Conveniently located between Vauxhall, Kennington and Lambeth North stations, the Kennington Triangle, SE11, is a significant part of London that looks set to benefit from rising property values in the future. Bordered by three large scale regeneration projects in Elephant and Castle, Nine Elms and the South Bank, and situated a mere 15 minute walk from the Houses of Parliament and 20 minutes from Covent Garden, it is regarded as one of the most undervalued, yet easily accessible parts of London.
Increased levels of demand for homes and a relative lack of new supply are fuelling significant price growth, and in the last 12 months, the average price of flats sold in the Kennington Triangle have increased by 14.4% according the Land Registry. But the increases aren’t a new thing, and while in 2003 the average flat sold for just over £200,000, today that average is closer to £369,000, representing an increase of 84% in a decade. Houses meanwhile have seen similar rises with a 1,500sq ft Georgian house on Cleaver Square achieving £698,500 ten years ago and £1.35million in 2013.
While prices have been rising at a steady rate, the entry point for buyers in the Kennington Triangle is significantly lower than north of the Thames. One bedroom flats can be purchased from £250,000 with low rise ex-local authority properties proving popular with both first time buyers and investors who enjoy more favourable yields than in pricier central London postcodes. While the average value of property in SE11 currently stands at £368,863 (lower than the Londonwide average of £396,646), in the nearby Southbank average prices are significantly higher at £542,385 and over the bridge in Westminster, they rise further to an average value of £786,874 according to the Land Registry.
A budget of £500,000 will typically get a purchaser 881sqft of living space in SE11, but only 515sqft in Westminster, which explains why more and more buyers are increasingly looking South of the river in search of obtaining a bit more for their money. Interestingly, the Kennington Triangle has a strong local employment market, and the 2011 Census figures reveal that the working day population rises by 24%. Those that work out of the area however are spoilt for choice when it comes to transport links and professionals working in the City or West End will typically spend less than eight minutes on the underground. In addition, local residents benefit from a 90% reduction on the congestion charge.
New build activity in the surrounding areas has been soaring and as a result, Kennington itself is now starting to see an increase in developers keen to capitalise on its increase in popularity. In our next blog on the area, we'll explore the growth in the new build market around the Kennington Triangle.