The role of regeneration in long-term value creation in London

A recent report by the Greater London Authority (GLA) revealed that 30 Housing Zones across London have attracted investments worth over £30 billion. Over the next few years, these redevelopment master plans will deliver over 75,000 new homes and generate nearly 150,000 jobs.

From Meridian Water in Enfield to Edgware Road in Westminster, New Bermondsey, Wembley, Poplar, Stratford, Colindale, Southall, Nine Elms, Woolwich and many other areas, these regeneration zones are attracting investors from all over the world.

What does urban regeneration in London include?

In addition to new homes, the regeneration of an area also features large-scale upgrades to the transport, infrastructure, education and lifestyle facilities available to residents. Given its holistic approach, such projects usually involve a public-private partnership between council administrations, developers, institutional investors, transport authorities and other local partners.

How are areas selected for regeneration?

There are many pockets of land within the city that once had transport or industrial relevance, such as the Docklands of East London and Battersea Power Station. However, as London expanded, new neighbourhoods emerged, and these areas drew little attention. They are now being tapped again for their investment potential and connectivity benefits. Find out more about some of London’s top regeneration areas.

How does regeneration impact property prices in London?

The scale at which well-planned regeneration can transform the quality of life has a direct impact on property prices, as it offers consistent rental demand and better value appreciation than neighbouring areas. One study by a leading property data company of 11 regeneration areas in London found that property prices in these areas grew by more than 3.6% annually, with an average compound annual growth rate (CAGR) of 2.2% higher than those within a 10-minute walk. The growth was highest in Paddington (5.8%), followed by Nine Elms (3.2%) and Elephant & Castle (2.5%).

What makes regeneration attractive to buyers?

• Improvements in transport and infrastructure, such as the extension of the Underground to Nine Elms and Battersea Power Station.
• New Homes by top developers such as Berkeley, Mount Anvil, Barratt London, etc., offer stylish living spaces with world-class amenities, appealing to modern buyers.
• An increase in employment opportunities further boosts housing demand from working professionals.
• Repositioning an area as a desirable place to live, from an overlooked neighbourhood, attracts investors and landlords looking to capitalise on rental demand.

New and ongoing regeneration in different prime neighbourhoods is also a reason many overseas buyers see London as a golden opportunity to grow their investments. It is also a key indicator for many buyers when trying to spot a good property deal in the UK capital.

What should you look for when planning to invest in a regeneration-led scheme?

• Check the numbers to see the price growth and rental yield projections in the area before, during and after regeneration is completed.
• Research planning permissions, expected timelines, transport upgrades, property values, and investment strategies.
• Getting in early as an investor is usually the most beneficial, as property prices tend to grow fast, and progress becomes visible.
• Finding the right property, whether it is a cosy studio or a top-floor penthouse, there is something to suit every need and budget.
• Consider the risks of regeneration, such as oversupply, gentrification, and built-in premiums, when choosing a neighbourhood to invest in.

Where are some of London’s most popular regeneration areas?

Many leading regeneration zones are also referred to as Opportunity Areas by the GLA. A typical Opportunity Area is a large brownfield site suitable for the development of at least 2,500 new homes and the creation of 5,000 jobs.

Old Oak Common and Park Royal

Considered the UK’s largest ongoing regeneration project, the Old Oak and Park Royal Development Corporation (OPDC) aims to add over 25,000 new homes and create employment for more than 65,000 professionals.

Beaufort Park in Colindale

Berkeley Group’s St George has undertaken a large-scale transformation of the former RAF site in Hendon, North West London and transformed it into a vibrant upscale residential neighbourhood. As the first agent to open an on-site branch at Beaufort Park, Benham and Reeves has helped many overseas landlords successfully buy and let their properties at the development, earning attractive rental yields.

The Green Quarter in Southall

A regeneration success story in Southall, The Green Quarter is an 88-acre masterplan by Berkeley, where we have yet another on-site branch delivering consistent and strong rental yields for our clients. With an average of over 35 enquiries per available unit, our agents report exceptionally high tenant demand at this site. Grand Union near Wembley is another well-known regeneration scheme spanning nearly 22 acres with over 3,300 new homes.

Nine Elms and Battersea

A hotspot for investors looking to secure a Zone 1 property, the area between Lambeth Bridge and Battersea Power Station includes the regeneration of over 500 acres. Leading developers have joined hands with GLA to develop over 20,000 new homes. With an on-site branch at Nine Elms Point, we have exciting deals at other popular developments in the area like Battersea Power Station, London Square Nine Elms, DAMAC Tower, One Thames City and more.

Royal Arsenal in Woolwich

The Royal Arsenal regeneration involves the transformation of a former munitions site into a vibrant new riverside residential neighbourhood. Led by Berkeley’s Royal Arsenal Riverside, where we have an on-site branch, our staff is delivering consistently attractive yields for clients who invested in this East London regeneration even before the opening of the Elizabeth Line.

Thamesmead and Abbey Wood

A 30-year plan in the making, the Thamesmead and Abbey Wood Opportunity Area plans to add over 8,000 new homes in the next 15 years.

Brent Cross and Cricklewood

With an investment of nearly £8 billion in the neighbouring areas of Brent Cross, Hendon, and Cricklewood, developers plan to build almost 10,000 homes, creating over 25,000 local jobs.

Canada Water, Greenwich Peninsula, Olympic Park and White City are also popular regeneration areas that have caught the interest of investors and homebuyers.

Finding the right property with Benham and Reeves

We have 21 London branches spread all across the city, along with 14 overseas offices and multiple country desks to help buyers and investors find the right property in the area or postcode of their choice. Furthermore, our connections with top developers also give us early access to upcoming schemes that our clients can leverage to identify new opportunities in regeneration zones.

Looking to invest in a regeneration area? Contact us.