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Residential update
UK Residential Research | January 2018
South East London has benefitted from a significant facelift in recent years. A number of regeneration
projects, including the redevelopment of ex-council estates, has not only transformed the local area,
but has attracted in other developers. More affordable pricing compared with many other locations in
London has also played its part. The prospects for South East London are bright, with plenty of residential
developments raising the bar even further whilst also providing a more diverse choice for residents.
Regeneration catalyst Pricing attraction Facelift boosts outlook
South East London is a hive of residential Pricing has been critical in the residential The outlook for South East London is
development activity. Almost 5,000 revolution in South East London. also bright.
new private residential units are under
Indeed pricing is so competitive relative While several of the major regeneration
construction. There are also over 29,000
to many other parts of the capital, projects are completed or nearly
private units in the planning pipeline or
especially compared with north of the river, completed there are still others to come.
unbuilt in existing developments, making
it has meant that the residential product For example, Convoys Wharf has the
it one of London’s most active residential
developed has appealed to both residents potential to deliver around 3,500 homes
development regions.
within the area as well as people from and British Land plan to develop a similar
Large regeneration projects are playing further afield. number at Canada Water.
a key role in the delivery of much needed
The competitively-priced Lewisham is But given the facelift that has already
housing but are also vital in the uprating
a prime example of where people have taken place and the enhanced perception
and gentrification of many parts of
moved within South East London to a more of South East London as a desirable and
South East London. Many of these are
affordable option. appealing place to live, coupled with the
still ongoing, with a few yet to get off the
price advantage and the excellent transport
drawing board. The lower price points have grabbed the
links, more and more developers are
attention of developers too. Both the
The most significant have been the looking to enter the fray.
potential to develop product for a wider
redevelopment of ex-council estates such
audience as well as to reap the benefits This revitalised perception is exemplified
as the Heygate Estate in Elephant & Castle,
of outperforming price growth as a by the appetite of Build to Rent (BTR)
now being replaced by Elephant Park, and
result of scheme-specific and broader- operators. The largest operator in the area
the Ferrier Estate in Blackheath which is
area regeneration impacts have been will be Get Living London. It already has one
being redeveloped as Kidbrooke Village.
particularly appealing. scheme operational at Elephant & Castle
Other large-scale and non-council and will have more units once the Elephant
The real game changer for South East
estate redevelopment has also taken & Castle Shopping Centre is redeveloped.
London has been the two wave evolution -
place such as on the Greenwich Peninsula,
initially the notable regeneration projects But Grosvenor, Realstar, Essential Living,
at Bermondsey Spa and at Canada Water,
improved and lifted the area which then Fizzy Living, Notting Hill Housing, Peabody
to name but a few.
enticed in a greater volume and variety and L&Q will also have BTR schemes
But although these large redevelopments of private developers. Together, all of this operational within the next few years,
have been the cornerstone of the development activity has led to a vastly reaffirming the higher profile and altered
residential revitalisation many other different and rejuvenated South East perception of South East London.
developments are contributing to the London compared to a decade ago.
ongoing change.
South East London
Greenwich & Deptford Blackheath Lewisham
With the Cutty Sark, the National Maritime Blackheath has an established, mature Lewisham has benefitted from being a
Museum, the Royal Observatory, Greenwich and traditional housing market with very well-connected and affordable South East
Park and the River Thames as visitor icons, few new developments in its core area. London destination in recent years as
and with the 2012 Olympics boosting the On the outskirts, however, Berkeley Homes stretched affordability across many parts
area’s profile, Greenwich and Deptford have is transforming the old Ferrier Estate into of London force prospective home buyers
become even more popular residential KIdbrooke Village, a 4,000 home, and renters to look at viable alternatives.
locations over the past five years. £1bn regeneration project.
