895 per week
LET
Blackthorn Avenue, Islington N7 £650 per week
Our network Hampstead Swiss Cottage
Kentish Town
Islington Camden St John’s Wood Little Venice Notting Hill Hyde Park Covent Garden Mayfair Kensington Knightsbridge Pimlico Chelsea
Chiswick Kew
York
Tower Bridge Canary Wharf
Lincoln
Fulham (3) Barnes
East Sheen
Battersea
Nottingham
Putney
Stamford
Norwich
Ludlow Hereford
Cirencester Chippenham Marlborough
London
East Grinstead Salisbury Wadhurst Sherborne Petersfield Taunton Yeovil Southampton Blandford Chichester Honiton Bridport
NORTH AMERICA
Sevenoaks Canterbury Tenterden
Truro Barbados
Moscow United Kingdom
CONTACT
Italy France Spain Malta
Chesterton Humberts Canary Wharf & Docklands 28 Harbour Exchange Square, e14 9ge
Gibraltar
Abu Dhabi
Dubai
Chesterton Humberts Islington 327-329 Upper Street, n1 2xq
Singapore
South Africa
chestertonhumberts.com
Australia – Brisbane Australia – Sydney
Chesterton Humberts Tower Bridge 220 Tower Bridge Road, se1 2up