We believe there is a compelling investment case for residential property in Plumstead, in the Royal Borough of Greenwich, London.

Three factors underpin the investment case for the area:

• The ongoing transformation of Plumstead and surrounding areas ought to have a significant impact on long-term prospects for the area
• The benefit of access to Crossrail stations at Woolwich and Abbey Wood in 2018. The decrease in journey times to central London is expected to have an impact on local GDP, which is a key driver of house prices and rental values
• Property prices in Plumstead are lower than surrounding areas. As residents in South-East London seek better value, and reduced travel times, Plumstead is well placed to benefit from capital growth

These points are discussed further below, or you can go directly to our properties in Plumstead by clicking here.

Plumstead and the surrounding areas are set to benefit from multiple regeneration projects, which ought to have a significant impact on the long-term prospects of the area.

The regeneration agency and housing trust, Peabody, have recently announced their plans for Plumstead and nearby Broadwater Dock, stating their intention to build “350 new homes plus shops, workspaces and community facilities by 2020; and a further 520 homes and new park by 2024…[working] with Greenwich to improve the public realm around Plumstead Station.”

In March 2015, Boris Johnson announced plans for two new Thames crossings in the nearby areas of Thamesmead and Belvedere. This will mean that Plumstead will be within a short commute of an additional 70,000 businesses and 570,000 jobs. Subject to funding and the necessary approvals, the river crossings are expected to open in 2025.

All in all, these projects ought to have a major impact on local GDP, which is a driver of house price growth.

Crossrail is a new high-speed railway line crossing London, running from Reading in the West to Brentwood in the East, and is also Europe’s largest current infrastructure project. The line increases London’s train capacity by 10%.

Plumstead will be served by Crossrail stations at Woolwich and Abbey Wood. JLL, in their report on Crossrail investment opportunities, forecast that properties located 750m from Woolwich and Abbey Wood stations will experience +52% capital growth and +45% capital growth, respectively, over the next 5 years. Although our properties are over 750m from a Crossrail station, and therefore do not meet the JLL report parameters, they should attain some benefit from its proximity to both stations. Our Plumstead properties are all within 2.5km of both Crossrail stations. And both stations are easily accessible by train from Plumstead station, which is close by.

Once Crossrail is completed, the journey from Woolwich Railway Station to the financial district in Canary Wharf will be reduced from 19 minutes to 8 minutes and the journey to Bond Street in the West End from 37 minutes to 22 minutes.

A new, bright and spacious two-level station will open in Abbey Wood in 2017 and when Crossrail arrives in 2018, it will add up to 12 extra trains an hour. The journey from Abbey Wood to Canary Wharf would be reduced from 31 minutes to 11 minutes and the journey to Bond Street from 44 minutes to 25 minutes.

The reduction in journey times is expected to have an impact on local GDP through improved connections to Canary Wharf, the City and central London.

House prices in Plumstead are lower than those in neighbouring areas. According to Rightmove, average house prices in Charlton, Shooters Hill and Woolwich range from £271,202- £324,218. This is in comparison to an average of only £256,581 in Plumstead.

Plumstead is therefore relatively well priced compared to neighbouring areas. In addition, the Crossrail stations due in Woolwich and Abbey Wood will be the only Crossrail stations in South-East London, further increasing the desirability of the area.

As residents in South-East London seek better value areas and access to Crossrail, demand for housing in Plumstead is likely to increase, driving house price growth.

Important Note

The value of your investment can go down as well as up. Gross Rent and Dividends may be lower than estimated. You may have to wait until the next five year anniversary of the property’s listing on the Property Partner platform for an exit event. See Key Risks for further information. Property Partner does not provide investment advice and any general information is provided to help you make your own informed decisions. If you are unsure whether an investment is suitable for you, you should contact a financial adviser for advice. Property Partner is the trading name of London House Exchange Limited, which is authorised and regulated by the Financial Conduct Authority (firm reference number 613499).