Lewisham is also fortunate to possess
More than 3,800 new residential units have The heart and mainstay of Blackheath is several attractive development sites. And
been completed in the Greenwich and adorned with Edwardian and Victorian developers have been early to the party
Deptford areas during this time. Thames terraced, semi-detached and a liberal with a number of sizeable residential
frontage has been a key draw for both sprinkling of detached houses that combine schemes already completed and several
developers and purchasers, with over to make Blackheath a leafy London enclave more on the way.
1,650 units in riverside schemes. within touching distance of Central London.
An early pioneering scheme was St James’
The largest schemes in recent years have Detached houses are typically between £1m Silkworks, while notable recent schemes
been Barratt London’s Greenland Place and and £3m with two bedroom terraced houses include Barratt London’s 602 private unit
Berkeley Homes’ element of Marine Wharf. usually in the £700,000 to £900,000 range. Renaissance SE13 and L&Q’s Thurston Point
which included 238 BTR units.
The building boom in the locale is not The Blackheath lettings market is also
over yet. There are several schemes under dominated by older style properties. Indeed, Lewisham is one of the forerunners
construction, amounting to almost 1,350 Turnover is generally lower than in other, in the BTR revolution. As well as the units at
units. There are two schemes with more regenerating parts of South East London Thurston Point, there are a further 68 BTR
than 900 private units; Barratt’s Enderby as tenants tend to stay in the area or in the units at each of the two phases of Muse’s
Wharf and Lend Lease’s Timberyard, same home for longer periods of time. Lewisham Gateway scheme which will be
both of which have some units under run by Fizzy Living.
Flats are hard to come by as they are
construction. There are also more than 200
typically only in converted houses. Significantly too, there are more than 1,350
units underway at London & Regional’s River
Three bedroom terraced houses can private units across five schemes in the
Gardens and Anthology’s Deptford Foundry.
command upwards of £2,500 pcm while planning pipeline in Lewisham (see map).
Looking forward the development pipeline detached homes are typically in excess
Lewisham’s connectivity to Central London
is somewhat uncertain. In aggregate of £3,000 pcm.
and to Canary Wharf via the DLR are
there are around 3,500 private units in the
particularly appealing to residents and the
planning pipeline, but almost 3,000 of these
offering could improve further when the
are at Cheung Kong Holdings Limited’s
Bakerloo Line Extension begins running,
Convoys Wharf where the huge riverside
although this will not be before 2028.
site has been dormant for several years.
Without this there is a relatively sparse Typical sales pricing in Lewisham is more
pipeline of 540 units in five other schemes. affordable than many neighbouring
locations, averaging around £625 psf for
Pricing can vary quite markedly in these
new build property while rents for a new
areas, largely driven by proximity to
one bedroom flat average £1,300 pcm but
riverside views. On the river pricing
can be obtained for £1,200 pcm.
can reach £800 psf while away from
the river £700 psf is more typical.
The rental market in Greenwich and
Deptford is very active. Close proximity
to Central London and to Canary Wharf
in particular makes this a popular rental
choice. The market is dominated by
individual private landlords but two new BTR
schemes are set to come to market during
the second half of 2018; Essential Living’s
Creekside Wharf and L&Q’s Faircharm
Trading Estate development.
Rents across Greenwich and Deptford are
typically in the order of £1,400 to £1,600
pcm for a one bedroom flat but can rise to
circa £1,700 pcm closer to the river.
