Savills plc
Savills plc
04/15/2021 | Press release | Distributed by Public on 04/14/2021 08:03
How a rise in personal mobility could unlock residential value in the capital
The top image is a value heat map and highlights areas within 10km of Trafalgar Square. As expected, the areas of high value are concentrated around Hyde Park and along the river, while areas of relatively good value are to the east and south east as shown.
The map above is a connectivity heat map using PTAL rating to outline how connectivity may differ (PTAL stands for Public Transport Accessibility Level and is a measure of connectivity to the public transport network for locations within London). As you can see, there is a correlation as many areas of lower value also have a lower PTAL rating. Given how central all these locations are, they may increase in popularity due to the rise in micromobility.
We have highlighted three areas which we believe offer the best opportunity for growth, where an increase in connectivity is also met with a significant development pipeline.
Hackney Wick
There has been strong demand in Hackney Wick for a number of years with the blueprint for successful development being set by the Bagel Factory in 2018. This is now being followed by schemes such as Lock 19, Stone Studios and Wickside. The quality of place has been steadily building over the past few years and combining this with increased connectivity to one of London major transport hubs in Stratford suggests there is further growth to be seen.
Poplar
Just down the river from Hackney Wick is Poplar, another area of relatively good value. Berkeley is launching Phase 1 of the Poplar Riverside scheme providing major regeneration in the area and is just one of many sites due to be developed over the next five years along the river Lea. This will create a vibrant residential-led community which together with improved access to the Jubilee stations through micromobility provides a strong argument for growth in the medium to long term.
Old Kent Road
Lastly, and possibly the best example, is Old Kent Road. The value heat map shows a large area of relatively good value following the road to the south east towards Greenwich, yet the closest tube station is Elephant and Castle, a zone 1 location.
Similar to Poplar, there is a large pipeline of development forecast over the next five years, again led by Berkeley Homes. The site is currently around a 30-minute walk from the tube or a 10-minute bus journey, however, it would also only take about 10 minutes on a bike showing how effective it can be as a form of urban mobility.
With house prices currently significantly lower than those surrounding the station it would appear that there is substantial opportunity for growth here as well.