For the first time, demand is shifting from prime central London to prime outer London and this trend is set to continue. Reasons such as inflated property values, talk of an interest rate rise, stricter mortgage lending conditions, new taxation laws and political uncertainty have meant investors and owner occupiers alike are compromising on location in order to find better value for money and healthier returns.
One specific area of forecasted growth is Silicon Roundabout (Old Street Roundabout) where demand for housing is expected to rise strongly between now and 2021.
Historically, this corner of London has been seen very much as a financial district, however today, over 13,000 businesses in 11 different market sectors now call the City their home. This, alongside vastly improved retail offerings and future infrastructure improvements (Crossrail), have made the area a desirable place to live and as a result, has prompted waves of new development. The demographic is mainly young professionals in their twenties and thirties with robust salaries and the ability to afford substantial rents.
In 2010, the Mayor of London and the Government pledged resources and investment in a bid to create a hub of tech-entrepreneurialism that could rival Silicon Valley in the US. Google were among one of the prominent companies to name this part of town as its London headquarters and some of the biggest banks now sit side by side with concentrated pockets of start-ups.