Greenwich & Deptford
£700 £1,500 1,659 650
psf pcm
Average new build Average new build rents Units under Units in
pricing (£psf) (£pcm, one bedroom flat) construction* planning pipeline**
Q4 2017 same for all instances Q3 2017 Q3 2017
Q4 2017
*includes 314 BTR units, **includes unbuilt units in existing schemes
Source: JLL
Blackheath
£650 £1,350 679 2,762
psf pcm
Average new build Average new build rents Units under Units in
pricing (£psf) (£pcm, one bedroom flat) construction* planning pipeline**
Q4 2017 Q4 2017 Q3 2017 Q3 2017
*0 BTR units, **includes unbuilt units in existing schemes
Source: JLL
Lewisham
£625 £1,300 241 1,954
psf pcm
Average new build Average new build rents Units under Units in
pricing (£psf) (£pcm, one bedroom flat) construction* planning pipeline**
Q4 2017 Q4 2017 Q3 2017 Q3 2017
*includes 115 BTR units, **includes unbuilt units in existing schemes
Source: JLLSouth East London
Elephant & Castle Canada Water & Surrey Quays
Arguably most famous as the birthplace Large scale regeneration projects dominate “South East London has
of Charlie Chaplin, Elephant & Castle is the development landscape in Canada Water
in the throes of a huge regeneration and and Surrey Quays but there are a number of plenty to offer residents and
gentrification process. other developments underway in the area. there is a wonderful mix of
The area has progressed considerably since Once completed, all the development old and new. Greenwich and
the last elements of the Heygate Estate will provide an important, new, rejuvenated Blackheath are extremely
were demolished in 2014. and regenerated residential and
social destination. well established markets
The transformation of the area really began
when Brookfield Multiplex completed the Barratt London completed more than 600
with many families living in
408 unit (310 private) Strata development, private units in its Maple Quays project these areas and surrounding
famous for its three wind turbines at the top in 2013, which were sites A and B in the postcodes for generations,
of the tower which make it instantaneously Canada Water masterplan. Barratt London
stand out in London’s skyline. also completed 161 private units at while Elephant & Castle,
Lend Lease won the race to redevelop
Redwood Park in 2015. Lewisham, Canada Water,
the Heygate Estate, replacing it with Sellar Developments and Notting Hill Surrey Quays and North
Elephant Park. It has completed more Housing are now on site at sites C and D of Greenwich offer
than 300 private units in three phases of the Canada Water masterplan. In all 799
the redevelopment while almost 700 units private units will be developed, 346 of which
newer communities.
are under construction. In all the master will be BTR units operated by Notting Hill.
consent is just shy of 2,000 private units. Key to the success of
In addition to these, L&Q has 277 private
Importantly, the regeneration of the units under construction at Quebec South East London are the
Heygate Estate has been the catalyst for Quarter, 42 units of which will be retained numerous open spaces.
other developments. Lend Lease itself has as BTR units. The only other developer
also built the 284 unit One The Elephant active in the area is London Square which
And many of the successful
scheme, the second largest completed has 75 private units on site. developers are listening to
development behind Strata.
Prices and rents are notably lower here in the needs of residents by
A notable 1,360 units within eight comparison with Elephant & Castle, adding including leafy communal
schemes are under construction, to the appeal of this evolving location.
three of which are part of Elephant Park. Pricing can get as high as £850 psf while
parks and leisure facilities
The largest other development is rents for a one bedroom flat can range within their schemes.
Oakmayne’s Two Fifty One scheme which from £1,400 pcm to £1,750 pcm.
has 270 private units where completions
Looking forward, British Land will be the The homely nature of the
will run during the first half of 2018.
principal deliverer of residential units. It area has also helped to
The uprating of Elephant & Castle is bought the main Canada Water and Leisure
attract an eclectic mix of
evidenced by the surge in pricing. Back Centre sites in 2016. Opinion is being sought
in 2010-2011 pricing was typically around for circa 3,500 units (all tenures) on the people from all walks
£750-800 psf but now many of the schemes main site while there is an existing planning of life where, quite rarely
are averaging closer to £975 psf. permission in place for 509 units at the
Leisure Centre.
for London, residents get to
Elephant & Castle is also developing into a know and look out for their
key rental location. As well as the numerous
apartments privately let in recent new Rest of South East London neighbours – a real selling
schemes, Get Living London has its 373 unit As well as the key hotspots of new point in today’s world.”
Elephant & Castle 1 scheme while Realstar development in South East London already
completed on its 279 unit UNCLE Elephant covered above, the other main locale for
& Castle scheme in Q4 2017, a scheme new development is in North Greenwich
which includes a gym and sky lounge where Knight Dragon, Countryside and
among its amenities. Taylor Wimpey are active in the significant South East London Residential
regeneration of the Peninsula area.
