New data from fintech company Proportunity shows London’s best spots to buy property if we slide into a recession. After crunching the data, they found that London hipster hotspots such as Hackney and Haringey and Newham will be resilient to any potential Brexit-induced house price dip.
Proportunity offers Help to Buy-style loans for first-time buyers – available to all properties, not just new builds and their data platform can assess whether a property is overvalued or undervalued, helping customers find hidden gems.
Outer London boroughs such as Bexley, Havering and Richmond were most vulnerable. Instead, first-time buyers in London should look to Camden, Hackney, Haringey, Newham, and Tower Hamlets for properties likely to withstand any Brexit-induced price dip.
The top five factors behind poor price performance are:
- Below average percentage of new builds sold
- Large millennial population
- Lower retired and baby boomer population
- Proximity to popular train stations
- Higher than average flat prices
Using these five metrics, along with other indicators such as transactions, crime rates, average number of rooms and the amount of residential floor space within a borough, Proportunity created a price resiliency index to help first-time buyers find recession-proof pads in the capital.
The findings reveal that Tower Hamlets is set to perform best out all 33 boroughs in any future housing market slowdown.
Camden, famous for its markets and music venues, with a budding millennial population and excellent transport links, was second.
Finally, the hipster triangle of Hackney, Newham, Haringey, with large young populations and relatively low number of new build homes. The five most vulnerable boroughs were in outer London, with older populations, and had a high number of transactions.
Flat prices in family-friendly Bromley was most vulnerable in a recession, then Havering, leafy Richmond-upon-Thames and Bexley and Sutton.
Vadim Toader, CEO, said, “Buying a property is the biggest investment decision most of us make, it is vital to do it in the most informed way. Big data isn’t a crystal ball. But globally, property markets respond in similar ways to population, age, crime, accessibility and affordability issues. Now we have the tools to process these shifts, predict the reaction, and get that information to those who need it.”