New Build Investor Guide – Merton

May 2021

Buying a new build property off plan? Check out our Area Guide first

Are you considering purchasing a new build, off plan property in Brent? Want to get the latest information on house prices, demographics and other useful information before you commit to a deal?

Our Area Guides give you the latest relevant information from local governments, the Census and the Office of National Statistics (ONS) data. They’re designed for offshore, new build property investors to help you understand an area in detail so you can make informed investment decisions.

Read on for investor details specifically about Brent but if it’s more detail about the wider UK property market you need, you can download our latest report here. In our report we address two key questions:

1 Is investing in UK residential property still worth it?
2 If so, where are the best opportunities for property investors and why?

Merton, London

Merton is one of 20 outer London boroughs and is located in south-west London.  Spanning over square miles, it is the 17th largest London borough by area and has nearly 3 square miles of open space. It borders the the London boroughs of Wandsworth, Lambeth, Croydon, Sutton, Kingston-upon-Thames and Richmond-upon-Thames. The main towns within the borough are Mitcham, Morden and Wimbledon. The borough is host of the Wimbledon tournament, one of tennis’s most prestigious competitions.

Demographics

Merton’s population is forecast to grow by over 11% by 2030

Population (2018) 209,421
Forecast Population 2030 232,473

Source: data.london.gov.uk


Economically Active Population

A largely young, diverse, mobile population.

Age Range Percentage of population
16 – 64 67%
Under 15 21%
Over 65 12%
Martial Status:  
Single 40%

Source: data.london.gov.uk


Average Life Expectancy

The average life expectancies for those born in Merton between 2016 and 2018 are below.

Males 81 (UK average is 79). Males born in Merton have the 10th longest life expectancy of all London boroughs.
Females 84 (UK average is 83). Females born in Merton have the 18th longest life expectancy of all London boroughs.

Source: ons.gov.uk


Population Density (2011)

Merton has 5,490 people per km2. Lower than the London average of 5,701 people per km2 and the 15th lowest density of all London boroughs.

Source: ons.gov.uk


International Migration (2018-19)

2,878 new residents from overseas moved to Merton in 2018 -2019. Twenty-six London borough’s welcomed more new residents from overseas than Merton.

Source: ons.gov.uk

Country of Birth

Location of Birth Proportion of Population
UK and Ireland 64%
EU 9%
Other countries 27%

Source: data.london.gov.uk


Crime & Safety

Crime Numbers (April 2017 – March 2018)   13,574
Crime rate per 1,000 population (April 2017 -March 2018) 66
Merton has the 4th lowest crime rate per 1,000 people of all London boroughs.  

Source: data.london.gov.uk


Education

Schools

Primary Schools 62 (11 of which have an Ofsted rating of outstanding)
Secondary Schools      21 (7 of which have an Ofsted rating of outstanding)
Schools and Colleges (16-18 years) 15 (7 of which have an Ofsted rating of outstanding)

Source: compare-school-performance.service.gov.uk


Hospitals

The Wilson Hospital
Parkside Private Hospital

General Wellbeing

Population considering themselves in very good health 52%
Population considering themselves in very bad health less than 1%

Source: data.london.gov.uk

Employment & Economy

79.8% of working aged people employed (compared to 75% across England 74% across London).

Top 4 Sectors of Employment

Public administration, education and health    28%
Finance, banking and insurance 26%
Distribution, hotels and restaurants 14%
Transport and communications 14%

Source: data.london.gov.uk


Major Employers

In 2020, there were 25 companies in the borough employing more than 250 people and 110 companies employing between 50 and 249 people. (source: nomisweb.co.uk).

Jobs and Job density

Approximately 3,125 residents of Merton also work in the borough. 34,651 people travel into the borough each day for work and 63,608 residents work outside the borough. The daytime population of the borough therefore decreases by 28,957 people each day. (source: data.london.gov.uk).

