Areas close to the Olympic Park will benefit from improved facilities and transport links. But there is a double-edged sword. With about 35,000 homes planned in and around the park over the next 20 years, there may be localised pockets of over-supply at certain times during the development cycle, which could cause values to dip.
- © David George
So buyers still need to do their research - and cherry-pick developments that have an edge in terms of location, design or price. Within one postcode, there are big differences. The Olympics will come and go; arguably, a more important driver of value is the distance from the capital’s main financial centres, Canary Wharf and the City.
Areas between the two - such as Bethnal Green, Bow, Mile End and parts of Hackney, all in travel Zone 2 - rather than outer east London are worth focusing on. They are established residential areas, though sometimes run-down, where the number of big regeneration sites is limited.
They also remain relatively affordable. It is possible to buy one-bedroom flats for less than the £250,000 stamp-duty threshold. And certain developers are trying to make a mark with good-quality architecture.
Queensbridge Quarter is an eye-catching scheme being built as part of the Holly Street regeneration programme in Hackney. There are 151 apartments, priced from £265,000. Modern City Living, the developer, is building several such design-led schemes across central London. Call estate agent Currell on 020 7241 4111.
© David George
Bow is poised for more growth because it is at the centre of a “golden triangle” formed by the City financial district, Canary Wharf and the Stratford Olympics zone, says Sheena Ellwood of Telford Homes.
“According to the Halifax, there are eight postal districts close to the Olympics site where prices are 25 per cent below the London average. This highlights the area’s relative affordability,” she says.
Merchants’ Quarter is a redevelopment of the former British Estate just off Bow Road. Telford Homes is building six new apartment buildings comprising 161 flats for sale on the open market, while EastendHomes, a not-for-profit “social landlord”, is remodelling two tower blocks that will be re-let to tenants. New commercial space for existing shopkeepers and businesses, plus landscaped zones and a community centre, are also being built as part of the regeneration project.
All homes have been sold but resales are likely to appear on the market before the first completions next summer as most were bought by investors. Telford has several other east London schemes in the pipeline, including one in Whitechapel. Call 0870 8720987 for deatils.
The Limehouse Cut shoots through Bow, Stratford and the Lea Valley. Sections of the canalbank remain run-down, but regeneration has taken hold.
Caspian Wharf is a new six-storey brick-and-glass building of 82 flats. Prices start at £205,000 for a studio. Call developer Berkeley Homes on 0844 800 1152.