Investors turn to commuter belt

Two-thirds of buy-to-let investors will be looking to increase the size of their portfolios in 2008, encouraged by the likelihood of a cut in interest rates and further rental growth, both of which will help to ease pressure on returns.

As a result, Crest Nicholson is seeing a rise in the establishment of strong rental markets across many of its regional development sites, with investors being particularly attracted to commuter hotspots where the combination of lower prices and high occupier demand helps to guarantee security of return.

This was the case for investor purchasers Javad Kabiri and his cousin Aram Lachin, who purchased 3 two-bedroom apartments at Crest Nicholson’s landmark Aspect development in Greenford.

Javad commented: “The apartments at Aspect are the latest addition to my portfolio. Some might say it's a bold purchase and that I should wait to see the level of interest in one flat before I buy a further two. However, I have been in this business for 16 years now and I know what my tenants want. The great location, less than half an hour from central London, combined with the number of local conveniences on Greenford High Street, will make Aspect very popular with residents.

“We looked at a few other properties in the area, but the specification of Aspect really out-did the rest. I was expecting the price to reflect this, but it actually offered great value for money. The rate at which the apartments are selling convinces me that this is a sound investment.”

Aspect sits at the heart of a thriving urban community, with a vibrant mix of shops, café’s, bars and restaurants along Greenford high street. The development is within easy reach of Greenford underground station, on the Central Line, with the nearby A40 and M4 offering direct road links to central London, Heathrow and the West.

Comprising a range of 1- and 2- bed apartments, all with secure parking, Aspect combines modern architecture with sleek interior design that reflects the modern living requirements of today’s buyer. With the last remaining 2-bed apartment priced at £279,950, potential purchasers are being advised to register their interest now.

Further afield, both Milton Keynes and St Albans boast strong, investment-led marketplaces, bolstered by their excellent transport links and proximity to Central London.

At thehub:mk, located in Central Milton Keynes and only minutes away from the train station, Crest Nicholson has found that 90% of homes have been sold to investors. There are now only 2 one-bed apartments left in the current phase, priced from £174,940, and both set within 4.3 acres of architecture and landscaping surrounding the vibrant Central Piazza, with its diverse mix of café’s, restaurants and bars.

London Euston is only 35 minutes away from Milton Keynes, whilst Birmingham New Street is under an hour in the opposite direction. There is easy access to the M1 J13, and Birmingham International Airport and London Luton Airport can both be reached in less than 60 minutes by road or Express bus.

Helen Watts, Sales and Marketing Manager at Crest Nicholson (Chiltern) Ltd. said: “With average house prices in London hitting more than £355,000, purchasers are starting to look at options further afield. House prices are over 50% cheaper in Milton Keynes and, even taking into account the cost of commuting, this is an attractive option for investors looking to maximise upon their assets in today’s difficult market.”

Crest Nicholson’s Mezza Luna development in St Albans is also ideally placed for commuters, with the mainline station and direct links to London St Pancras International and the City only a short walk away.

Mezza Luna is a mile and a half from St Albans City Centre and comprises 22 apartments arranged across 3 separate buildings, all with exterior timber panelling and red brickwork. Many apartments feature private terraces and all have access to a communal roof garden.

St Albans has always been recognised as a strategic centre, both historically and now as a major commuting hub, and is home to a vibrant social scene with an array of bars and restaurants, boutique and designer shopping, theatres, the Alban Arena and the Abbey, as well as open spaces at both Clarence Park and Verulamium Park.

There are now just 2 two-bedroom apartments remaining, priced from £274,950.

For further information visit Crestnicholson.com.