With the stamp duty deadline fast approaching, you may be thinking of buying or investing in a new London property early in 2021.
Of course, the past 12 months have been anything but normal, with the UK finally severing ties with the European Union and the coronavirus pandemic continuing to impact the economy.
So, how is the London market performing right now and where are the capital’s property hotspots for 2021?
We’ve got all the answers right here…
House prices in London
According to Rightmove’s December House Price Index, which took stock of the property market’s overall performance in 2020, property prices across the UK rose by between 5.5% in the South East to a huge 10.6% in the North West.
London, however, saw annual price growth 3.5% – well below many other areas of the country.
However, that capital-wide figure only told part of the story, with borough-by-borough variations suggesting everything from a -4.5% drop in prices in Tower Hamlets to a huge 10.6% rise in Haringey.
Best London areas for buyers in 2021
With so much variety in London house price growth throughout 2020, where to buy will very much depend on your personal circumstances.
With regeneration and development planned across the capital, though, these four areas might just be what you’re looking for…
As many as one in seven Londoners is looking to move out of the city in the wake of the Covid-19 pandemic, according to research by The London Assembly Housing Committee.
That’s seen a huge increase in demand for property in places like Enfield, which is the last London borough to the north before you emerge on the other side of the M25.
You get far more ‘bang for your buck’ in Enfield compared with many other North London hotspots.
And the area’s transport links back into the city are superb, too.
Average property price in Enfield (Dec 2020): £464,569
Annual growth (2019-2020): 4.9%
Tottenham’s latest round of regeneration came courtesy of the new Tottenham Hotspur Stadium at White Hart Lane.
There are also plans for a raft of new homes at Tottenham Hale, plus a huge upgrade to Tottenham Hale station that will be completed by the end of 2022.
The area’s rail links into central London, though, are already strong and despite average property prices in Haringey as a whole soaring by 10.6% in 2020, Tottenham’s average price still comes in under £500,000, according to Rightmove data.
Average property price in Tottenham (Dec 2020): £447,198
Annual growth (2019-2020): 1%
Harrow has always been a popular North London spot thanks to its amazing transport links into the city.
Underground trains from Harrow-on-the-Hill reach Baker Street in just 30 minutes, while property in Harrow is perfect for families thanks to streets lined with large 1930s semi-detached and detached homes.
Prices haven’t got out of control in Harrow over the past 12 months, either, with the average price for a home in the borough remaining under £600,000.
Average property price in Harrow (Dec 2020): £576,969
Annual growth (2019-2020): 5.7%
So, placing Islington on our list of property hotspots might be controversial given it’s well-known as one of North London’s most expensive places to buy.
But, if you always thought Islington was unaffordable, the door is now slightly ajar.
Islington’s classic Georgian properties remain hugely in demand and the area’s location in zone 2 makes it ideal for those who need an easy commute back into the city.
Prices in the borough have dropped in 2020, though, according to Rightmove and this may well put some homes within reach of a wider demographic of buyer.
Average property price in Islington (Dec 2020): £745,083
Annual growth (2019-2020): -1.2%
Best property investment hotspots in London for 2021
As many renters switch their priorities towards more space and greater connectivity when working from home, landlords need to adapt.
That could mean looking for a new investment area in the outer ring of the capital, as many tenants look to move further out of the city in the so-called post-Covid-19 ‘race for space’.
Here are two areas worth considering for your next investment property…
Located in Haringey in North London, Bounds Green is popular with renters priced out of the borough’s more expensive areas like Highgate and Muswell Hill.
Property is still priced competitively in Bounds Green, too, meaning good yield potential for savvy landlords.
Popular with young professionals and families, and with good transport links and schools, Bounds Green remains a great area to invest in in 2021.
Regeneration since 2016 means West London’s Greenford is home to much more of what renters want in 2021.
The cost of property, though, remains affordable compared with many of the area’s West London neighbours, with an average price below £500,000.
With good Underground links into town and a revitalised town centre, Greenford is popular with renters seeking more space and a slower pace for their monthly outgoing.
So, it’s no surprise to see Greenford landlords have enjoyed a huge 17.6% annual rise in rents between the third quarter of 2019 and the same time last year.
If you’re thinking of buying in London, now is a great time to do so – we explain why that is in one of our most recent posts.
And if you’re a first-time buyer in the capital, our guide can help, with some great tips on everything you need to do.