Fri 7 Nov 2008
London calling
With all eyes on London for 2012, building in a smart location may be the key to unlocking the market. Ginetta Vedrickas reports.Times may be tough in the new homes market but never before has location been so important. With all eyes upon London in the lead up to 2102, many developers are going full steam ahead and building new homes, which will capitalise on the Capital's improved transport links.
Stratford, the site of the proposed Olympic Park, is at the hub of transport improvements, which the dedicated Olympic Transport team at Transport for London, TfL, describe as 'one of the best connected public transport centres in the world'. Aside from Crossrail which will link Stratford as far as Maidenhead to the west and to Shenfield and Abbey Wood in the east, proposals for a twelve carriage Olympic Javelin high speed train travelling up to 225 kilometres an hour will link the Olympic Park with Kings Cross St Pancras in central London in seven minutes and Kent in ten minutes. Other improvements include the extension of the east London line to Highbury and Islington in the north and West Croydon in the south as well as many upgrades to existing lines.
In Stratford, Genesis Housing Group has won final approval for plans to develop over 650 homes close to the 2012 Olympic site by a combination of Newham Council and London and Thames Gateway Development Corporation (LTGDC). The first time a Genesis housing development has included a hotel; this is one of the organisation's biggest land acquisitions, including several residential blocks and commercial and retail units. Genesis plans to build around 35 per cent affordable homes including social rent and shared ownership, which, according to a GLA stage II report, "has the potential to deliver significant new employment while also delivering a large number of new homes in this highly accessible location."
Steve Coleman, Genesis Group Development Director says: "We are very excited to be able to focus on developing this site. The homes will contribute towards reducing the housing shortage in London and will have a positive economic impact on the area. This mix of tenures will attract a wide range of people to the area, helping to create a strong, sustainable community."
Barratt Homes is also involved in several projects, which hope to capitalise on the City's improved transport. In Dalston, Hackney work has started on the £160 million key regeneration project Dalston Square where Barratt are building 550 new homes, shops, a library and archive, plus a brand new station for the East London line extension at Dalston Junction. Chosen by Hackney Council, Transport for London (TfL) and the London Development Agency, over 30 buyers have already laid deposits for homes which will give them a great lifestyle and ease of accessibility. MD Adam Lawrence says: "Dalston Square is the next big piece of the London jigsaw - the regeneration project that will finally lift Hackney into another league. Judging by the amount of advance interest, the market seems to think so, too." The project spans two phases, Dalston Lane South and Dalston Junction Interchange, with the new Dalston Square linking and integrating them. Both sites include new homes, some going on top of the new station, which is due to open in 2010.
Barratt's other best selling project is their latest development The Elektron near London Dockland's Canary Wharf, which is selling strongly ahead of construction. With almost 400 sales off-plan, less than 50 apartments remain available for sale at the site, which was formerly an electricity switching station off Aspen Way at East India Dock, Leamouth. Operations director Gary Patrick says: "The Elektron captured the imagination of the home buying public from the outset, and continues to do so. It's hardly surprising, as it occupies a prime site just strolling distance from Canary Wharf, a fabulous location, with a Docklands Light Railway station right next door." When complete, 437 one- and two-bedroom apartments will have easy access to Canary Wharf, the City and nearby City Airport and the Elektron even has its own pedestrian link with East India Dock DLR station.
Historically, Ilford in Essex has rarely have been described as 'the gateway to the world' but, thanks to Galliard Homes' Vision 20, 138 owners of luxury apartments will enjoy unrivalled access to Central London and, with a mere eight minute journey to Stratford and the Games making it a smart investment buy. Unsurprisingly, only a handful of apartments remain unsold.
"Ilford will see a great deal of change over the next few years," says marketing director Madeleine Flower. "The town is currently undergoing regeneration and is also on the proposed Crossrail route, linking it directly to Central London. Coupled with the expansion of the Thames Gateway and the knock-on effects of the 2012 Olympics just down the road in Stratford, Ilford could not only be a convenient place to live but also a wise place to invest."
