For buy-to-let property investors seeking opportunities in the UK, some of the best prospects for regular rental yields and long-term capital growth can be found in the London commuter belt.
The capital holds enormous appeal for people seeking to further their careers or pursue new business ventures, but the extremely high housing and general living costs mean living in the city is simply not an option for most people.
Government figures show that the average London house price was £480,425 in April 2020, compared to £327,413 in the south-east and £295,640 in the east of England.
It’s a similar story in the private rental market, with average rents in London standing at £1,611 in July 2020, according to the HomeLet Rental Index, compared to £965 across the UK as a whole, or £808 when London is excluded.
The upshot of this is that rental accommodation in locations that are within easy reach of the capital, but don’t have the city’s extremely high costs, is in high demand. Owners of properties in popular commuter towns can therefore expect to receive reliable rental yields and a low risk of void periods.
One such town is Chatham in Kent, which is home to an exciting new waterfront development: Chatham Waters.
The Chatham Waters story
Chatham Waters is part of a regeneration of the area being led by Peel Land & Property, part of the wider Peel Group, which acquired the historic Chatham Naval Dockyard back in 2006. The plan to redevelop a formerly underutilised brownfield site to deliver much-needed new housing was launched in 2013.
Since then, approximately £50 million has been invested in the renewal of 26 acres of land, providing hundreds of new homes and also generating hundreds of jobs.
Chatham Waters is due for completion in November 2020. The opening of the property will provide a valuable boost in the supply of high-quality living space in a popular commuter belt location – a welcome development for private tenants and buy-to-let investors alike.
Tenants looking for a combination of affordability, high-quality living standards and convenient access to London will find exactly what they are looking for at Chatham Waters, which comprises a selection of one, two and three-bedroom apartments in a scenic waterfront destination.
Residents will be able to enjoy views across the River Medway, as well as easy access to the various retail and leisure units that are also emerging as part of the regeneration of the area.
Looking beyond Chatham, some of the most popular and picturesque parts of Kent are within easy reach of the town, such as nearby Rochester, which is home to a 12th century castle and a cathedral, and is also known for its connections to Charles Dickens.
Visitor destinations like Canterbury, Maidstone and West Malling are also easily accessible by rail and road from Chatham, as are some of the most scenic parts of the Kent countryside.
London commuters who are looking for the ideal spot to live within travelling distance of their workplace can reach the centre of the capital in just 36 minutes by train from Chatham. This could prove to be one of the most attractive aspects of Chatham Waters for renters seeking the perfect work/life balance.
The high living standards on offer at this new development, combined with the strong and steady demand for rental accommodation within reach of London, are sure to make it an attractive prospect for investors interested in securing returns from UK buy-to-let property.
Furthermore, the site itself has a number of key characteristics that will attract the attention of prospective buyers, including the fact that it comes fully managed and is being delivered by an established, award-winning developer.
As far as financial incentives are concerned, investors can expect to start seeing net rental returns of up to 6% when Chatham Waters opens its doors in November 2020. Owners will also benefit from positive capital growth potential in the mid- to long-term
Looking at the UK property investment picture as a whole right now, the coronavirus pandemic has clearly had a significant impact on the housing sector in 2020. But since the market began its gradual reopening in May, there have been many encouraging signs of a swift return to normal activity, including what Rightmove called an “unexpected mini-boom” in July that pushed average asking prices to a record high.
Government data also showed ongoing year-on-year growth in house prices in April, at the height of the virus outbreak and the resulting lockdown in the UK.
As far as the buy-to-let market is concerned, experts have highlighted clear signs of recovery in this segment of the property industry. These positive trends look set to continue in the near future, thanks to wider economic influencers such as the Bank of England’s record-low interest rate and the stamp duty holiday that will remain in place until March 31st 2021.
Buy-to-let investors looking to take advantage of these factors and secure their stake in the UK property market should act quickly to register their interest in Chatham Waters.
Contact Experience Invest to learn more about this development.