Canny investors eye up properties in Oxford and Surrey
A shortage of space in some of the UK’s most prominent areas and an abundance of cash-rich national and overseas purchasers will continue to drive rents and property prices higher across many parts of the country, including Oxford and Surrey, according to various estimates by property experts.
Surrey has long been a top location to live in. Property buyers often face tough competition for what comes to the market in Surrey, particularly when there is a new property for sale in Esher. High demand generally places upward pressure on property prices, which appeals to property investors looking to capitalise on future capital appreciation.
Esher, located in the borough of Elmbridge in south east England near the River Mole, is a popular place to live, thanks partly because it offers homebuyers the chance to have the practicality of city life with a countryside setting, due to its easy commutable distance to Charing Cross in central London.
As well as excellent transport links, homeowners in Esher also enjoy the local entertainment and shopping facilities. The area, a prosperous part of Surrey, was recently described as “one of the best places on Earth”, by local resident and ex-footballer Gary Lineker.
High rental demand for homes in Esher is also appealing for property investors as this is helping to push rents higher.
Estate agents Hamptons International project that high rents in central London will continue to push demand further out to areas like Esher as renters are unable or unwilling to stretch their budgets.
“We are expecting the rental market boom to continue in prime and Greater London, driven by a continued imbalance between supply and demand. For the first time ever, the private rented sector will house more people in the UK than the social rented sector, which will put continued pressure on prices,” said Lesley Cairns, head of lettings at Hamptons International.
High demand for property to rent in Oxford, particularly from students wanting to attend the local university, is also attracting more property investors to this vibrant and diverse county.
Rebecca Priestley of leading Oxford estate agents John D Wood & Co. comments: “Here [in Oxford] the excellent transport links to London and to the rest of the South of England, the good range of both private and state schooling, and excellent retail and recreational facilities makes the area highly attractive for those who will be moving their families and businesses here.”
In fact, the lack of homes in relation to demand often means that any new property for sale in Oxford is generally treated like gold dust – sought after by a range of buyers, particularly investors looking to tap into the booming student rental market in Oxford.
Research by Paragon Mortgages illustrates the fact that the student housing sector presents landlords with some of the highest rental yields in this country.
Landlords renting properties to students generally achieve the highest rental returns, with an average yield of 7.62 per cent, according to Paragon.
High demand for properties in Oxford, including student housing, has inspired property developer A2Dominion to launch a new student housing scheme in Oxford.
The organisation plans to redevelop Luther Court to create 43 new homes and 19 cluster apartments for students.
A2Dominion, which currently manages over 2,500 homes in Oxford, is preparing a planning application for submission to Oxford City Council, following consultation with residents of Luther Court.
Laurinda Hornblow, A2Dominion’s area director (North), said: “This is an exciting redevelopment project which will not only provide high quality new homes, replacing the existing Luther Court scheme which is almost 30 years old, but improve access and privacy for residents. Subject to planning consent, we hope to begin building work in late 2012.”
The plans for the redevelopment, which have been designed by Yurky Cross Archtiects, include eight one-bedroom homes and 35 two-bedroom homes, and 19 student cluster flats, providing a total of 76 bedrooms for students.
Author Details : John Alcorn looks at the property market in Surrey and Oxford and finds that there is high demand for property for sale in Esher and property for sale in Oxford as well as property to rent in Oxford.
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