As of early 2025, London’s property market remains varied, with distinct trends emerging in Southeast neighbourhoods along the Thames.
Considering factors including property type, location, and access to amenities, alongside growing buyer confidence and the expectation of further mortgage rate cuts, we’ll explore which areas are likely to see price increases in 2025.
Market Overview for Southeast London Riverside Neighbourhoods
London’s property market is showing signs of recovery this year, with Thames-side neighbourhoods in Southeast London seeing renewed interest. Rightmove data reports a modest 0.3% (£1,199) rise in asking prices since October 2024, alongside a 17% year-on-year increase in buyer enquiries and a 12% boost in available housing - the largest jump in a decade. These areas, known for their mix of historic and modern properties, continue to attract professionals drawn to their strong transport links and proximity to the City and Canary Wharf.
Shad Thames Premium Warehouse Conversions Command Top Prices
Shad Thames commands high prices for its warehouse conversions, Bankside offers stylish riverside apartments, while Bermondsey and SE16 provide a mix of traditional and new-build homes. Excellent transport options, including the Underground, Overground, and Thames Clipper River services, increase their appeal. With waterfront views, cultural landmarks like the Tate Modern, and growing buyer confidence, these neighbourhoods are well-positioned for further growth in 2025.
Shad Thames remains one of the most desirable riverside locations in Southeast London. Once a hub of warehouses and wharves, it has been transformed into a high-end residential enclave, with converted warehouse apartments retaining original features like exposed brick and iron beams. The area's compact layout and distinctive elevated walkways add to its unique character.
The property market here is dominated by apartments, particularly warehouse conversions that attract professionals working in the City and Canary Wharf. Riverside units with Thames views command significant premiums, reinforcing Shad Thames’ appeal. Despite wider market fluctuations, demand remains strong, positioning the area for continued price growth.
Waterloos Diverse Property Types
Waterloo offers a diverse property market for those looking to invest in the capital’s housing market. Flats tend to dominate transactions, while houses, though far fewer, fetch significantly higher prices. Terraced houses command an even steeper premium, reflecting strong demand for limited larger properties.
This price disparity creates a split market: flats primarily attract professionals and investors drawn to Waterloo’s central location and strong transport links, while the rare houses appeal to affluent buyers seeking space. The recent price dip may signal a buying opportunity, particularly for investors looking at the more liquid flat market.
SE16 Surging Sales Volume
SE16, covering Bermondsey, Rotherhithe, and Surrey Quays, has seen a dramatic 102.6% increase in sales volume year-on-year, with 77 homes sold in January 2025 compared to 38 in 2024. Despite this surge, average agreed prices have declined, reflecting a drop over two years. This suggests that improved affordability is attracting buyers, reversing previous market caution.
Long-term data indicates steady price growth in SE16, with the median price per square metre rising significantly. While recent price moderation may concern some sellers, it presents opportunities for first-time buyers and buy-to-let investors, particularly in an area benefiting from strong transport links and ongoing regeneration.
East London's Growing Appeal and Influence
East London's property market has performed well. This broader trend supports the southeastern riverside areas, as rising values in East London may drive buyers towards more affordable neighbouring locations.
The pattern suggests that London's more affordable areas are experiencing the highest value increases, while prime locations have declined. This aligns with SE16's market activity, where lower pricing compared to Shad Thames and Waterloo has contributed to a sharp rise in transactions, reflecting the continued demand for well-connected, relatively affordable areas.
Factors Driving Property Market Dynamics
Falling mortgage rates in 2025 are expected to improve affordability, supporting price growth in Bermondsey, Shad Thames, Waterloo, Bankside, and SE16. The rise of hybrid working also plays a role, as professionals seek well-connected homes with flexible spaces for remote work. Properties offering dedicated home office areas may attract premiums, particularly in locations with strong transport links to the City and Canary Wharf.
Infrastructure developments continue to shape the market, with Waterloo’s extensive transport connections and potential future projects like the Bakerloo Line Extension influencing demand. Riverside properties remain highly desirable, particularly in Shad Thames, where, as discussed above, warehouse conversions command premiums. Meanwhile, regeneration in SE16, including major projects like Canada Water, may further impact property values over time.
Investors in Bermondsey, Shad Thames, Waterloo, Bankside, and SE16 in 2025 should consider rising market activity, with Rightmove forecasting 1.15 million transactions across Great Britain. The April 2025 stamp duty changes may drive a surge in early-year transactions, followed by a possible slowdown. With London’s property market expected to grow, these riverside areas could recover as affordability improves.
For more information on property in these areas, contact our team of local area specialist estate agents.
