cbre hot 100 2016 winners in london’s residential market · nine elms point. cbre residential...

CBRE Hot 1002016 winners in London’s residential market

2–3CBRE Residential Hot 100 2016

Contents Best performing locations 4–5

Most affordable boroughs 8–9

For nature lovers 10–11

For shopaholics 14–15

Boroughs for renters 16–17

Best school provision 20–21

Tallest towers 22–23

Highest level of development 24–25

Demographic trends 28–29

Best economic performance 30–31

The year is drawing to a close and so our annual Hot 100 report is published. Find out where was hot in 2016.


Although prices remain highest in Central London, with homes in Kensington and Chelsea averaging £1.35 million, the other London boroughs continue to see the highest rate of growth. For the second year running Newham tops the table for price growth. This year prices in Newham increased by 24%; up from 16% last year. The areas characterised by significant regeneration, such as Croydon and Barking and Dagenham, are recording price rises of 18% and 17%, which is well above the average rate of 12%.

Top Ten Price growth

1 Newham 23.7%

2 Havering 19.0%

3 Waltham Forest 18.9%

4 Croydon 18.0%

5 Redbridge 18.0%

6 Bexley 17.2%

7 Barking and Dagenham 17.1%

8 Lewisham 16.7%

9 Hillingdon 16.5%

10 Sutton 16.5%

Top Ten Highest value

1 Kensington and Chelsea £1,335,389

2 City of Westminster £964,807

3 City of London £863,829

4 Camden £797,901

5 Ham. and Fulham £795,215

6 Richmond upon Thames £686,168

7 Islington £676,178

8 Wandsworth £624,212

9 Hackney £567,230

10 Haringey £545,025

Top 10 Best performing locations

360 Barking


Using a simple ratio of house prices to earnings we can illustrate the most affordable boroughs. For the second year running Bexley comes out as the most affordable for its local residents. In second place is Bromley, with Greenwich a close third. Tower Hamlets makes its first entrance in the top ten (last year in 12th slot), replacing Hillingdon, which is now in 14th place.

House price to earnings ratio %

1 Bexley 8.17

2 Bromley 8.79

3 Greenwich 8.91

4 Havering 9.00

5 Barking and Dagenham 9.43

6 Redbridge 9.75

7 Kingston upon Thames 9.88

8 Croydon 10.07

9 Tower Hamlets 10.12

10 Sutton 10.35

Top 10 Most affordable boroughs

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2 Bromley8.8%

3 Greenwich8.9%

1 Bexley8.2%

8 Croydon10.1%

10 Sutton10.3%

7 Kingston upon Thames9.9%

6 Redbridge9.7%

5 Barking and Dagenham9.4%

4 Havering9.0%

9 Tower Hamlets10.1%


Outside space, fresh air and greenery are increasingly recognised as necessary for wellbeing. Havering has the largest percentage of open space being home to many parks such as Raphael Park, Hylands Park and Upminster Park. Upminster Golf Club is also located in Havering. Richmond upon Thames comes in at third and is well known for Richmond Park and Kew Gardens to name a few; a large part of the borough is designated as part of the Metropolitan Green Belt. Although, unsurprisingly we don’t find any inner London boroughs in this top ten, there are many oases of calm to be found in the city centre, not least, Hyde Park, Regent’s Park and Kensington Gardens.

Total square meters of green space

% of borough

1 Havering 67,575,440 59.0

2 Bromley 86,245,303 57.4

3 Richmond upon Thames 33,500,925 57.0

4 Enfield 39,861,193 48.5

5 Hillingdon 52,107,306 45.0

6 Redbridge 22,750,573 40.3

7 Greenwich 19,816,164 39.3

8 Bexley 24,997,725 38.9

9 Barnet 32,665,095 37.7

10 Hounslow 21,221,417 37.5

Top 10 For nature lovers


A recent CBRE survey highlighted the symbiotic relationship between quality retail and residential development, with 77% of respondents saying good retail provision had a strong positive impact on residential values. Unsurprisingly Westminster, which includes the famous shopping destinations of Oxford Street, Regent Street and Bond Street has the highest number of shops. Although Islington misses out on a top ten slot for shops, it creeps in at number 10 for food and beverage outlets, with over 500 restaurants, cafes and bars.

Top 10For shopaholics

Number of shops

1 Westminster 5,937

2 Barnet 2,189

3 City Of London 1,895

4 Kensington & Chelsea 1,822

5 Hammersmith & Fulham 1,590

6 Newham 1,587

7 Croydon 1,552

8 Wandsworth 1,538

9 Brent 1,479

10 Lambeth 1,170

Food and beverage outlets

1 Westminster 2870

2 City Of London 1438

3 Barnet 732

4 Wandsworth 640

5 Croydon 580

6 Camden 564

7 Lambeth 564

8 Kensington & Chelsea 559

9 Hammersmith & Fulham 548

10 Islington 512

Which type of retail outlet would you most like to have in your residential development?