In these credit-crunched times, many developers are finding that buyers are strongly influenced by soaring fuel costs, which lead them to seek homes in locations where they can avoid using their cars. Bellway Homes' Julian Kenyon says: "High fuel prices and the credit crisis are leading to many motorists leaving their cars at home - and those who do venture out value their fuel more by driving more slowly. Price-conscious commuters looking to move home are heading not for leafy, remote spots but for homes that are close to railway stations and town centres."
Bellway has a range of developments, which are within reach of stations set to benefit from Crossrail. In Ilford, apartments at Medici, just one mile from Goodmayes Station are appealing to commuters as it has fast links to Liverpool Street Station. Cotton Gardens in Romford, marketed by Bellway Thames Gateway, is also proving perfect for commuters as it is close to Romford town centre with its rail links to London Liverpool Street just half an hour away. Bellway Thames Gateway is building two developments in Harold Hill, Park Central and Brooklands, which are both a short bus ride from Harold Wood Station. Park Central is a small development of just 45 homes at Gooshays Gardens and Brooklands is a development of seventy-five one- and two-bedroom apartments and three-bedroom houses situated off Whitchurch Road.
Estate Agency Savills is currently selling The Forge built by award-winning developer Glenkerrin. Near to Crossrail's proposed Isle of Dogs station in east London, a spokesperson says that the project "will appeal to first-time buyers who want to live in Canary Wharf but can't afford the prices" - adding that investors are also eyeing up this development. According to Savills: "The construction of the new Crossrail station on the Isle of Dogs will be a huge added attraction for potential buyers."
The location may be appealing but buyers may also find the site's history a draw. Along with new build, the development is being carved from the Grade II listed old forge where the iron hull of Isambard Kingdom Brunel's SS Great Eastern was made. The giant steamship was the first iron-hulled ship in the world and, at the time of her launch in 1858, was the largest ship in the world. Along with commercial space, the Forge will contain studios, one-, two- and three-bedroom apartments set in three blocks with prices starting from £200,000.
Crossrail may be responsible for regenerating much of London but the proposed east London line extension is also having an impact throughout the Capital. The Manhattan Loft Corporation has a reputation for creating stylish developments in the City's hotspots and, despite a less than easy market, they've been proved right with their development which lies south of the river on the fringes of East Dulwich in SE22. The development, a refurbishment of a former Baptist church, which is to be converted into duplex and triplex apartments plus four houses, is a short stroll from Honor Oak Park overground station, which will welcome the extension of the East London line in 2010. Just one of the units now remains for sale, a three-bedroom apartment priced at £495,000 and the four houses will be released in 2009. Katherine Reeve, Sales and Marketing manager for the company confirms that the new east London line has proved very appealing to purchasers, particularly commuters.
Improved transport links may be making historically unfashionable London spots more enticing but locations don't come more stylish than Clerkenwell, where developer Marldon is launching its next scheme. 8 Bowling Green Lane is a stone's throw from Exmouth Market, Clerkenwell Green and a short stroll to Farringdon Station, on the Crossrail link, and will ultimately be a mixed-use scheme made up of thirteen apartments. Selling agent David Salvi of Hurford Salvi Carr says: "The properties are priced between £435,000 up to £895,000 for the penthouse but are expected to sell well, albeit slower than in previous times."
Salvi adds that the incentive for buyers who can now buy into a location that over the next few years will have fast access to Heathrow, the Eurostar (and therefore the continent), central London and Canary Wharf is proving highly attractive: "For our international and commercial buyers, Farringdon ticks all the boxes. This is in a strong location and, in the current market, if anything can save housebuilders, then location can."
Posted by Show House
in Adam Lawrence, Barratt Homes, Bellway, Features, Genesis Housing Group, Julian Kenyon, Madeleine Flower, Savills, Steve Coleman on Fri 7 Nov 2008
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