London needs to build new homes in areas with excellent transport links and ameneties, but there aren’t many areas left that fit the bill. The answer for both developers and buyers is to look east, where several boroughs with exceptional transport links have the potential to deliver thousands of homes over the next few years.

City Fringe

Close to London’s finance and business centre, City Fringe is a sought-after residential area. There are currently 10 sites under construction delivering a total of 2,785 private units, including anticipated schemes such as Landmark Place by Barratt and 10 Trinity Square by Reignwood, due to complete between the first quarter of 2017 and the second quarter of 2018. With over 1,300 private units, London Dock by St George will be the largest scheme in the area. An additional seven sites have planning permission, with the potential to provide 574 new private homes.

Hackney Wick

Having seen little development in the past, Hackney Wick now has two developments under construction with a total of 130 private homes, expected to complete between late 2017 and 2018. This includes the Weston Homes scheme The Foundry, which will launch in spring 2017 and provide 91 private homes. There are an additional 11 schemes which have planning consents showing the long-term appeal for the area. The most significant consented scheme is Fish Island Village by Peabody (Neptune Wharf), providing over 500 private homes for rent and sale and 5,300 sqm of commercial space, with expected first completions in early 2018.

Stratford

The area continues to thrive post 2012 Olympic Games. There are currently nine schemes under construction, including phases of Chobham Farm, East Village and Chobham Manor due to complete in August 2016, summer 2018 and early 2017, respectively (1,095 new private homes). In April 2016, it was announced that Qatari Diar, Delancey and APG created a £1.4bn rental business, encompassing East Village, the former Olympic athletes’ village

Barking

Barking sits within the most affordable borough in London, with an average property price of £276,000. While there are 10 sites with planning permission in the town centre, only one is under construction, indicating that redefining this local area is a medium-term project. The redevelopment of the Gascoigne Estate (1,575 new homes, 669 of which will be private) is the most significant change occurring in the area, due to the scale of the project. Phase 1 (51 private homes) is underway and due to complete in 2019. The largest development in the area is Barking Riverside, potentially providing up to 10,800 new homes, 3,000 of which are earmarked for the rental market. Crucial to the success of the overall development is the new railway line and a new station which will vastly improve connectivity, but funding has not yet been secured.

Canary Wharf, London E14

Canary Wharf

Home to one of Europe’s major business and finance districts, Canary Wharf has been an epicentre for new development in London, with strong sales rates throughout 2015. There are currently 17 sites under construction with a total of over 6,800 private homes. This includes three phases of Wood Wharf, with the first residential phase due to complete in late 2019, and Maine Tower which is expected to complete the same year. Developers and house builders could also add supply to the rental and serviced accommodation markets, as an option to diversify and de-risk their exit routes across their delivery pipelines.

Royal Docks

Royal Docks and Canning Town have had high rates of off-plan sales over the past two years. ABP is set to start the first phase of its flagship development in early 2017. The wider development will stretch over 440,000 sqm – with 20 per cent dedicated to residential – and is expected to cost up to £1.7bn.There are currently nine sites under construction in this area, with a further seven with planning permission. One of the most notable schemes is Royal Albert Wharf by Notting Hill Housing (providing over 800 new homes). Phase 1 of the development – due to complete by the end of 2016 – will deliver 123 private and 73 rental homes.

Greenwich

Greenwich has seen strong sales rates over the past months, with delivery of new homes concentrated in both Greenwich town centre and Greenwich Peninsula. The town centre has six schemes under construction, providing 629 new private homes. Another three sites have planning permission (198 private homes). The Greenwich Peninsula development by Knight Dragon Developments, has permission for over 15,720 new homes, of which 1,889 are currently

under construction (completing between autumn 2016 and late 2018). Strong sales rates achieved over the last two years have primarily been driven by realistic pricing across a variety of product, as well as extensive placemaking and attractive amenities.

Further information

Read the full report: Savills Spotlight – East of City