The investment case for Thamesmead

Summary

We believe there is a compelling investment case for residential property in Thamesmead, London.

Three factors underpin the investment case for the area:

  • The £305m regeneration project and planned transformation of Thamesmead over the next 15 years. This is one of the country’s largest regeneration projects and ought to have a significant impact on long-term prospects.
  • The benefit of access to Crossrail stations at Woolwich and Abbey Wood in 2018. The decrease in journey times to central London is expected to have an impact on local GDP, which is a key driver of house prices.
  • Our Thamesmead properties sit at the heart of local regeneration plans and benefit from proximity to multiple transport links.

These points are discussed further below, or you can go directly to our property page by clicking here.

£305m regeneration of Thamesmead

In April 2014, the regeneration agency and housing trust Peabody took over much of the land in Thamesmead through acquisitions of regeneration agencies and development companies. Peabody’s 15-year, £225m regeneration plan for Thamesmead as a ‘garden suburb’ is currently underway. The plan is highly ambitious and includes proposals for new transport infrastructure, parks and the regeneration of a neglected wildlife reserve in the heart of Thamesmead.

In February 2015, Boris Johnson, Mayor of London, announced his backing of the Peabody Group project and is contributing an extra £80m towards the endeavour. The mayor’s backing comes with a simplified planning process and an accelerated construction schedule.

Further to that, in March 2015, Boris Johnson announced that TfL will go ahead with plans for a new Thames crossing at Thamesmead. This will mean that Thamesmead will be within a 37 minute commute of an additional 70,000 businesses and 570,000 jobs. Subject to securing funding and the necessary approvals, the river crossing is expected to open in 2025.

All in all, this is one of the largest redevelopment projects in the country and has the strong support of the Mayor of London. The project ought to have a major impact on local GDP, which is a driver of house price growth.

New Crossrail stations will increase local GDP

Crossrail is a new high-speed railway line crossing London, running from Reading in the West to Brentwood in the East, and is also Europe’s largest current infrastructure project. The line increases London’s train capacity by 10%.

JLL, in their report on Crossrail investment opportunities, forecast properties located 750m from Woolwich and Abbey Wood stations to experience +52% capital growth and +45% capital growth, respectively, over the next 5 years. Although our properties are over 750m from a Crossrail station, and therefore don’t meet the JLL report parameters, they should attain some benefit from their proximity to both stations.

Once completed, the journey from Woolwich Railway Station to the financial district in Canary Wharf would be reduced from 19 minutes to 8 minutes and the journey to Bond Street in the West End from 37 minutes to 22 minutes.

A new, bright and spacious two-level station will open in Abbey Wood in 2017 and when Crossrail arrives in 2018, it will add up to 12 extra trains an hour. The journey from Abbey Wood to Canary Wharf would be reduced from 31 minutes to 11 minutes and the journey to Bond Street from 44 minutes to 25 minutes.

Our properties are located at the heart of the local regeneration

The location of our properties, in between central Thamesmead, Plumstead, Woolwich and Abbey Wood allows them to benefit from the collective increase in local GDP of those places, as they change over time.

Furthermore, the area directly surrounding our properties will particularly benefit from the £305m regeneration project:

  • Planning permission has been granted for the redevelopment of Tripcock Point. The development will include 2,000 new homes, offices and a hotel.
  • A new park at Broadwater Dock, 10 minutes’ walk from our Kentlea Road property, will improve connections to the Thames and link together a wider network of green space.

It is worth noting that the area and our properties are very well-connected. Within 4 miles there are 12 different overground and underground stations, a Thames Riverboat stop and London City Airport.

 

Important Note

The value of your investment can go down as well as up. Gross Rent and Dividends may be lower than estimated. You may have to wait until the next five year anniversary of the property’s listing on the Property Partner platform for an exit event. See Key Risks for further information. Property Partner does not provide investment advice and any general information is provided to help you make your own informed decisions. If you are unsure whether an investment is suitable for you, you should contact a financial adviser for advice. This financial promotion is made by London House Exchange Limited trading as Property Partner™, which is authorised and regulated by the Financial Conduct Authority (firm reference number 613499).