15 JULY 2015
It would seem that the one-bedroom flat is enjoying a comeback.
With prime central London looking like it is fully valued many of those looking to maximise on the price differential by moving out of London are keeping a foothold on the capital’s property market – “two for one” as Charlie Wells succinctly put it in a recent article in The Times, “a country home for their family to enjoy and a small London flat”.
In addition, with more people renting now, good quality one-bedroom flats are providing opportunities for those wanting to capitalise on buy-to-lets. Location can often be more important than size so unsurprisingly one-bedroom flats in good positions are selling well, particularly in areas that are being regenerated.
However, those investing in a flat should be mindful of where they buy. As a general rule prime London, and in particular older properties, offer good capital growth whilst areas a little further out usually attract better rental returns, particularly if there is a concentration of tenant demand such as areas popular with young professionals or students.
Newly regenerated locations, and in particular new developments, can be attractive for both investors and tenants but it’s worth remembering that too many flats in one area can make it difficult to rent out and today’s new build will be out-trumped by tomorrow’s better model.
But looking forward, London’s strengthening economy and its increasing population suggest that the renewed popularity of the one-bedroom flat should continue to prove to be a shrewd long-term investment.