Haringey tipped as one of top ten for house price growth
- Credit: Archant
Portico has revealed that Haringey is poised to be one of the hottest areas for house price growth in the next four years as developers eye up the next target for gentrification
Haringey is having a ball in July 2017. Hot on the heels of the news that homes in Haringey are ‘earning’ 88 per cent more than their owners, Portico have revealed that Haringey is one of the top ten areas tipped for house price growth in the next four years.
Between now and 2021, the property agency’s yield map shows that rental homes in Haringey could yield up to 4.1 per cent.
“It is landlocked now with Crouch End above, Hornsey and then Tottenham to the side, it’s an area that will slowly start to be gentrified and there is no land left in London so people start to look at slightly depressed areas,” said Mark Lawrinson, regional director at Portico.
Following in the vein of Hackney’s recent rise to Hipster heights, Haringey is gradually becoming trendier, with investment in retail and food and drink venues and access to the green spaces of Alexandra Palace and Hampstead Heath being paramount to attracting young, urban professionals.
“The Haringey Ladder is an area that has been overlooked for years and has seen little gentrification, but is now starting to emerge as a key property hotspot. It has a vibrant high street and is on the door step of large outdoor spaces such as Finsbury Park and Alexandra Palace,” said Mr Lawrinson.
Lawrinson added that investment in infrastructure is crucial to future success. The proposed Crossrail 2 route will go through Wood Green, making the area more commutable for city workers.
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“If Crossrail 2 is given the green light, it’s very likely we’ll see significant change to this whole area, which will push up house prices significantly,” said Mr Lawrinson.
Transport links are vital, agreed Marc von Grundherr, lettings director at Benham & Reeves Residential Lettings, who added: “We have been witnessing a swift rise in popularity of Zone 4’s Colindale (Barnet) that has been completely transformed in recent years. Colindale’s location on the Northern Line makes journeys to both the City and the West End particularly convenient in just half an hour; it has further benefited from the introduction of the Night Tube.”
Landlocked by the more affluent areas such as Crouch End and up and coming Hornsey, also on the plus side for the area is its proximity to Tottenham. The Tottenham Hotspur football stadium is currently undergoing a major high-tech redevelopment, to be followed by accompanying flats.
With another bold new development at Hornsey Rise, Mr Lawrinson, who has seen footfall in Portico’s Walthamstow and Highbury offices increase, added: “at the moment all eyes are on Tottenham.” The borough placed 8th on Portico’s list with rental yields of 4.5 per cent.
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An average two bedroom house in Haringey will set you back £535,000, with two bedroom rental properties going for £1,475 per month. With lower asking prices currently than in the neighbouring areas such as Crouch End where the average house price is £697,663 and yields reach 3.6 per cent, and Finsbury Park with an average price of £604,312 and a maximum yield of 3.9 per cent, the borough has greater potential to increase in value in the next four years.
Haringey also offers higher rates of increase than in Prime Central London, where prices and rates of sale have stalled somewhat in the past year due to uncertainty surrounding Brexit and questions over the economic future of London as a solid investment.
Mr Lawrinson said: “Greater London definitely performed better than prime central London last year, and it’s likely this trend will continue throughout 2017. This is because prices in the outer boroughs in areas like Haringey are starting from a lower base, so there is greater potential for price rises.”
“We are finding increasing numbers of applicants relocating to London from overseas and rather than head straight for central London, they are now investigating other parts of London such as Colindale where regeneration continues apace,” agrees Mr von Grundherr. Tenants coming to Colindale can now find apartments offering a high specification and good amenities at more affordable rentals.
Higher house prices could mean that, unless rents rise, yields will fall. However, Mr Lawrinson comments that the 4 per cent currently yielded in the area is a positive sign, and with strong affordability currently, investors will make a strong return on their investment.
It’s the same story in Colindale, agrees Mr von Grundherr who points to Beaufort Park. “Investors who bought off-plan in the first two phases are getting yields above 8 per cent. Even recent investors are still achieving yields of 4.5 – 5 per cent. Some apartments rent out within days (and sometimes hours) of completion,” he said.
It’s London’s as yet depressed areas, ‘sandwiched’ by more prosperous regions that are next due for a boost, and as such are the best place to park an investment. “With the way London’s growing at the minute, there’s only one way that areas like this can begin to turn,” added Lawrinson.