When hearing the words “Elephant & Castle”, most Londoners immediately think of a run-down and ramshackle area dominated by a double roundabout of traffic turmoil and two large and loathsome estates – the Heygate and Aylesbury, both of which look, feel, and smell of decades of decay and neglect.
A 1960s shopping centre forms the route for passengers changing between overground and underground trains. Pedestrians criss-cross between one side of the road and the other, using a series of dimly lit underpasses.
All this is about to change and in the most dramatic fashion. The opportunity for the property investor in Elephant & Castle property is equally dramatic.
Massive regeneration to create a 21st-century Elephant and Castle
Southwark Council is leading a colossal £3 billion regeneration project which will transform the Elephant & Castle property investment:
- The town centre will be pedestrianised (the underpasses are to disappear)
- 5,000 new and replacement homes will be built
- 450,000 square feet of retail space is planned
- The separate underground and overground terminals will be amalgamated as part of a new, integrated public transport hub
- Parks and green spaces will help gentrify the area
Property investors will own property in a location with high appeal to residents. The concrete jungle will become a pedestrian-friendly suburb, with tree-lined streets and new rest and relaxation facilities. Along with the changing leisure scene, a friendlier, more cultural feel will bring jobs to a once deprived area.
Better still, Elephant & Castle property is within a mile of Westminster and a short walk to the Shard and other London sights.
Property investor buzz already lifting Elephant & Castle property prices
With such large-scale regeneration underway, you would expect there to be plenty of property investor interest − you wouldn’t be disappointed. A landmark tower, One The Elephant, has sold out well in advance of completion, its off-plan apartments fetching between £320,000 and £2.5m.
The potential for the buy-to-let landlord is clear. As well as the new leisure centre and retail facilities, a new University of the Arts campus is planned. This will provide a further injection of demographic vibrancy. And for evening entertainment, the tired looking Elephant & Castle pub is undergoing a revamp by new owners, Antic Collective. The Tate Modern, Imperial War Museum, and Southwark Playhouse are all local attractions within walking distance.
Strong capital growth with an excellent rental yield
The property investor and buy-to-let landlord invested in Elephant & Castle property have already seen strongly positive valuation and rental upgrades. However, as the 15-year regeneration project gathers pace and interest levels grow, expect further growth as demand for newly built modern homes in close proximity to key London locations grows even stronger.
Selling prices of Elephant & Castle property are already taking off, but can be expected to move higher. According to home.co.uk, the median apartment selling price is up by a whopping 25% between February 2015 and February 2016, at £617,250.
With high rental demand for Elephant & Castle property, the median rent of £2,058 for an apartment here will yield the buy-to-let investor approximately 4.0%: a very tidy gross rental yield when the prospects for exciting capital growth are also factored in.
Local estate agents report a spike in interest in Elephant & Castle property, with a wide variety of buyers. These include Far East investors, and people looking to relocate from more expensive parts of London, as well as lifestyle residents. Speaking to the Financial Times in April, Justin Bhoday of Kinleigh Folkard & Hayward said, “There’s a real mixed demographic, which is part of the area’s appeal.” Kieran Chalker of Garton Jones remarked, “Regeneration is putting Elephant and Castle on the global property map.”
To discover more about the opportunities for the property investor in Elephant & Castle property, and the strong market fundamentals that will support price growth and rental demand going forward, please call Gladfish today.