Property investment is a popular way to diversify your portfolio beyond the traditional stocks and shares. If you’re living in Singapore, looking for property for sale in London is an obvious choice. I recently had lunch with Managing Director of Barratt London, CRAIG CARSON, and heard all about why Royal Gateway in North Acton is one property development worth considering, whether as an investment, a second home or even as a future university pad for the kids.
5 reasons Royal Gateway is a great property investment
#1 The location
Royal Gateway is a new residential development right in the heart of thriving North Acton. Known for the quality of its parks and open spaces, the West London Borough of Ealing is one of London’s most lively and up-and-coming locations.
“The area is popular with business people and has great travel connections thanks to the new Elizabeth Line,” says Craig. Average travel times are only 11 minutes to Notting Hill and Bond Street. And, with less than 30 minutes to the City, the West End, Canary Wharf and Heathrow, it’s super easy to get where you need to go.
It also sits within an official regeneration area, with a total investment of £26 billion. Part of this is a thriving new high street lined with great shops, restaurants and entertainment venues. “This has led to buoyant property prices,” says Craig. “There’s been a 51% increase in selling prices in North Acton in the past ten years.” Add to this the fact that over half of residents in North Acton are under 34, there’s huge demand for rental property. “Rents in North Acton increased by a whopping 39.5% in five years, far outstripping other London suburbs.”
As an education hub, North Acton is also a great location for families. World-class universities and over 150 highly rated Ofsted schools are within a three-mile radius of Royal Gateway. “The increasing number of students from Singapore applying to study in the UK is placing Singapore among the top 10 countries from which overseas students arrive.” So buying a home for them rather than renting makes financial sense.
#2 New-build, high-quality property
On offer are 300 beautifully designed new homes – from studio to one-, two- and three-bedroom apartments, all with a private balcony. Sizes range from a space-efficient 39-square-metre, one-bedroom apartment up to a generous 107-square-metre three-bedroom home with a fabulous roof terrace with views over central London. Similarly to condos in Singapore, there are great facilities. These include access to rooftop gardens, play areas and a co-working space. Plus, there’s a residents’ lounge and gym, and outdoor exercise equipment in the communal gardens.
When looking for property for sale in London, it’s worth keeping in mind that a resale property will require full redecoration. “When you buy a new home with Barratt London you can open the door and move in. Newly painted walls, fresh carpets and floors and brand new kitchen appliances ensure a smooth, convenient and cost-effective start,” says Craig. All homes have video door entry and fibre broadband connectivity. With this in mind, the affordability, starting from £450,000, with an expected rental yield exceeding 5%, surprised me.
#3 Top eco-credentials and life satisfaction
“We take pride in our sustainability commitments. This is why we’ve introduced five key principles to reduce our environmental impact and carbon emissions,” enthuses Craig. These include energy and water efficiency, investing in green energy solutions, access to green spaces, and encouraging the development to be car-free.
All homes incorporate excellent insulation to complement centralised air source heat pumps. The result is 100% electric energy communally to power the heating and hot water and help lower bills. According to Craig, “water consumption values are also designed to deliver long-term savings. And they help to reduce the UK’s water scarcity issues” Plus, the organisation is “improving air quality by not only meeting air quality regulations, but going above and beyond. This is done by introducing mechanical ventilation systems to continuously provide fresh filtered air and regulate the temperature of homes for residents.”
A vital part of urban planning is encouraging more sustainable methods of travel. “Residents have superb access to local public transport networks and over 500 cycle spaces. Living in a sustainable, car-free development reduces traffic congestion and air pollution.” Plus, biodiversity has been boosted by 10%, with more than 100 new trees encouraging wildlife in the city.
#4 Savvy investment opportunity
Property for sale in London has long shown a solid and reliable upward price trend. “Over the past 30 years, it’s compounded 9% each year. The average London home has seen an increase in value of 45% in just nine years.” Demand for rental property is extremely high, with around 38 tenants chasing every rental property. “Void periods are rare, and high rents means that a rental yield of over 5% is easily achievable.”
Greater London covers a massive area of 1,569 square kilometres – twice Singapore’s size. There are many different areas that offer fantastic opportunities for investors. “We concentrate our developments in areas that have first-class public transport links and are in regeneration areas, where inward investment is improving infrastructure and jobs.” Properties in these regeneration areas have been found to enjoy additional capital growth of around 5.8% compared with nearby areas. This makes it even better for investors.
“Overall, the UK tax regime is favourable to expat investors – rates for non-UK taxpayers buying an additional home range from 5% on properties up to £250,000 to a maximum of 17% Stamp Duty for a home worth more than £1.5 million,” Craig says. This is far preferable to the 30% being charged on second home investments in Singapore. “Add in the fact that the average London property costs just £539,917 compared with around £1,203,512 in Singapore, and major savings can be made by buying property in the UK.” Plus, gains will only increase with a favourable exchange rate.
“The unbeatable combination of short-term yields from tenants and long-term capital growth means that investing in the UK property market is a shrewd choice,” says Craig. Interestingly, PwC anticipates an annual price growth in Acton of 5 to 10%, providing investors with both short-term rental income and long-term capital growth, he adds.
#5 Barratt London has a proven track record for property investment
Barratt London is a market-leading residential developer with over 40 years’ experience delivering over 50,000 high-quality homes in London. It’s part of the UK’s largest housebuilder, Barratt Developments, which has been building across the UK for more than 60 years. They are also the most highly recommended developer in the UK. And they’ve been awarded five stars in the Home Builders Federation Customer Satisfaction Awards every year since 2010.
“What links all of our many developments across London is our skill in choosing locations,” says Craig. “These offer great transport links plus the prospect of good capital gains linked to regeneration.”
To learn more about starting your property investment journey, check out the website and reach out to Barratt London today.
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