What’s next for Newham in East London?
Newham has become a magnet for regeneration which has boosted local property markets in the borough. But what does the future hold for housing in the former host borough of the 2012 London Olympics?
3 minutes to read
• House prices in Newham have risen around 30% over the past five years, outperforming London and the adjoining borough of Tower Hamlets.
• The number of people moving into Newham has increased by 24% between June 2015 and June 2019.
Wide scale regeneration, good connectivity and a new cultural scene have attracted new residents to Newham in recent years which, in turn, has underpinned local property markets.
Data from the ONS shows that the total population of the borough has risen rapidly, climbing from 310,460 in mid-2011 to 353,134 by mid- 2019, an increase of 14%.
This makes Newham one of the fastest growing London boroughs by population, only outpaced by Tower Hamlets, Camden, Westminster and Islington over that time frame.
Closer analysis shows that, in the 12 months to June 2019, more than a fifth (21%) of these movers were aged between 25 and 29, followed by those aged between 20 and 24 (20%).
Such growth is expected to continue, with the number of households in Newham expected to increase by 10.4% between 2018 and 2028, according to official figures. Households with two or more adults will represent the largest share at 39%, while households with children will represent 38%.
An influx of younger residents comes as the borough faces an undersupply of new housing. Developers built 2,678 homes in Newham during 2018/19, according to official figures. The Mayor has said this number needs to increase by more than 20% in order to meet new demand. The new draft London Plan, the Mayor’s key strategic document published in December 2019, suggests the borough of Newham will require 3,280 homes every year for a decade.
This undersupply, coupled with the area’s attractive new amenities and recent investment into local infrastructure, has supported house price growth. The average house price in Newham has climbed from £194,632 in January 2010 to £356,915 by April this year, a gain of 83%. Despite this growth, average house prices remain below the London average of £484,864.
The borough is home to major development sites including in Stratford and the Olympic Park; Custom House and Canning Town; and the Royal Docks, where the council is working closely with the GLA in London’s only Enterprise Zone. It is also home to the new East Bank district which is already drawing in high-profile names such as the Victoria & Albert Museum and BT Sport, and leading to a significant shift east in London’s cultural centre of gravity.
The borough also has access to five Crossrail stations and London City Airport, while the DLR is a key route into Canary Wharf and the City.
Knight Frank forecasts house prices in London will climb 13% between 2020 and 2024. Newham, with its connectivity to central London and beyond, relative affordability and access to green space, could outperform the London forecast as it is well placed to gain from the uplift in high-quality new development slated for the next five years, which in turn is likely to attract new amenities and residents.