Median Gross Annual Pay for full-time employee jobs (2017) £31,365
Number of jobs in the borough (2019)            92,000
Jobs per resident        0.49 (London average 1.03 and UK average 0.87)

Source: nomisweb.co.uk and data.london.gov.uk


Housing

Number of residential properties in Merton 83,950

Source: data.london.gov.uk


Property Ownership (2018)

own property outright (no mortgage) 32%
own property with mortgage 31%
rent from a Housing Authority or the Local Authority 13%
rent from a private landlord (representing approximately 19,400 private rentals) 24%

Source: data.london.gov.uk

Households with no car or van (2011) 33%

Source: nomisweb.co.uk


Household Composition

One person households    28%
One family households     58%
Other  (sharers / students etc)   14%

Source: nomisweb.co.uk


Average House Prices

Average house prices in Merton are the 11th most expensive of the London boroughs.

Average achieved price January 2020 £499,698
Average achieved price January 2021 £551,175
Increase/Decrease  +10.3%

Source: www.gov.uk


Volume of Sales

During the COVID pandemic, the number of property transactions in the borough of Merton fell by 22%. Nineteen London boroughs saw larger falls in transaction volumes than Merton.

Number of residential sales to year ending September 2019 2,145
Number of residential sales to year ending September 2020    1,758

Source: ons.gov.uk


Achieved Rents (January to December 2020)

Mean monthly average rents in the London Borough of Merton:

  London Median Rents
(per calendar month)
Merton
(per calendar month)
Studio     £950 £980
1 bedroom £1,200 £1,250
2 bedrooms £1,450 £1,500
3 bedrooms £1,750 £1,950

Source: london.gov.uk


New Build Developments in Merton

There are five large new build developments in Merton with apartments currently available for sale. Average asking prices for three of these developments are set out below.

Construction PropTech Pioneer

Wimbledon Hill Park (Berkeley Homes)

Total Number of properties 75 (57 private)
First launched June 2018

Visit Website


Average Prices – Wimbledon Hill Park

  Minimum Average Maximum
Price £599,950 £1,277,772 £2,750,000
Price per ft² £891 £1,088 £1,219
Area (ft²) 594 1,172 2,497

source: Molior

  Minimum Average Maximum
1 Bedroom £599,950 £659,233 £799,999
2 Bedroom £875,000 £1,098,383 £1,525,000
3 Bedroom £1.375.000 £1,628,091 £1,820,000

source: Molior


Wimbledon Grounds (Galliard)

Total Number of properties 632 (552 private)
First Launched March 2018

Visit Website


Average Prices – Wimbledon Grounds

  Minimum Average Maximum
Price £340,000 £543,727 £825,000
Price per ft² £617 £729 £802
Area (ft²) 442 758 1,216

source: Molior

  Minimum Average Maximum
Studio £340,000 £340,000 £340,000
1 Bedroom £420,000 £458,846 £517,500
2 Bedroom £542,500 £586,846 £662,500
3 Bedroom £670,000 £738,125 £825,000

source: Molior


Earlsfield Place (First Base)

Total Number of apartments 129 (105 private)
First Launched September 2020

Visit Website


Average Price – Earlsfield Place

  Minimum Average Maximum
Price £520,000 £783,125 £1,150,000
Price per ft² £631 £761 £848
Area (ft²) 619 1,049 1,631

source: Molior

  Minimum Average Maximum
1 Bedroom £520,000 £521,667 £525,000
2 Bedroom £645,000 £685,000 £725,000
3 Bedroom £775,000 £1,028,333 £1,150,000

source: Molior


Environment & Leisure

There are nearly 3 square miles of parks and open space in the London borough of Merton including Wimbledon Common.

Facilities in the borough include:
7 libraries
3 leisure centres
Shopping at Centre Court shopping mall, Priory Retail Park and Merton Abbey Mills.

Features of interest in the borough include:

The Championships, Wimbledon, held at the All England Lawn Tennis and Croquet Club in Church Road Wimbledon.

The Baitul Futuh mosque – the largest mosque in western Europe. The mosque can accommodate 10,000 people and has been voted in the top 50 in the world by Spectator Magazine.

Transport

Merton’s overground and underground stations are in Zones 3 and 4.

National Rail Stations

Tooting Haydons Road
Wimbledon Wimbledon Chase
South Merton Morden South
St Helier Mitchem Junction
Mitcham Eastfields Rayners Park
Motspur Park  

Underground Stations

Colliers Wood (Northern Line) South Wimbledon (Northern Line)
Wimbledon (District Line) Wimbledon Park (District Line)
Morden (Northern Line)  

Local Government

The Labour Party

UK market report 1536x768 2 PropTech Pioneer