Property changed our lives

Property pioneers who had the courage and vision to buy into London's "new era" locations are now reaping their rewards. As the housing market steams into summer with ever increasing prices, they can cash in on their new-found wealth. The capital's property hotspots have jumped in value by more than three times since 1996. The areas that have performed best are symbolic of a new and optimistic London yet were considered among the city's least fashionable districts: Bermondsey, Shoreditch and Docklands.

Ten years ago, values in these locations were low, thanks to inner-city blight, poor-quality public housing, high crime rates and local malaise.

Loft living had yet to make its mark and the regeneration benefits of public-works projects, such as the Jubilee Line extension, were unrealised. Developers were uncertain about asking too high a price for homes in these areas, believing buyers would need powerful incentives to persuade them to overcome their reservations. Some developers chose to sell cheap shells in places that are now highly sought-after former factories or warehouses. This attracted smart buyers seeking to get even more value by fitting out these spaces themselves, often with cool, contemporary designs.

"You can only admire the people who took a deep breath and seized the opportunity," says David Salvi of Clerkenwell estate agent Hurford Salvi Carr. "Nobody knew for certain it would work out so well."

Opportunities still exist but there are fewer of them, admits Salvi. "Some areas are still undervalued - Stratford and Peckham spring to mind. If you revamp a home with a strong, modern look, the sort that is going to give the buyer the confidence to invest in the area, and bring in his mates, it is likely to get an above-average return. There is a growing market for quality-finish modern makeovers."

A report by the consultancy the Centre for Economic and Business Research predicts house prices in London are set to double by 2010 and triple by 2020.

"Even if the market slows, there will always be areas that outperform," says Ben Burston of east London estate agent Thomson Currie.

Burston's new location tip is Kingsland Road, which runs from the City to Stoke Newington. Old commercial buildings are being converted into lofts and loft-style apartments. Already there is a live/work community around the canalside warehouses and, in time, the area will become an extension of Hoxton.

"It's a mixed area, but if you are comfortable with the location, prices are attractive," says Paul Belchak of Spitalfields estate agent Tarn and Tarn. Quebec Wharf is considered one of the more stylish developments and where apartments appear to be good value, ranging from £185,000 to £310,000 (less than £300 per sq ft). At nearby Benyon Wharf, apartments cost from £285,000 to £435,000.

Dalston and King's Cross come into the tip box, too. Dalston will benefit from the extended East London Tube, with a huge scheme of 500 flats, plus retail sites planned close to the new Dalston Cross station.