My first job connected to property was in an estate agent in Paddington,W2, this was in around 2003. This was when Paddington was still seen as, and actually was, a slightly dodgy area, meaning street prostitutes would loiter daily down Sussex Gardens. The area and in particular this street was renowned for being a bit of a red light district.
The location however was very key, being next door to the W1 postcode with only Edgware Road separating the two in terms of distance, they were only minutes away from each other. In terms of connectivity to Heathrow Airport it is the strongest in the UK, with a Heathrow Express running from Paddington getting you there in 15 mins.
You therefore had this strange mix of a very strong location combined with the seedier elements you would find in a slummy part of London.
At this time there was much talk of the Paddington regeneration scheme and cleaning up the canal side, with expensive new properties and pretty shops coming up by the canal and if you walk down you come to quaint Little Venice with its canal boats and flowers, like a world within another world.
Since then the scheme has been implemented, the streets have been cleaned up and the prices have gone up and up defying the economic down turn.
A similar parallel can be drawn of Wembley and areas such as Chalk Hill estate. These were some of the worst areas in London with monstrous concrete tower blocks, places where your postman or the milkman would not go into, so you would have to go down to the shops to pick up your milk. This was of course in the days when the milkman would come around daily to give you milk freshly delivered to your door. Here were flats which would be set up as drug dens and these flats would be regularly raided. I remember once, many years ago, when I ventured in Chalk Hill with a friend and we were fired upon with firework rockets!
The regeneration scheme has pulled down these blocks and built more integrated communities instead. Wembley Park station can now handle the same amount of traffic as Oxford Street station in Central London and prices for two bedroom properties by Quentin developments are upwards of £300,000! An unheard of amount only a few years ago.
The reason why these areas are not exploited in advance is that for many people seeing is believing, and so until the buildings come up and stare them in the face they do not react. However by this time they will have missed the boat. It is also human nature to read, think and procrastinate rather than act.
The above two areas are waves which have already started to rise, and therefore in the past. What is more important is where this will occur in the future and to draw parallels with what has happened in the past.
We believe one of the strongest areas to invest is in and around Kings Cross.
Investing in central locations is what we recommend with good solid reason. These locations will hold in value regardless of whatever happens economically to the rest of the country. As mentioned in a previous article the concept of a ripple effect starting from central London and spilling over to the rest of the country is an outdated concept and no longer holds true. As the driving factors of property prices are no longer the same as they used to be. One of the biggest buyers for central London property are foreign purchasers, which historically never used to be the case.
On top of this key reason, there are many reasons why Kings Crosswill be a solid bet well into the future. £2bn is being pumped into this region.
Practically a new city is being built within a city.
This is going to be the largest single-owned site to be redeveloped in central London for 50 years and even has its own new postcode,N1C. The new community is being built on a 67-acre brownfield site. The scheme is to create 20 new streets and it is due to be completed in 2020 and will include Granary Square.
The 67- acre site is behind the station, luckily all the land is owned by the same owner and was key in providing a well planned and comprehensive development.
The statistics for King’s Cross Central come thick and fast: therewill be 20 new streets, 10 major public spaces and 50 new buildings.
20 historic buildings and structures are being restored and refurbished. There will be an 8m sq ft of mixed-use space and 22 per cent of King’s Cross Central has even now been “taken”, with staff and students from Central St Martins College of Art and Design having already moved in.
The effect of the regeneration will stretch around half a mile along Pentonville Road, Gray’s Inn Road and Euston Road, and overlap with upmarket neighbours Bloomsbury, Islington and Camden.
The rental market is driven by the impressive transport links. Six underground Tube lines meet at the station and it is possible to reach Cambridge, Leeds and Edinburgh by train, while the Eurostar service from neighbouring St Pancras means you connect to Paris and Brussels on the continent.
www.kingscrosscentral.com will provide more information of the area.
Camden is one of the areas which will benefit from the regeneration. We have many repossessed properties coming up in this location most notably one with a high rental yield which we present today:
Often we are asked by clients who are parents to purchase properties around central London close to universities. Of course what these parents are thinking is ‘why pay someone else rent.’ Here you have this option of a great investment with the possibility of providing accommodation for your son or daughter at university.
BEST OF BOTH WORLDS
Cash producing flat & strong capital growth prospects
- Superbly located 4-bedroom flat in Camden at £355,000 worth £380,000 minimum
- The most desirable student location – short walk from University College of London and University of Westminster, which means high demand for accommodation from foreign students.
- Comes with the benefit of existing tenants until August 2012 at £30,000pa – leaving over £11,000 net income after all expenses
- After that period, rent can be reviewed or new tenants found at a higher rent. August/September is the hottest time in lettings!
- Open green spaces of Regents Park are another benefit that students love.
- Ongoing King’s Cross regeneration project, worth £2bn, will have a strong impact on capital growth in the area.
Call us now on 0207 096 1083 to receive more information
Suresh Vagjiani
Managing Director
Sow & Reap
A Property Investment & Financing company.