Rental levels have increased notably
as new development has emerged. Bermondsey is another area which has
A typical one bedroom apartment in a improved in the past five years. Significant
new development is now commanding development at Bermondsey Spa has
in the order of £1,850 pcm. created a far more appealing environment
and although development activity has
slowed more recently, Grosvenor is now
looking to develop circa 1,100 BTR units at
the Biscuit Factory (see map).Elephant & Castle
£975 £1,850 1,637 3,644
psf pcm
Average new build Average new build rents Units under Units in
pricing (£psf) (£pcm, one bedroom flat) construction* planning pipeline**
Q4 2017 Q4 2017 Q3 2017 Q3 2017
*includes 278 BTR units, **includes unbuilt units in existing schemes
Source: JLL
Canada Water & Surrey Quays
£850 £1,550 448 1,000
psf pcm
Average new build Average new build rents Units under Units in
pricing (£psf) (£pcm, one bedroom flat) construction* planning pipeline**
Q4 2017 Q4 2017 Q3 2017 Q3 2017
*includes 234 BTR units, **includes unbuilt units in existing schemes
Source: JLL
UNCLE Elephant & CastleSouth East London
St. Katherine’s
Wapping Canary Wharf
The Shard
Southwark The O2
33
Rd
Newington
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Thamer Barrier
22
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Park
16 1
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35 13
15 Abbey
St
9
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Isle of Dogs
21 23
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28 3 24 34 4
Wa
Southwark
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12 26
Ma
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ela
Park
Bu
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Rodn Wa gsb
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17
Rd y y’s
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St james’s Rd
Lynto y
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Bl
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10 al
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20 8 l So
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18
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19
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32
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11
ba
St
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Al
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Verney Rd
Merr
Ap
pro
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Burgess Park
27 14 Cutty Sark
Wells Wa
d
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Alba
Rd
Park
A200
National Maritime
y
San
St
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08
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ay
B2
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lW
Ed
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Pec
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Com
Peck
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Cro
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Rd ercial
Way s Royal Observatory Vandbrugh
om
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Elmin Comm
Greenwich Park
Hill S
sH
St
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New Cr
S
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t
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ich
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Camberwell Peckham
Gre
Erlang
Walle
Blackheath Hill
5 Blackheath
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er Rd
18
Cam
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B2
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Braya d Rd
Pon
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30
Ash nts
Mou
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B2142 A2
0 Kidbroke
B2142
29 31
Nunhead
6
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Blackheat
Ivyd
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25
d
Lee Te
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Belmont Hill
Og
Rd
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lwic Nunhead Cemetery
Wic
ica
Pe
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Ar
ha
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Ry
e Hilly Fields
Peckham Rye Park 2
d
B218
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Ad
Park ela
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orb
Av
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St N
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Herne Hill East Dulwich
isha
Lew
Part comp, part U/C, for sale Under construction / complete; for sale / for rent Permission, not launched
Quebec Quarter
Source: JLL, MoliorSouth East London
Map ref Scheme Developer Private units Status
1 Greenwich Peninsula Knight Dragon 9,750 Part comp, part U/C, for sale
