House prices rise in regeneration areas
In the midst of a struggling housing market comes some reassuring findings. Recent research suggests houses around regeneration zones are seeing a greater price growth in each year.
Encouraging market findings
Research conducted by CBRE investigated 11 long term London regeneration projects predominantly starting between the years 2006 to 2010 and still actively in progress by 2019. The projects were all ‘opportunity areas’, as identified for development by the GLA. They discovered that properties within a radius of 750 metres of a regeneration zone attracted a faster price growth of up to, on average, 3.6% more per year, compared to houses within the wider surrounding area.
When viewing the property price growth for houses within a 750 metre radius of a regeneration zone from the beginning of the project, it was 1.5% greater per year than the average growth for the local authority. As the project develops and time passes, the growth premium gradually increases.
What’s the impact of regeneration?
Regeneration projects can have a significant impact on the immediate and surrounding areas, but they necessitate the need for significant investment from both private and public resources. It can improve the quality of life for those living and working there, with improvements to leisure, retail, public spaces, parks and infrastructure for easier travel. Interest in the region increases, consequently upping demand for housing and boosting house prices.
With increased demand comes an increasing need for efficiency where property transactions are concerned, and the likes of property inventory software, such as https://inventorybase.co.uk, help make inventories, inspections and bookings run more efficiently.
The changing face of an area
To highlight the impact the rejuvenation of an area can have, the regeneration of canal areas in parts of London, and particularly the investment to King’s Cross, have seen a 42% price increase in property values there, giving Granary Square a boost into the spotlight as the new centre for culture and leisure, with an influx of new restaurants and bars.
In some cases, regeneration involves overhauling or giving a boost to a current area in need of work. In other instances, it involves the generation of an entirely new neighbourhood. What’s clear is that regeneration area sales outperform those of the wider general market, making regeneration good for the region, those that live there and the housing market.