Looking for London Property with Growth Potential? Start South of the River

More investors are starting to look south of the Thames. Here's what’s driving interest in South East London and why it could offer better long-term value than many think.

Jessica Wei

July 15, 2025

Looking for London Property with Growth Potential? Start South of the River

When people think about buying property in London, their attention often goes straight to postcodes north of the Thames. Places like Camden, Islington or Kensington tend to get most of the spotlight. But in recent years, there’s been a noticeable shift. Investors are starting to take a closer look at what’s happening south of the river, particularly across South East London.

Zones 2 and 3 in areas such as Lewisham, Greenwich and Kidbrooke are seeing strong growth. This is driven by better transport links, ongoing regeneration projects and more realistic pricing compared to central areas. For investors looking for value with future potential, it might be time to rethink the map.

Kidbrooke Station - A sleek, modern station entrance sets the tone for a connected and growing neighbourhood

Regeneration Is Driving Growth South of the Thames

Large-scale regeneration has changed the face of South East London. Areas that once flew under the radar are now home to major developments, upgraded infrastructure and growing local economies.

One of the biggest transformations is happening in Lewisham, where a long-term masterplan is creating new homes, commercial space and public areas. The Lewisham Gateway project has already introduced new shops, a cinema and hundreds of residential units, with more to come.

Further east, Greenwich Peninsula is undergoing a multibillion-pound transformation. Thousands of new homes, schools and cultural venues are being delivered. Nearby Woolwich is also seeing heavy investment, helped along by the arrival of the Elizabeth line.

These changes go beyond appearances. They are increasing demand from buyers and tenants who want better value but still need to be within easy reach of central London.

Greenwich Peninsula Regeneration Masterplan

Better Transport Is Opening Up New Areas

South East London has not always had the best transport links compared to the rest of the city. That has changed significantly.

The launch of the Elizabeth line has been a game changer, especially for areas like Woolwich and Abbey Wood. The line cuts travel time to Canary Wharf, the City of London and Heathrow Airport to under an hour.

Even without the Elizabeth line , public transport is solid. Stations such as Lewisham, Greenwich, Kidbrooke and New Cross all connect to central London via National Rail or the DLR. Journeys to London Bridge, Cannon Street and Charing Cross are typically under 20 minutes.

That kind of access is helping previously overlooked neighbourhoods become more attractive to both owners and renters.

More Space and Lower Prices

One of the main reasons buyers are heading south is price. According to Rightmove, average property prices in South East London are still well below those in similar areas north of the Thames.

For instance, a modern flat in Kidbrooke or Lewisham might start at around £400,000. The same type of property in Camden or Clapham often starts above £600,000. For investors, especially those buying to let, the lower entry point can make a big difference.

It also leaves more room for capital growth as infrastructure improves and demand increases.

A pair of swans lead their cygnets through the greenery of a peaceful, family-friendly park in Kidbrooke Village

Brunch with a View - The Ivy Café spills onto the pavement with flowers, chairs, and a church spire just beyond

Tenants Are Looking South Too

Renters are moving in the same direction as buyers. Many are being priced out of Zones 1 and 2 north of the river but still want quick access to work and decent local amenities. South East London is filling that gap.

Professionals working in Canary Wharf or the City are fuelling rental demand in areas like New Cross, Lewisham and Kidbrooke. Most are looking for value and connectivity. They are also more open to newer developments with outdoor space and proximity to green areas, something South East London offers more readily.

This trend supports stable rental yields and strong occupancy levels.

London from Above - The Thames curves through the city at dusk, catching the last light of day in a sweeping aerial view.

A Closer Look at One Example in South East London

One project that shows how much the area has changed is Kidbrooke Village by Berkeley Group. Located in Zone 3, it is just a short walk from Kidbrooke station which has direct trains to London Bridge.

The development includes new homes, schools, green space and shops. The idea is to create a complete neighbourhood that is well connected and self-sustaining. It appeals to a mix of buyers including first-time owners, investors and overseas buyers looking for a more affordable entry into the London market.

This is one example of how new developments south of the river are designed to meet modern needs while still offering room to grow.

Kidbrooke Village - A private terrace looks out across a quiet pond, framed by trees and landscaped parkland.

Why South East London Still Has Room to Grow

Not every part of London offers the same combination of price, transport access and growth potential. South East London still has all three.

For those priced out of central areas or simply looking for better long-term value, these neighbourhoods are increasingly hard to ignore. Infrastructure continues to improve. Regeneration projects are ongoing. Tenant demand remains steady.

Being a few stops further out can often mean better yields, fewer gaps between tenancies and a stronger long-term position.

If you are looking at where the market is likely to grow next, South East London is worth your attention. Speak to our team if you want to run through the numbers or learn more about the area.

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