The beginning of a new year is a great time to reassess your property portfolio’s performance and start researching locations for potential investments for the upcoming 12 months.
While demand for property investment opportunities remains, investors’ strategies have changed in response to the Covid-19 pandemic. Namely, the variety of options now on offer in emerging property hotspots following a shift in buyers and renters’ living habits and lifestyle changes.
As a result, buy-to-let investors have been looking beyond the traditional locations for rental properties and exploring up-and-coming markets that offer strong growth over the coming years.
London has been the destination of choice for many property investors in the past. But, while sub-sectors of the capital’s real estate market have proven profitable over the last two years, buy-to-let investors have increasingly recognised the effect of the pandemic on the lives of tenants, leading landlords to destinations like Redhill in London’s commuter belt.
London’s second-best commuter town
The leafy Surrey town of Redhill was recently named London’s second-best commuter town by property portal YOPA, only beaten by St Albans in Hertfordshire. Boasting a frequent and fast direct train into London – with a journey time of around 30 minutes – and the average property price of £416,944, Redhill has emerged as a popular town for those looking to relocate outside of the capital.
For buyers looking towards London’s commuter belt for their next rental property purchase, it should come as no surprise that housing values in Redhill have increased by 4% over the last 12 months and by 10% since 2018. Value for money is a driving factor behind Redhill’s rise in popularity, offering both buyers and renters a lower entry-level onto the property market.
Interestingly, for those comparing the capital required to invest in Redhill, the average cost of a property is significantly lower than comparable commuter belt hotspots. For example, the average price of a property in neighbouring hotspot Woking is £540,887, £618,676 in St Albans and £711,681 in London’s most established commutable town Sevenoaks.
Redhill offers buy-to-let investors considering adding a commuter belt property to their portfolio a significantly lower level of investment. With housing values in the South East set to rise by 10.4% by 2026, a rental property in Redhill has the potential to increase significantly in value.
Average house prices in Redhill are £416,944, a popular town for those looking to relocate outside of the capital
Housing values in Redhill have increased by 4% over the last 12 months and by 10% since 2018
Price of a property in neighbouring hotspots includes Sevenoaks – £711,681 which is London’s most established commutable town
Housing values in the South East set to rise by 10.4% by 2026, a rental property in Redhill has the potential to increase significantly in value