Supermarket

54%

Restaurant

54%

Bar / wine bar

44%

Delicatessen

34%

Convenience store

36%

Coffee shop / patisserie

70%

Retail would make a development more appealing

86% Good quality retail had a ‘strong positive’ impact on residential

77%Important to have a strong retail offering

83% Preferred independent stores

65% ‘Convenience’ was the main benefit of living around retail

91%


Top 10 Boroughs for renters

Highest rents pcm

1 Kensington and Chelsea £3,391

2 Westminster £3,188

3 City of London £3,108

4 Camden £2,634

5 Islington £2,306

6 Hammersmith and Fulham £2,250

7 Lambeth £2,183

8 Tower Hamlets £2,113

9 Hackney £2,057

10 Wandsworth £1,901

Lowest rents pcm

1 Bexley £1,051

2 Havering £1,138

3 Barking and Dagenham £1,170

4 Sutton £1,188

5 Bromley £1,276

6 Hillingdon £1,280

7 Croydon £1,311

8 Redbridge £1,312

9 Enfield £1,319

10 Waltham Forest £1,328

Rental growth %

1 Bexley 7.4

2 Havering 6.5

3 Islington 4.8

4 Lambeth 4.8

5 Hammersmith and Fulham 4.1

6 Harrow 3.9

7 Sutton 3.5

8 Brent 3.1

9 Enfield 3.0

10 Croydon 3.0

Share of private renters %

1 Westminster 43.3

2 Newham 42.5

3 Ealing 35.0

4 Lambeth 34.4

5 Hammersmith and Fulham 33.1

6 Kensington and Chelsea 33.1

7 Camden 32.0

8 Tower Hamlets 31.5

9 Wandsworth 31.2

10 Waltham Forest 30.0

Despite having the highest rental growth for the second year running, Bexley remains the cheapest borough with rents of £1,051 pcm. Unsurprisingly, the prime boroughs of Kensington and Chelsea, Westminster and the City have the highest rents, all in excess of £3,000pcm.

Nine Elms Point


London has 3,118 primary schools. Of these, 658, or 21%, are rated outstanding. Although Southwark has the highest number of outstanding schools, at 31, Harrow with 30 outstanding schools actually records the highest proportion of outstanding primary schools, at 38%. This top ten includes 11 boroughs as Kingston upon Thames, Newham, Barnet and Sutton all have 25% outstanding schools.

Top 10 Best school provision

BoroughShare of

outstanding schools

Number ofoutstanding

Total number of schools

1 Harrow 38% 30 78

2 Richmond upon Thames 31% 25 81

3 Southwark 27% 31 113

4 Lambeth 27% 26 98

5 Wandsworth 26% 30 114

6 Lewisham 26% 26 99

7 Redbridge 26% 25 96

8 Kingston upon Thames 25% 17 67

9 Newham 25% 27 107

10 Barnet 25% 30 120

11 Sutton 25% 18 72


We are having a resurgence of high rise development and London’s skyline is changing. The towers of today are so far removed from the much maligned council blocks of the ‘60s. Designed by starchitects, they come with a plethora of amenities and other benefits. The tallest tower in London is the Shard, at over 1,000 feet. The tallest residential tower in London is Berkeley’s The Tower, One St George’s Wharf. However, at ‘just’ 49 storeys, it will soon be overtaken by another Berkeley tower – South Quay Plaza and The Landmark Pinnacle. Also just coming out of the ground, we have the Spire London. Although it has fewer floors than South Quay Plaza and the Landmark, at 771 ft, it will be Western Europe’s tallest residential building.

Top 10 Tallest towers under construction

Top 10 Tallest towers with planning permission

Scheme Name Borough Developer Total homes Storeys

1 Landmark Pinnacle Tower Hamlets Chalgrove 822 75

2 South Quay Plaza Tower Hamlets Berkeley Homes SE London 888 68

3 Spire London Tower Hamlets Greenland (UK) Investment 861 67

4 The Diamond Tower Tower Hamlets Canary Wharf Group 611 59

5 One Nine Elms Wandsworth Dalian Wanda Group 487 59

6 1 Park Drive Tower Hamlets Canary Wharf Group 483 57

7 Wardian London Tower Hamlets Ballymore Group 756 55

8 The Madison Tower Hamlets LBS Properties 423 53

9 KPF Tower Tower Hamlets Canary Wharf Group 797 51

10 Principal Tower Hackney Brookfield Europe 329 50

Scheme Name Borough Developer Total homes Storeys

1 Alpha Square Tower Hamlets Drakar Ltd 634 65

2 South Quay Plaza 4 Tower Hamlets Berkeley Homes SE London 396 56

3 Morello Quarter - Morello Tower Croydon Redrow / Menta 499 55

4 New Covent Garden Market Wandsworth VSM Estates Limited 2971 51

5 AYKON London One Lambeth AYKON / DAMAC 450 50

6 Vauxhall Square Lambeth CLS Holdings Plc 578 50

7 Convoys Wharf Lewisham Hutchison Property Group (UK) Ltd 3500 48

8 Bankside Quarter Southwark Carlyle Group 489 48

9 Millharbour Village Tower Hamlets Galliard Homes 861 43

9 Portal West Business Centre Ealing City & Docklands Property Group 578 42

Spire London


As is typical across the whole of the UK, homebuilding in London falls woefully short of the levels needed. We estimate London needs to build around 52,000 homes per annum to keep up with demand, yet for the last decade or so, we built an average of 19,000 units each year. However, some areas are leading the way; Tower Hamlets currently has 9,400 units under construction with a further 17,000 in the planning pipeline. Greenwich also has 17,000 units with planning permission.

