The latest research from leading online estate agent, eMoov.co.uk, has found that since the final approval of the Northern Line extension in November 2014, house price growth in Battersea has not only outstripped the borough of Wandsworth but London as a whole.
Battersea has been earmarked as an upcoming property hotspot with Apple’s planned move into the redeveloped Battersea Power Station in 2020 – the year the Northern Line extension is due for completion. The Northern Line extension will include a second additional stop at Nine Elms, an area also undergoing extensive investment with thousands of new homes planned for construction and a number of embassies relocating to the area from Kensington.
In addition, a third stop has been proposed that would link Clapham Junction station to the Northern line, connecting it to London Overground services and to trains heading beyond the boundaries of the capital.
In the year prior to the final approval of the Northern Line Extension prices in Wandsworth increased by 20% annually, 4% more than Battersea with Nine Elms seeing a drop of -21% in just one year.
Since the extension was approved in November 2014, prices in Battersea have soared by 25%, 18% more than the borough of Wandsworth and 8% more than the capital as a whole. Homeowners in Nine Elms have not been so lucky with prices falling by -3% in that time. However, the regeneration of the area seems to have stemmed the tide and this marginal decrease in a two and a half year span will be a lot easier to stomach then the annual fall of -21% between November 2013 to 2014.
Should the current market trends observed in the last three years replicate up until the planned operational phase of the extension in 2020, an increase of 25% in the the average sold price in Battersea would exceed £1.1m.
The extent of the regeneration and residential projects across the Nine Elms and Battersea area, along with the extension of the Northern Line service, is going to breathe a great deal of life back into the area. In a cooling London market, it is one area that certainly looks set to buck the trend and the healthy price increases seen in Battersea should persist up to, and beyond, completion in 2020.
Battersea certainly seems to be benefitting from its end of the line location on the extension. It would seem that the numerous structural surveys carried out along the path of underground extension in Nine Elms and the risk of ground subsidence that comes with such a large-scale tunneling operation are deterring buyers in the area, for the moment.
The extent of the residential construction process will also be causing price growth in the area to stall, but this negative growth is certainly on the reverse and prices should soon start to climb. With a lower average house price, Nine Elms is currently the best bet for buyers looking for a more affordable investment with a high chance of a quick return.Russell Quirk