Everyone wants to live in one of the coolest parts of the capital – but all too often, by the time an area is officially hip, the property prices have already gone through the roof. First it was Notting Hill, then Islington, and Hoxton and Shoreditch in Hackney – a wave of transformation turning previously unappealing sectors of London into the best places to live in the city.

Shoreditch, a working class area in the 1970s that became a buzzing haven for artists, musicians, creatives and students in the 1990s, before maturing into a quality neighbourhood of fine dining, fashionable bars and boutiques in the 2020s, had a transformation that was so spectacular that it even coined the phrase “Shoreditchification” to describe the process. In the 1990s, a semi-detached property fetched £288,000.[1] If you wanted to move to this part of town now, the average property price is a cool £693,870.

But what if you could identify the next Shoreditch before it became trendy? Buying residential property in London is always a good investment – but the key to making a truly great investment, according to Barratt London, is to buy in an up-and-coming area while it is still at the earliest stages of its transformation – somewhere like Bermondsey, for example, where the average property price is just £520,741. The developer is currently creating 254 new apartments at Bermondsey Heights, on the edge of what looks set to become one of the coolest new areas of London.

“Areas such as Bermondsey in SE15 that are in the early stages of regeneration offer the greatest opportunities for capital appreciation, as homes in regeneration areas typically increase in value faster than other parts of the city,” says Yolanda Jacob, Sales & Marketing Director of Barratt East London. “Bermondsey’s regeneration story is one that has already begun – and further projected investment into the district only bolsters its future success.”

Bermondsey Heights, which includes one-, two- and three-bedroom apartments for private sale, all with either a balcony or winter garden, is being sold off-plan, with the first homes due to complete in 2025 – but around half the properties are already sold. “Buying off-plan provides the chance for buyers to lock in today’s competitive prices – a bonus for first time buyers who then have time to save towards their moving costs, and for investors who will benefit from increased rents and capital growth when the homes are complete,” says Yolanda Jacob.

“It’s a compelling proposition in terms of pricing – statistics from JLL show we’re about 19% lower per square foot compared with other Zone 2 developments across the capital. That’s been a huge draw for people whether they’re buying for investment or to live in because they can see lots coming here and that the infrastructure is going to improve.”

“Our current projections show rental yields sitting at 6.4%, far higher than the London average of 4.93%. Furthermore, Bermondsey’s house prices remain resilient with prices increasing by 3% in the last six months – yet crucially, homes in Bermondsey are currently at a 23% discount compared to Greater London.”

What makes Bermondsey such a sure bet to be the next Shoreditch? Well, the signs are all there – and Barratt London has a proven track record of identifying under-appreciated areas.

Transport – one of the key factors in Shoreditch’s renaissance was The East London Line Extension which brought the London Overground into the area, with a new station at Shoreditch High Street providing links to the whole of London. In the same way, the Overground is being extended into the New Bermondsey regeneration area, with a brand new station called Surrey Canal having recently secured additional funding along with new bus and cycle routes. When delivered the new station will be a stone’s throw from Bermondsey Heights.

Arts and culture – Shoreditch, once home of Banksy, became known for its street art, and galleries and music venues sprung up across the area, including the superb contemporary Whitechapel Gallery. Bermondsey is already home to the celebrated White Cube gallery and the hip Bermondsey Arts Club with its speakeasy atmosphere and fanciful cocktails.

Food – Shoreditch began its transformation with the then unfamiliar sight of “curry houses” and coffee shops, and is now a full-scale foodie hotspot. But Bermondsey is not far behind, a good example of the area’s transition is Crol & Co, an abandoned betting shop that has been transformed into a cool and popular coffee shop.

Homes and schools – An area can’t become hip without homes for the hipsters, and while prices for new developments in Shoreditch have risen rapidly, Bermondsey will have a much more accessible price point, with major housing projects coming online at New Bermondsey that will bring around 3,500 new homes to the area. Two new primary schools and a new secondary school are in the pipeline, with the area already benefiting from 16 Ofsted-rated Outstanding schools and 24 Good schools.

The ideal base for everything that Bermondsey has to offer – both now and in its exciting future – is Barratt London’s Bermondsey Heights, with homes available in the 26-storey landmark tower from just £494,000. With landscaped courtyard gardens, a roof terrace with panoramic views over the capital and a children’s play area, residents at Bermondsey Heights will enjoy an enviable lifestyle in homes that are beautifully finished and environmentally sustainable. For convenience, residents will benefit from a 12-hour concierge, Pantree (a community market) in the lobby and residents’ lounge. Even the show home demonstrates just how much Bermondsey is thriving. Designed for Barratt London by BLOCC interiors, the two-bedroom apartment features accessories and produce from local businesses throughout the space, highlighting the creative talent that is giving Bermondsey its buzz.