Property insider: new build homes in London — a guide to buying property

During the frenzied days of 2014 the typical buyer of a shiny new London apartment was a wealthy, overseas buyer looking for an occasional crash pad in Europe’s most fashionable city.

But as the market in London has started to cool down and Brexit has been hurled into the mix, the new homes market has seen a sea change.

Tougher tax rules have deterred investors — national and international — while simultaneously the Government’s Help to Buy scheme means first time buyers can pick up a box fresh new home with just a 5 per cent deposit.

This has put “middle market” owner-occupiers back in the new homes driving seat — and has concentrated developers’ minds on producing quality homes for under the £600,000 Help to Buy price limit.

Today the new build market, says Nick Vaughan, of Savills Greater London new homes team, is steady rather than soaraway, and buyers are a highly discerning bunch.

“We are seeing a lot of shopping around among buyers who are very educated about the market around them,” he says. “There are buyers at all levels of the market but they are not going to pay over the odds and that is it.”

WHERE TO BUY A NEW-BUILD HOME IN LONDON

He agrees that UK owner-occupiers now dominate middle market new build sales, and his advice is to look along the farther reaches of the Elizabeth Line for a combination of value and huge potential.

Southall and West Ealing will both be connected by Crossrail by the end of this year, and new homes sell at around £600 to £750 per sq ft.

This is significantly cheaper than, for example, Ealing Broadway, at north of £1,000 per sq ft.

“There is a reason for this,” admits Vaughan. “Ealing Broadway is obviously a very, very well established area. But in terms of journey time it is going to be very similar to the West End using Crossrail.”

In north east London Vaughan is excited by the prospects for Tottenham Hale, where hundreds of new homes are being built around the River Lee Navigation and in the longer term transport benefits are promised by Crossrail 2.

Jason Margetts, of Savills East London new homes team, says property is selling steadily — rather than frenziedly — at prices anywhere from a budget £550 per sq ft to a punchy £2,500 per sq ft.

Off plan, homes tend still to be the preserve of investors who are able to wait months or even years to take possession of their new property. But for completed homes, he agrees that owner-occupiers rule.

“We are seeing a lot of domestic buyers,” he says. “Help to Buy has unlocked a lot of schemes and we are seeing a lot less Buy to Let investors.”

Margetts’ tips for buyers include hip Hackney Wick where a series of small developments are creating a new urban village — and one with a slightly raw edge. The artists’ favourite is seeing a rebirth, and is arguably a more authentic, interesting place than the adjacent Queen Elizabeth Olympic Park with its waterfront bars and restaurants.

It is also — by London standards — good value for money with new homes selling from around £675 per sq ft.

Margetts is also impressed by the regeneration of both Deptford and Lewisham, where hundreds of millions of pounds of investment is going into both new homes and amenities.

“Deptford High Street is only going to get better and there is the potential of an extension of the Bakerloo Line to Lewisham which would really give it a boost.

Prices here range from around £675 to £725 per sq ft — a 10th of the price of prime central London where new homes regularly sell for £7,000 per sq ft.

KEY QUESTIONS TO ASK WHEN BUYING A NEW BUILD

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