You’ve probably heard that purchasing a property is one of the biggest decisions you need to make in your lifetime but procuring your second property could probably be an even tougher choice to make. With the option to now look into the local and the international market doesn’t make that choice any easier. What are the do’s and don’ts when considering the foreign property market? Most importantly, it is crucial to understand that the considerations to make when viewing at properties to personally stay in versus properties to rent differ in vast extents.
In this case, we’d like to shine light on a few pointers when looking into the London rentability market, and consider some fundamental elements that Londoners look at when choosing their ideal home so you can choose the most practical investment option.
In this article, we’d further explore the top 5 priorities Londoners have when choosing where to live and find out why the world-famous King’s Cross is an ideal location for savvy investors
Fig.1 – St Pancras Station (Source)
Top 5 Considerations when Renting a Property in London
Based on a research conducted by Knight Frank, the top 5 priorities highlighted are: 1. Good Transport Links, 2. Close to Work/Study, 3. Access to good amenities, 4. Good Local Shops, and 5. Affordability.
1. Good Transport Links
Based on a survey conducted by Knight Frank, majority of the interviewees prioritised connectivity as a key factor when choosing where to live. Logically, this translates to a higher demand for housing in areas that are near good transport links, making them more rentable, more likely to fetch higher rental rates and a higher potential for growth. King’s Cross is London’s best-connected location, with over £2.5bn spent on local transport infrastructure to service the area, and with St Pancras serving as London’s major interchange for local, national and international travel.
King’s Cross Research Document by Knight Frank
Undeniably, it is one of the best-connected transport hubs in Europe. Located in Zone 1, residents living within the neighbourhood have an easy access to King’s Cross and Euston International Train Stations, as well as King’s Cross Tube Station which covers the 6 main tubes lines in London, making it the city’s biggest tube interchange. Not to mention, London’s five international airports are all within an hour’s reach with direct services to Heathrow, Gatwick and Luton.
King’s Cross Research Document by Knight Frank
King’s Cross’ central location guarantees a comprehensive transport network, which allow residents living within the area an easy access to key parts of London. One of London’s key working districts, Liverpool Street is just 16 minutes away, and in just 9 minutes can get you to the most iconic shopping district, Bond Street. Not just that, the Eurostar is conveniently located at St Pancras station, where you could easily hop onto a train and head to Paris for a weekend of shopping and dining in just 2 hours. While living in King’s Cross, commuting time can be used to spend with your loved ones instead.
King’s Cross Research Document by Knight Frank
2a. Close to Work
As seen from the research infographics, vicinity to the workplace or institution is another notable factor that Londoners put on top of their list when choosing their accommodation. In the context of a rental property, properties that are within the locality of workspaces and companies are more likely to be rented out and fetch a higher rental price.
King’s Cross remains as a strong choice of neighbourhood for many Londoner’s with the numerous Multi-National Companies (MNCs) that has populated the area, with close to 30,000 people expected to be working in the area by year 2023. In fact, employees from these following companies have lamented that King’s Cross is their top choice of location to rent.
2b. Close to Universities
International students are a significant part of the London lettings market and make a considerable contribution to the wider economy. Many international students find it important to live close to their universities, and most of the demographic is willing to pay a premium for the convenience. King’s Cross comes across as a strong choice for these students, as seen from its close proximity to iconic institutions such as the University of the Arts London at Central Saint Martin, School of Oriental and African Studies (SOAS) and other universities, making it one of the best-connected sites for education in London. In fact, 62% of all tenancies in King’s Cross since April 2007 are notably for students.
Universities located in close proximity to King’s Cross
3. Access to Good Amenities
To meet the increasing demands in lifestyle options, quality amenities such as access to gyms, retail and lifestyle options are becoming more of a necessity, rather than a premium vantage. Survey results point that tenants value good amenities when choosing a location to live, and King’s Cross is abundant in this demand. In fact, the neighbourhood offers a variety of choices for health and wellness options. Many sport activities offered at King’s Cross Estates are complimentary, which adds value to the quality of lifestyle of tenants living within these estates.
Exercise at Pancras Sports Leisure and at Handy Side Sports Pitch
Reformer class at Moss Pilates Studio and yoga at FRAME
4. Good Local Shops
Equal to the percentage of tenants who prize living close to good amenities, 45% of tenants also value living close to good local shops. King’s Cross is now home to Coal Drops Yard which houses more than 500, 000 square feet of retail with 160 planned shops. The site is now a destination in itself with many high quality restaurants, bars, a cinema and the largest Waitrose in Central London, adding vibrancy and convenience to renting at King’s Cross, one of the trendiest locations in London.
Eclectic Stores: Tom Dixon, BA&SH & 18 Montrose
Mexican Food from Casta Pastor and pictures of Morty & Bob and The Drop
5. Affordable Rent
Affordability would always be a topic of discussion for tenants, and this wouldn’t be any different for the people living in London. According to Knight Frank’s research report, King’s Cross is predicted to have a slower growth in terms of rent as compared to Greater London – just a mild 5% difference, but it places King’s Cross as a much more attractive option to rent as compared to other locations in London.
Price forecasts are for existing homes. Property values in the new-build market may perform differently.
*Based on Knight Frank indices and boundaries, existing homes only.
King’s Cross Research Document by Knight Frank
In retrospect, King’s Cross is an ideal location for investors to consider when purchasing an investment property. It ticks all the main checkboxes; being the best connected location with extensive transportation links, close proximity to global firms and top universities, convenient access to good amenities with a vibrant retail and dining scene, and more affordable rental rates relative to other parts of London.
If you would like to find out details of highly rentable properties in King’s Cross to aid in your investment portfolio, talk to us. Simply fill up the form below and one of our trusted Knight Frank advisors will contact you to tend to your queries.