Guide type: Property Investor
26th July 2016
So far, 2016 has been an unpredictable whirlwind for the UK and London property markets following the Stamp Duty surcharge in April and the Brexit referendum vote in June. Research by Molior London indicates that we will soon see a ‘sharp slowdown in transactions in the capital’ resulting from the EU referendum, whilst other experts say London, in fact, isn’t slowing down with the average home value skyrocketing past the £600,000 mark last month, increasing by 14% this year.
Whatever the result, what is certainly proving to be an obvious trend is the number of buyers heading beyond the M25 for their new home, finding that a property a few miles further out could bag them a new-build, one or two bedroom home compared to a cramped studio apartment in the city.
A recent survey found that four in five Londoners in their twenties have considered leaving the capital due to the increasing costs. In 2015, the number of Londoners moving away rose by more than two thirds, buying more homes outside of the capital than at any point since the crash of 2007, according to Hamptons International.
Hertfordshire sits directly north and north west of London, and is now seen as one of the high-flyers of the south east’s property market, along with other city peripheral counties such as Bedfordshire and Essex. According to Rightmove, there are 15% fewer properties available in Hertfordshire compared to three years ago but interest has skyrocketed by 75%! Last year’s figures also show that the county is experiencing the fastest growth in house prices of any of the Home Counties - rising nearly 12% - surpassing areas such as Surrey and Kent.
Rental yields are also considerably high, sitting at around 5.8% for a one or two bedroom apartment, with flats selling at an average of £239,305, making it an attractive option for Buy-to-Let investors looking for affordability and the promise of a high return on investment.
The anticipation of Crossrail (expected to arrive in 2018/2019) is already creating uplift in property prices across south eastern England, and soon the same could be said for a proposed Crossrail 2, if implemented in the late 2020s. Three stations have been suggested for the route in east Hertfordshire: Waltham Cross, Cheshunt and Broxbourne.
Director of Savills Residential Research, Susan Emmett, stated that the new transport project will open up new opportunities for regeneration, triggering further price growth and increased rental yields.
Many people now looking further afield to buy or rent are finding that not only are places outside of London cheaper, but they offer a more tranquil quality of life that is often quite hard to find in the urbanised capital.
Situated in south west Hertfordshire, Kings Langley is a historic village, home to quaint independent shops, restaurants and public houses, whilst being just 21 miles north west of Central London. This village is perfectly placed for commuters, with the M25 and M1 approximately five minutes’ drive away, and Luton Airport accessible in under 20 minutes. Conveniently, Kings Langley’s railway station provides direct journeys to Euston station in only 27 minutes.
Another fantastic Hertfordshire location is Rickmansworth, which sits just inside of the M25, surrounded by rural villages including Chorleywood and Croxley Green. Served by the Metropolitan line in Zone 7, residents can enjoy a tranquil residential experience as well as city convenience, making this the perfect choice for young professionals looking for affordability in London’s peripheral suburbs. Whilst also sitting on the Tube map, the town’s train station also provides mainline services to Marylebone in a speedy 29 minutes – a considerably shorter journey than those travelling from East London to the West End! Rickmansworth is also less than half an hour’s commute to both Heathrow Airport and Luton Airport; perfect for employment opportunities and added travelling prospects.
Strategically located two minutes’ walk from Kings Langley station, Pinnacle House will comprise a fabulous selection of stylish studios and one bedroom apartments, all flawlessly designed by Galliard Homes to incorporate all of the necessary features to accentuate a contemporary lifestyle. Residents will embrace both the rustic and the refined with stand-out specifications set to include oak one-strip flooring, a fully-fitted kitchen with integrated appliances and video entryphone security. Spacious, energy-efficient and sophisticated in design, these will provide the ideal first homes for both renters and buyers.
This fantastic office conversion, which is expected to reach completion in 2018, will offer canal views and will feature access to a private landscaped courtyard for added desirability.
Recently launched as part of Galliard’s Summer Sales collection, each reservation at Pinnacle House will receive a free furniture package plus the choice of either a one year service charge break or one year off letting and management fees.
Situated a six minute walk from Rickmansworth station, the new Langwood House development will comprise studio and one bedroom apartments designed to Galliard’s exceptional specifications to enable a comfortable and contemporary lifestyle. All apartments will come with integrated kitchen appliances, video entryphone security and Sky+ accessibility (subject to subscription), whilst select studio apartments will come with a swivel TV and storage unit, enabling viewing from both the living and bedroom areas.
Perfect for first-time buyers and Buy-to-Let investors, Langwood House is adjacent to the high street, with a wonderful selection of cafes, restaurants and shops available on its doorstep. As well as this, the M25 is approximately a six minute drive away, providing a journey time of just 23 minutes to Heathrow Airport. From the town’s train station, commuters can travel to Marylebone in London’s West End in as little as 29 minutes via Chiltern Railways mainline services. Sitting in Zone 7, Rickmansworth also benefits from Tube services via the Metropolitan line.