House prices rise 3.6% in UK’s regeneration zones

Data compiled by CBRE shows that property located close to regeneration regions in the UK witnessed a price increase of an average 3.6% in 2019.

CBRE analysed the price of property situated at 11 long-term regeneration areas in London. Most of these projects began between 2006 and 2010 and are all still in progress.

These projects ranged from the rejuvenation of existing areas like London’s Southbank, to the development of new communities, such is the one at Olympic Park in Stratford. The regeneration projects that featured in the research were all “Opportunity Areas” that have been designated by the Greater London Authority as large-scale developments to provide new jobs and homes.

Such developments bring much needed infrastructure to the areas, including connectivity and transport and links, transforming previous previously derelict or inhabitable land into desirable places to live.

Consequently, demand for property built in regeneration areas has been on the increase, as the house price data shows.

As Jennet Siebrits, UK head of residential research at CBRE, comments:

“Regeneration can greatly improve an area and the quality of life for its residents. CBRE studied the effect of regeneration on local property markets in London and found that house prices within a 750-metre radius of a regeneration zone grow faster than the wider market, by up to 3.6% per annum on average.”

James Bearryman, Senior Director at CBRE Residential, reiterated the demand for property located in regenerated areas.

“Regeneration is about much more than new housing; it is about creating spaces for people to live and work in happily. Alongside new homes, you can expect to see improved parks and public spaces and revived retail, leisure and work centres. That’s why the benefits are felt more widely than just by those living in the immediate regeneration zone, as our study of the impact on house prices shows,” said Bearryman.

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