Rotherhithe has been named the UK’s eighth most lucrative ‘property hotspot’ thanks to the area’s regeneration – most notably the £3.3 billion Canada Water scheme.
“Stunning views of the river”, “waterfront properties” and excellent transport links into central London were also cited as key factors in the Property Market-Index report.
But local residents often point out the hidden costs of regeneration which can see families priced out having lived in the area for generations.
Research by the Runnymede Trust found that Southwark’s housing stock decreased by 18,000 between 1994 and 2020 and that house prices rose by £900,000 between 2010 and 2016.
But Amanda Collinson, spokesperson for the Property Market-Index, the property value tracker that compiled the report, said “resurgent urban locations” were benefitting from “regeneration money” that is “hothousing some formerly rundown locations”.
The report said: “Property prices [in Rotherhithe] are at bargain levels versus those in neighbouring Docklands boroughs and buyers should see their investment grow well, while they enjoy all the benefits of a well-connected location.”
“Set on the peninsula of the south bank of the Thames, Rotherhithe seemed to have missed out on the great London Docklands boom, but it now could benefit from the £3.3 billion in development cash being spent in nearby Canada Water,” it added.
The Canada Water Masterplan, developed by British Land, is being approved in stages and, once completed, should deliver 3,000 new homes and 2.5 million sq ft of offices.
35 per cent of the homes will be affordable – either let at social rent or 80 per cent of market value – in line with Southwark’s planning policies.
Campaigners often claim 35 per cent is not enough to meet the demands of the housing crisis, with over 16,000 people on Southwark’s housing waiting list.
The report did say that one of Rotherhithe’s downsides was that its “social scene has some catching up to do compared with its neighbours”.
The full list of UK ‘property hotspots’:
- Margate, Kent
- Ramsgate, Kent
- Bolton
- Liverpool
- Reading
- Derby
- York
- Rotherhithe
- Aberdeen
- Burton, Staffordshire