2 Kidbrooke Village Berkeley Homes 4,177 Part comp, part U/C, for sale
3 Elephant Park Lend Lease 1,885 Part comp, part U/C, for sale
4 Greenwich Millenium Village Countryside, Taylor Wimpey 1,397 Part comp, part U/C, for sale
5 Central Park Peabody 649 Part comp, part U/C, for sale, some BTR
6 Lewisham Gateway Muse Developments 640 Part comp, part U/C, for sale, some BTR
7 Enderby Wharf Barratt London 950 Under construction, for sale
8 The Timberyard Lend Lease 943 Under construction, for sale
9 Canada Water – sites C&E Sellar, Notting Hill Housing 799 Under construction, for sale, some BTR
10 The River Gardens London & Regional 567 Under construction, for sale
11 Greenwich Square Hadley / Mace 318 Under construction, for sale
12 UNCLE Elephant & Castle Realstar 279 Complete , BTR
13 Quebec Quarter L&Q 277 Under construction, for sale, some BTR
14 Deptford Foundry Anthology 276 Under construction, for sale
15 Two Fifty One Oakmayne, South Central Mgt 270 Under construction, for sale
16 Blackfriars Circus Barratt London 245 Under construction, for sale
17 Precision U + I, Weston Homes 232 Under construction, for sale
18 Convoys Wharf Cheung Kong Holdings Ltd 2,975 Permission, not launched
19 New Bermondsey Renewal 2,135 Permission, not launched
20 Aylesbury Estate Notting Hill Housing 1,349 Permission, not launched
21 Skipton House London & Regional 408 Permission, not launched
22 Chambers Wharf St James 407 Permission, not launched
23 Canada Water Leisure Site British Land 382 Permission, not launched
24 London Square Bermondsey London Square 271 Permission, not launched
25 Lewisham / Citibank House Joseph Homes 237 Permission, not launched
26 VIP Trading / Industrial Estates Rockwell Properties 975 Application, not launched
27 Malt Street Development Berkeley Homes 840 Application, not launched
28 E&C Shopping Centre Delancey, Get Living London 637 Application, not launched, BTR
29 Lewisham Retail Park Legal & General 440 Application, not launched
30 Tesco Overflow Car Park Meyer Homes 323 Application, not launched
31 Lewisham Carpetright Threadneedle Investments 242 Application, not launched
32 40 Victoria Way Fairview New Homes 233 Application, not launched
33 Southwark Fire Station Hadston 205 Application, not launched
34 The Biscuit Factory Grosvenor c1,100 Opinion sought, some BTR
35 Canada Water British Land c2,500 Opinion sought
Source: JLL, Molior. Data correct as at December 2017. Schemes of 200 or more private units.The profile of South East London has The area is still more affordable than most Road, to stations at New Cross Gate and
improved significantly in recent years but the parts of London but the gap is beginning to Lewisham. It could be operational by 2028.
area is only part-way along its rejuvenation. close as Londoners seek value for money
But even without this additional boost,
and higher growth potential locations.
Regeneration projects have changed the we expect South East London to prosper
streetscape and perception of certain Transport communications have been over the next 5-10 years. The price
locations and have also made the area more strong for many years but could be advantage relative to many other parts
appealing to a wider variety of developers. enhanced further if the Bakerloo Line of London is still to fully play out with the
Extension is given the go ahead. attention of developers, amenity providers
All of this new development has
The extension is due to run from and residents all set to improve the offer
transformed South East London into a
Elephant & Castle, down the Old Kent and appeal of South East London in future.
viable residential location of choice.
House price growth forecasts (% pa) 2018 2019 2020 2021 2022 2018-22
South East London 0 1 2½ 3½ 4½ 12
Central London Developments 0 ½ 2 3 4 10
Greater London 0 1½ 2 3½ 4 11
Rental growth forecasts (% pa) 2018 2019 2020 2021 2022 2018-22
South East London 1 2 2½ 2½ 2½ 11
Central London Developments 0 1½ 2 2½ 2½ 9
Greater London 1½ 2 2 2½ 2½ 11
Source: JLL
With over 350 professionals operating from a comprehensive network of This is our New Residential Thinking.
UK regional offices, the Residential team at JLL is the most comprehensive,
Join the discussion on twitter @JLLUKResi
full service advisor in the market.
Neil Chegwidden Adam Challis Graham Lawes Yasmin Forrester Matthew Saville
Residential Research Residential Research South East Sales South East Lettings New Home Sales
neil.chegwidden@eu.jll.com adam.challis@eu.jll.com graham.lawes@eu.jll.com yasmin.forrester@eu.jll.com matthew.saville@eu.jll.com
+44 (0)20 7087 5507 +44 (0)20 7399 5324 +44 (0)208 104 1116 +44 (0) 208 463 6741 +44 (0)20 7399 5972
jll.co.uk/residential
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