The Deptford Sales Market
At present, demand for property in Deptford is stronger than ever. Despite being located within zone 2, property is remarkably cheaper than other south London hotspots such as Clapham, Brixton and Balham – despite some of these areas being within zone 3 – which appeals largely to first time buyers.
First time buyers make up a large portion of the market in SE8; in most cases they’ve been priced out of zone 1, and they look to zone 2 for places with good access to London but also the fundamentals of a first home. In Deptford it’s still possible to get a flat for under £400,000 – making it more affordable for those looking to get onto the property ladder without going too far away from central London.
Investors are also tapped into the area; Deptford provides brilliant investment opportunities with high rental yields if they were to buy to let. The prices within the area are being driven up by the aforementioned first time buyers creating more a demand; savvy investors are look to buy property here to fully benefit from the ripple effect.
Deptford has seen a lot of growth in the sales market in recent years; specifically 8.98% in the last three years. The area benefits from good transport links, despite being across the river, and provides those looking to commute with a swift access into the City.
It’s an area which people hadn’t previously considered; historically being a poorer area, many have missed a trick in investing several years ago when property prices continued to be significantly lower than the London average, and invested in more popular neighbouring areas such as Greenwich and Brockley. Many buyers bought several properties, due to lack of demand, but in the last few years this has significantly changed and those looking to buy in areas such as Greenwich have also begun considering Deptford, and surrounding areas such as New Cross as potential homes or investments.
The Deptford Rental Market
The Deptford Rental Market has always been buoyant but even more so the past five years.
Deptford has seen large developments creep up in recent years, and the coming years bring even bigger developments; but it isn’t hard to see why.
Deptford benefits from exceptional travel links with Deptford Bridge station and Deptford Bridge DLR station, local bus routes and even Greenwich and New Cross stations being within short walking distance resulting in making commuting for those who work in the City or Central London exceptionally easy.
The popular Deptford High Street offers an array of local shops; from delicatessens and café’s to supermarkets and restaurants. The recent refurbishment of Deptford BR Station and Deptford Market Yard furthers the appeal of this south east hotspot; these changes have bought a lot of attention to the area and continue to draw people in.
Despite the regeneration in Deptford, it remains a community affair with the tri-weekly Deptford Market continuing to run which many areas in London have now lost.
The rental market in Deptford has continued to remain steady throughout the recent economic trials and tribulations, which is beneficial for local landlords. With more development planned for Deptford, this continues to be a huge positive for local landlords.
The higher rental yields which can be seen in some new build developments, allows landlords with room to grow in their second hand properties.
We have seen a lot of ‘accident’ landlords over the past five years. Since the crash in 2007 a lot of people were forced to rent instead of sell their properties and are now reaping the benefits. With rentals in the area at an all-time high it is certainly a good area for any budding landlord to consider.
The recent political turbulence has added to the increase in rents; once again cementing that Deptford is an area that young, working professionals want to reside. Towards the last quarter of 2016 there was a substantial amount of recently with the result of Brexit rents have increased again proving that this is a good area where young working professionals want to be. Towards the last quarter of 2016 there was a lot of competition between tenants meaning landlords could afford to demand higher rental prices.
The start of 2017 has seen a quieter time compared with the last quarter of 2016. Rents are steadying and tenants are beginning to have more choice within the market.
If you have any queries regarding your property search in Deptford, please contact our office on:
T: 020 8692 0555