Why Watford is One of the Best Spots Next to London to Invest in 2022

Watford, the largest town in Hertfordshire, offers an array of independent boutiques, big brand shops and outstanding areen spaces. Surrounding Watford are 77 golf courses and 8 Michelin rated restaurants, making Watford a desirable place to live and work.

Watford has outperformed London, making it the perfect ownership and investment opportunity.

Watford is One of the Best Spots Next to London to Invest in 2022
  • House prices have grown 8.8% in the year to May 2021.
  • Rental growth of 7% in the year to May 2021.
  • Gross rental yields of circa 5%.
  • Strong earnings growth locally set to maintain a robust rental market.

With access to the London Underground and Overground, Watford has great transport links. Just 15 mins by train from London Euston. Watford is perfectly placed to enjoy the best of rural Hertfordshire, as well as the famous sights of London.

Over the next decade, there is more than £1.5 billion going into regeneration projects which will transform the face of Watford. This investment is already attracting large companies including the head offices of T.K. Maxx, Ralph Lauren, PwC and KPMG.

Connected to The City and Beyond

  • 15-minute direct train from London.
  • Located in the heart of the golden triangle, centred between Oxford, Cambridge and London universities.
  • Watford is aiming to be carbon zero by 2030.
  • Average house is 33% less expensive than London.
  • 3,500+ businesses in Watford, employing over 57,000 people.
  • 12.5% population increase in the next 10 years.

What to expect in 2022, A Year of Significant Growth for the UK Property Market

After what was an exceptional year for UK Property which saw prices rise consistently across the country and further exponential growth forecasted over the next 5 years, knowledge on where opportunity lies and where the next growth investment spots are is crucial.

uk residential forecast

If you are considering your next investment or purchasing a property for the first time, One UK Properties would be delighted to help and provide our expert advice and consultancy services to help you right from where to buy to picking the right solicitors and ensuring a hassle free experience.

Get in touch so we may help you start 2022 with a strong property portfolio plan.

Hedge Rising Inflation with UK Residential Real Estate

As we face inflation on the horizon and economically uncertain times, what type of asset class could hedge rising inflation is a question every investor would have at the front of their mind right now. At One UK Properties, we want to help you understand why inflation is an investors friend and how you can use it to your advantage.

Under most circumstances, an inflationary environment leads to higher rents and higher property prices. Owning residential real estate is considered to be a great hedge against inflation due to three reasons:

1. Rents Rise With Inflation.

UK Housing prices

Inflation benefits real estate investors who are earning income from their rental properties, specifically property sectors with one-year tenancies like multi-family properties such as apartments, because higher home prices often equal higher rent. If you’re able to adjust your rent up while taking into consideration a 3% yearly inflation, this can create the opportunity for increased money in your pocket.

2. The value of your property rises with inflation

Uk house prices increasing

Property values over time tend to stay on a steady upward trajectory. Most of the properties that lost value when the real estate bubble burst in 2008 were back to their pre-crash prices in less than a decade. This means they can keep pace or exceed inflation in terms of appreciation.

3. The debt on your asset is devalued as the value of that debt decreases with time

The effect of inflation on debt is that it decreases it over time. As a property price rises over time, it lowers the loan-to-value of any mortgage debt, acting effectively as a discount. As a result, the equity on the property increases, but your fixed-rate mortgage payments remain the same.

UK inflation

That said, investors need to be wary of high-inflation environments, primarily because the cost of borrowing will increase, putting downward pressure on your cash flows and demand for real estate if you want to liquidate. It also makes new real estate development more costly.

With more positives than drawbacks, UK residential real estate in an inflationary environment is a real opportunity for real estate investors to hedge if they make smart acquisitions.

Please contact us for further information on properties in areas of higher appreciation and higher rental yield.

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