Prized patch: protecting London property investment in the race for space

Prized patch: protecting London property investment in the race for space

Our capital city is continually changing with cranes a seemingly permanent feature on the moving skyline. Paul Addison, Managing Director of DevAssist, asks, “How can home buyers and investors guard against unwanted development or disruption that could affect their investment?”

The stakes are high when it comes to property investment, especially in London, but so is the scale of new building schemes as land in the right place get scarcer. As the population rises there is a finite supply for that prime view or access to transport networks. So once your client has invested seemingly eye-watering sums to secure their space, what are the guarantees that the view or harmony they want won’t be torn asunder over the coming years?

Well, none anymore. Purchases in London run double the risk of a nearby development affecting the value of their investment compared to the national average.

Over development damaging an area’s character

In Southwark, the Shard effect is pushing out in all directions. Barratt Developments plans to demolish Erlang House and Hill House and build 336 new homes in a scheme which includes a 27-storey tower.

Local residents have been up in arms in opposition to the developer’s plans and the impact of Southwark Council’s planning policies on the built environment, quality of life and the mixed nature of the local community.

The proposed tower block would considerably dwarf the surrounding Georgian and Victorian structures and all-but remove the purpose of an obelisk, originally constructed in 1771 as a focus for St Georges Circus, and a distinguishable feature when aiming for the area.

The fears are that there will be over development to satisfy developers’ needs to maximise square footage. There could also be a loss of value for the heritage and conservation properties that have been much sought after and where high premiums have already been paid.

Over in Greenwich at Lovells Wharf, successive planning application amendments have driven up the number of flats in the development from 667 to 913 and building heights from 10 to 13 storeys. Views of the river and the character of the Greenwich riverside have been transformed and parts of the Thames River Path shut for years during the disruption.

Imagine the conversation with your client if they had ploughed their life savings into that riverside apartment only to be faced with years of noise and chaos all around them. Well, this is the prospect for owners in Chambers Wharf, again in Southwark. The Thames Water Super Sewer intersection is planned to go directly underneath the site with a projected 7 year construction timeline affecting 150 directly adjacent flats with hundreds of HGV and river barge movements to excavate the soil.

After the main construction St James, part of Berkeley Group, will build 600 residential flats taking a further three years. Chambers Wharf will, in effect, be a construction site from 2016 – 2026. The reward for ten years of disruption: the loss of river views!

The key message for clients is that they (and their conveyancer) need to obtain a realistic price of a property’s market value – the ‘open market’ value, taking into account anything that might increase or decrease the value of the property. The loss of water views along the Thames, as schemes are crammed in, could be as much as 25%, according to Charles Chatterji, surveyor and RICS valuer. That’s a hit of anything upwards of £100-300,000 based on typical values of property at, or near, the riverside today.

Can this be avoided? Yes, of course it can, but many solicitors still fail to appreciate the value of interpreted planning search information that is readily available. STL have teamed up with DevAssist to offer DevLondon to provide a unique 2 stage professional assessment of the planning proposals in the vicinity of your client’s property and the potential risk to value. Existing council planning information and basic planning searches are no longer sufficient protection for the needs of London’s unique property market – arm yourself for the future today.

Next steps

For more information on DevAssess or any of the other interpreted planning and development risk reports from DevAssist, call us on 0800 318611 or email info@stlgroup.co.uk.

This article was submitted to be published by STL Group as part of their advertising agreement with Today’s Conveyancer. The views expressed in this article are those of the submitter and not those of Today’s Conveyancer.

STL Group

STL Group is the largest independent property search company in England and Wales. We have been meeting the needs of legal, conveyancing and other property professionals for nearly 40 years, earning a solid and enviable reputation for high quality, fast and reliable service. As a totally independent search provider, we believe in:

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