The first major expansion of the tube since the nineties is now in place with the extended track which connects the two new housing estates, Battersea Power Station and Nine Elms, via two step-free stations of the same names, with the existing line at Kennington. Initially, the new service will run six trains an hour at peak times.
This will of course have an impact on the property market and these are the effects to expect.
Property Prices
House prices around Nine Elms and Battersea Power Station are forecast to rise by 25 per cent over the next five years following the opening of the Northern Line extension.
The promise of regeneration via a 14-acre linear park and shopping centre will propel house price inflation in that area higher and faster than others which have previously benefitted from a tube or train line extension, according to experts.
It also now happens to be a zone one area!
Billions of pounds of investment have been pumped into the area in recent years, including through the redevelopment of Battersea Power Station for residential and business use, and the building of the new US embassy in Nine Elms.
Forecasts by the property group JLL show house prices in the Thames-side development increasing by three per cent by the end of this year. The rate of increase will gather pace and rise by 4.5 per cent next year and peak at an annual rate of 5.5 per cent in 2023 – just ahead of the average annual house price growth for London.
Rent
Rents are also expected to rise: nudging up one per cent this year, before increasing by a further 2.5 per cent in 2022 and 3.5 per cent in 2023 and 2024.
Analysis by Savills also supports the case for rapid price growth. The agent predicts that the increase in values and rents should be more dramatic in Nine Elms than in Woolwich (after the DLR extension).
New Property Investment Opportunities
These could be brilliant areas to invest in, especially as Nine Elms could adopt the model of a 15 minute city where people can access all they need and want within a 15-minute walk or cycle and thus is likely to have a lot of appeal.
Once completed Nine Elms will deliver 1,400 homes with 298 of them in No.8, on top of podium gardens, with a wellbeing suite, sky lounge (on floor 39), a karaoke room and private dining. Prices range from £997,500 to £4,660,000. These features have been more in demand since the pandemic.
There are alsp apartments available in Battersea Power Station itself for £865,000 so buyers must look to the lower profile projects for more realistic prices. The Prince of Wales Drive has one-bedroom shared ownership homes available via Rightmove for £150,000 for a 25 per cent stake, with car club membership.
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