eMoov

Northern line extension boosts Battersea house price growth



House price growth in Battersea has not only outstripped the borough of Wandsworth, but London as a whole, according to eMoov.

The online estate agent believes Battersea is an upcoming property hotspot as a result of the Northern line extension which is due to be completed in 2020.

The extension will include an additional stop at Nine Elms, an area undergoing extensive investment, with thousands of new homes planned for construction and a number of embassies relocating to the area.

The estate agent has found that in the year prior to the final approval of the Northern line extension, prices in Wandsworth increased by 20% annually, 4% more than Battersea.

However, since the extension was approved in November 2014, prices in Battersea have soared by 25%, 18% more than Wandsworth and 8% greater than London.

Should the current trends continue to 2020, the average sold price in Battersea would see property values exceed £1.1m.

“The extent of the regeneration and residential projects across the Nine Elms and Battersea area, along with the extension of the Northern line service, should breathe a great deal of life back into the area,” said Russell Quirk, CEO and founder of eMoov.

“In a cooling London market, it is one area that certainly looks set to buck the trend and the healthy price increases seen in Battersea should persist up to, and beyond, completion in 2020.”

Battersea is also set to benefit from the redevelopment of Battersea Power Station with technology company Apple planning to move into the development once it is completed in 2020.

“Battersea seems to be benefitting from its end of the line location on the extension,” added Russell.

“It would seem that the numerous structural surveys carried out along the path of underground extension in Nine Elms and the risk of ground disturbance that comes with such a large-scale tunnelling operation are deterring buyers in the area, for the moment that is.”

House prices in Nine Elms have fallen by 3% from November 2014 to now, but this decline has decreased from the 21% fall recorded between November 2013 to November 2014.

“Nine Elms is probably the only area of London that has also suffered from an oversupply of property,” Russell added.

“The extent of this residential construction process will also be causing price growth in the area to stall, but this negative growth is certainly on the reverse and prices should soon start to climb.”


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