The two key drivers of value in London are quality of place and travel time to central locations. The desire among London residents to live within easy reach of their workplace is balanced with the aspiration for high quality of life.

Demand for housing from central London employees is growing and supply is constrained in central locations. Places closest to central employment locations are therefore likely to see an uplift before more distant locations. Our analysis of the 2001 and 2011 Censuses shows that the locations that have undergone significant gentrification over the decade have tended to be on the edges of central London.

We have therefore constructed a model that allows us to assess how improvement in the quality of place or reduced travel time could result in a sustainable uplift in residential values. The model is most applicable outside established prime areas. It is also worth noting that travel time does need to be balanced against the frequency and cost of services. The model does not include other factors that affect residential value such as quality of retail, schools and leisure facilities.

It does, however, show the potential for value uplift. The darker the red areas, the greater the potential for regenerative development to unlock value. These areas are likely to suffer from barriers to value growth which might be removed by improvement in transport or high standard placemaking.

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Taken from
Spotlight: London Regeneration - Boosting housing supply beyond prime