The fundamentals are in place for sustainable rental demand and price growth
Urban regeneration has been proven time and again to boost property prices, and when that regeneration conspires with strong existing fundamentals the upward pressure on values is explosive. For investors in Wembley property, the future price growth (which has already outperformed similar areas) promises to be dynamite.
Outperformance of Wembley property is predicated on a number of factors, including:
- the existing amenities and facilities in Wembley
- the spreading of economic growth from London’s centre;
- the huge regeneration program underway; and
- the potential for a Crossrail link
Existing amenities are evolving
The fortunes of the Wembley property market has long been linked to the area’s facilities and amenities. The development of the Empire Stadium in the 1920s, and the two-year British Empire Exhibition, put Wembley on the map. Local roads were made more accessible and people moved from the centre to the new suburbs. In the thirty years between 1901 and 1931, Wembley’s population increased ten-fold, from 4,500 to 48,500.
After a period of decline in the 1970s, new regeneration of Wembley has gathered pace. Most people think of the redevelopment of the iconic Wembley stadium when asked about the regeneration of the area, but there are many other examples, including the Brent Civic Centre and London Designer Outlet Centre.
These dynamics and proximity to great leisure and entertainment have made the area a target for a young, vibrant population. There is a thriving student community here, and this has proved to be beneficial to home prices in the wider community: students add to demand and reduce supply, pushing up prices of new build properties that are more attractive to young professionals.
Wembley property scores with football
In May 2015, research by eMoov found that in the eight years since the new Wembley Stadium was completed, Wembley property prices rose by 53%, from £208,697 to £368,944. The positive effect of having a major sports facility on the doorstep shouldn’t be dismissed. In a separate study, easyProperty found that Wembley property prices rose by an incredible 395% between 1991 and 2015.
However, this rate of price growth looks set to be eclipsed over the coming years, and has already taken off in the last few months: the average price at Wembley Park, for example, is now already over £400,000.
Economic growth is spreading from central London, and growth in the outer zones is set to outstrip the growth in Zone 1 for decades to come. Bilfinger GVA predicts that Zones 2 and 3 will average a 16% growth in jobs by 2035, as major regeneration projects and major improvements to connectivity take effect. This is exactly the conditions which are already benefitting Zone 4 Wembley property.
Wembley regeneration providing stunning jobs growth
According to London’s Mayoral office, Wembley can accommodate around 11,500 new home and will support 10,000 jobs because of its regeneration programs that are revitalising the area. Not only will local jobs be created but, for those working in the City, offices have never been closer. There has always been a trade-off between commute time and choice of living location: but the difference between property prices in Zone 2's Finchley Road and Wembley Park is now more than £1 million – yet Wembley is just eight minutes away.
Wembley property benefits from being close to one of the most sought after pieces of London real estate: proximity to a tube station. Wembley really does have Zone 4 property prices with Zone 2 travel connections – Baker Street is a mere 13 minutes tube journey. As connectivity improves further and economic growth spreads from the centre, Wembley property, will converge with property prices in Zones 2 and 3.
Crossrail could be coming to Wembley
And if Brent Council gets its way, connectivity to Wembley will benefit from a new Crossrail link from Old Oak Common in the future, and unlock even more rapid economic growth in Wembley.
With all this economic and regenerative activity taking place, the focus is shifting from retail and leisure to residential. Astute property investors like Elisabetta Barone are already taking advantage. Speaking to the Evening Standard, she said of her purchase in Wembley, “I’d seen regeneration have a huge impact on other parts of London and was confident the same would happen in Wembley. The public transport links are good and it’s just £20 in a taxi to Heathrow.”
Why invest in Wembley?
When it comes to property investment, ensuring that the fundamentals are in place for sustained and sustainable growth should be the property investor’s number one concern. Wembley property ticks all the boxes.
To discover more about property investment opportunities in Wembley and beyond, call Gladfish today at +44 (0)207 923 6100.