Under construction Units Schemes

1 Tower Hamlets 9,409 45

2 Newham 5,957 21

3 Southwark 4,402 37

4 Wandsworth 4,084 20

5 Greenwich 3,250 24

6 Croydon 2,932 23

7 Hackney 2,629 26

8 Barnet 2,538 29

9 Westminster 2,500 34

10 Brent 2,392 17

With planning permission Units Schemes

1 Greenwich 17,038 86

2 Tower Hamlets 17,006 194

3 Barnet 16,534 125

4 Newham 14,766 99

5 Hammersmith and Fulham 11,049 97

6 Wandsworth 10,753 169

7 Barking and Dagenham 9,068 41

8 Ealing 8,763 84

9 Lewisham 8,466 84

10 Southwark 7,687 260

Top 10 Highest level of development

London Dock


Top 10 Demographic trends

Largest population

1 Barnet 383,100

2 Croydon 380,700

3 Ealing 349,700

4 Newham 332,600

5 Enfield 329,000

6 Brent 325,300

7 Bromley 324,600

8 Lambeth 322,000

9 Wandsworth 318,000

10 Southwark 306,700

Strongest forecast population growth % Number

1 Tower Hamlets 20 57,420

2 Barking and Dagenham 18 36,648

3 Redbridge 15 44,610

4 Barnet 14 53,634

5 Newham 14 46,564

6 Hillingdon 14 41,510

7 Greenwich 14 38,220

8 Hackney 14 37,142

9 Kingston upon Thames 14 23,926

10 City of London 14 1,148

Highest number of working age % Number

1 Barnet 65.3 250,202

2 Croydon 65.1 247,670

3 Lambeth 74.6 240,300

4 Ealing 67.8 236,932

5 Newham 71.1 236,329

6 Wandsworth 73.7 234,300

7 Southwark 73.9 226,500

8 Brent 68.3 222,232

9 Tower Hamlets 74.3 213,226

10 Enfield 64.7 212,871

London has 8.7 million residents; nearly 6 million are of working age, with just under 1 million over 65 year olds. Clearly as the population grows, sufficient housing needs to become available. Tower Hamlet’s has the highest expected population growth, with nearly 60,000 additional residents forecast over the next decade. Luckily as our previous top ten shows it also comes in at the top for number of units currently under construction.


The housing market is inextricably linked to the underlying economic performance of an area. As economic growth increases and as employment increases, the demand for housing increases. Hackney with its burgeoning technical and creative hub, had the highest GDP growth last year and is expected to grow the fourth fastest over the next decade. Although Westminster has the largest overall economic base GDP, it had below average growth last year of 2% (in at 25th).

Largest current GDP growth %

1 Hackney 8

2 Newham 5

3 Southwark 5

4 Brent 5

5 Redbridge 5

6 Haringey 5

7 Wandsworth 4

8 Lewisham 4

9 Camden 4

10 City of London 4

Highest employment rate %

1 City of London 5

2 Hackney 4

3 Newham 4

4 Camden 4

5 Tower Hamlets 3

6 Southwark 3

7 Greenwich 3

8 Redbridge 2

9 Havering 2

10 Haringey 2

Largest forecast GDP growth up to 2026 %

1 Southwark 42

2 Camden 39

3 Hackney 37

4 Tower Hamlets 36

5 Hounslow 36

6 Islington 34

7 Harrow 34

8 Lambeth 34

9 City of London 34

10 Wandsworth 32

Largest forecast employment growth up to 2026 %

1 Southwark 20

2 Camden 17

3 Hackney 16

4 Tower Hamlets 15

5 Harrow 14

6 Redbridge 14

7 Haringey 14

8 Islington 13

9 Lambeth 13

10 Greenwich 13

Top 10 Best economic performance


cbreresidential.com/research

Jennet SiebritsHead of Residential Research Senior Director

T: +44 (0)20 7182 2066 E: [email protected]

Mark CollinsLondon Residential Chairman


Lisa HollandsLondon Residential Managing Director


Land Registry, Molior, EGi, National Statistics, Rightmove, Nationwide.Sources

Photography P12-13 colin bain / Alamy Stock Photo. P15 depositphotos.com / irstone. P20-21 © istockphoto.com / JoeDunckley.

Disclaimer 2016 CBRE

CBRE Limited confirms that information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt their accuracy, we have not verified them and make no guarantee, warranty or representation about them. It is your responsibility to confirm independently their accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.

© 2016 CBRE Ltd.

cbre hot 100 2016 winners in london’s residential market · nine elms point. cbre residential...

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