London’s rental market continues to offer good investment opportunities for those willing and able to enter the buy-to-let business.
When home-owner Doris Woehnl, 27, decided to get involved, she opted for a new-build in Croydon because of the town’s transport links and potential for growth.
The reservations manager for the Stafford Hotel bought a one-bedroom apartment with views of the River Wandle at Barratt London’s New South Quarter. Doris was especially keen to buy a new-build because they are low maintenance and attract young professionals with their modern design.
‘New South Quarter is close to where I live so, as a new landlord, it will be very easy to manage,’ she says.
‘Not only are the apartments incredibly well designed, they are also affordable and within close proximity to central London. I know it will be a good investment as I am already receiving great interest from potential tenants.’
New South Quarter is on Purley Way and has good transport links, shops, cafés and restaurants, so Doris hopes tenants will be easy to find.
The development is near central Croydon and not far from the proposed Westfield Whitgift shopping centre, which will bring more retail and leisure facilities into the area.
Croydon is also ranked as London’s greenest borough and it’s easy to get to Surrey’s countryside and the green belt.
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Homes for sale in London at under £200,000 are increasingly rare but Doris paid £190,000 for her flat and is keen to start her new role as a landlord.
‘I’m extremely pleased with this property and I think there’s an incredible amount of potential not only at New South Quarter but also in central Croydon,’ she says.
Crediting the service she got from Barratt London, Doris adds: ‘They made my first buy-to-let investment practically a joy and I feel confident that this was a great decision.’
New South Quarter is a short walk from Wandle Park tram station with services into West and East Croydon taking less than ten minutes. With a regular train service from West Croydon and a fast train to London from East Croydon, residents have several opportunities within easy reach.
Barratt’s Gary Patrick says investors see the potential for capital gains in Croydon, with expected rental values of £840 per month for a one-bed and £1,080 per month for a two-bed.
‘They’re a great offering to investors looking for properties achieving solid rental returns and a great opportunity to buy properties popular with tenants looking for a low- maintenance rental home,’ he says.
‘Croydon is becoming increasingly popular with a range of buyer profiles and rental yields can only be expected to rise with the £1billion redevelopment by Hammerson and Westfield of the Whitgift centre set to bring an additional £30m investment in the town’s infrastructure and the creation of 5,000 new jobs.’
New South Quarter’s latest phase, The Royal Crescent, is made up of one-bed suites, one and two-bed flats with open-plan living areas and fitted kitchens.
All have either a balcony or terrace, many with river views, plus on-site concierge and a proposed café and nursery. When complete, the development will have 923 flats from £165,000.