MEDWAY PROPERTY GUIDE
2019
2
Medway Property Guide 2019
Buy-to-let: Make money in Medway There is a strong demand for UK property and the market is continuing to grow – nowhere is this truer than in Medway. The Private Rented Sector (PRS) has shown resilience over the last year with no serious slowdown in property transactions, house prices or rental yields in the majority of regions in England. In particular the market in the South East, with Medway at its heart, has been going from strength to strength. The simple reason for the continuing
banking crisis and the idea of purchasing
In addition, tenants are abandoning the
growth of the market is that more people
a home is now nothing more than a pipe
capital in growing numbers. The latest data
are renting than ever before and supply is
dream for many. Even the introduction of
shows that migration out of the capital is
at historically low levels. The proportion
measures such as Help To Buy aimed at
at its highest level since records began in
of people who rent has doubled since 2001
helping young people get on the housing
2011 and that the number of people leaving
and more than five million households
ladder have, in hindsight, done nothing
London annually has increased by 55% in
now rent. This trend is expected to
more than increase demand to an even
the last five years.
continue in the future, with Knight Frank
higher level. With that in mind it is no surprise that
predicting that almost a quarter of all households will call the PRS home by 2021.
The one notable area which has troubled
many landlords are looking outside the
the market is London. Traditionally the
capital for their next investment in an
The increase in renting is most pronounced
capital city has been known as the UK’s
attempt to get ahead of a trend and make
amongst young people, those between
buy-to-let hotspot but that reputation has
the most of their money. In turn, the
the ages of 25 and 34, who make up the
been in decline for some time thanks to
numbers show why so many are investing
biggest portion of the market and have
falling rental yields and property prices
heavily in areas of the South East such as
been dubbed ‘Generation Rent’. Wages
many consider to be obscene.
Medway.
have barely grown for a decade since the
St Mary’s Island, Chatham, Kent
3
“The median monthly rent in Medway has risen 15.4% since 2014” Valuation Office Agency, 2018
Of the many young renters leaving
risen by 15.4% since 2014. This is impressive
London in the last year as many as two
enough, but the median rent for family
fifths headed to the South East according
homes managed to outstrip even this, with
to Hamptons International. Of those, the
recorded figures showing growth of 21%
Financial Times reports that Medway
over the same time period.
55% The number of people leaving London annually has increased by 55% in five years Financial Times, 2018
saw almost 5,000 new arrivals over the same time period, putting pressure on the
When you add in predicted house price
existing housing stock and increasing
growth in the commuter belt of 17% by
competition for the most desirable homes.
2021 it is clear that Medway is a fantastic opportunity for investors looking to expand
However it is not just young professionals
or diversify their portfolios.
moving to Medway – the area is also extremely attractive to families. Data from the Valuation Office Agency shows that the median monthly rent in Medway has
38%
South East, United Kingdom
Almost two fifths of all Londoners leaving the capital moved to the South East in the last year Hamptons International, 2018
Essex
Medway
London
Surrey
East Sussex
Kent
5,000 Almost 5,000 people left London for Medway in the last year Financial Times, 2018
4
Medway Property Guide 2019
Why invest in Medway? The conurbation of Gillingham, Rochester, Chatham, Rainham and Strood is known as the Medway towns and is one of the most desirable places in the UK to call home thanks to a waterfront setting and an easy commute into London. Medway is a famous maritime region and
For those residents who don’t want to leave
was a major shipbuilding destination for
the beautiful Medway environs, more
hundreds of years. The position on the
than £1bn of investment into the area has
Thames Estuary made it the perfect venue
opened up a whole range of opportunities
for a Royal Navy Dockyard at Chatham and
for business, employment, leisure and
the influence of this history can be seen
retail. This includes the Thames Gateway
across Medway to this day.
regeneration programme, one of the largest
Rochester Castle in Kent
Rochester
developments in Europe, which is turning The dockside views and a location less
the region into a world-class eco-region.
Strood
than an hour from London St. Pancras Station by direct train make places like
The local educational institutions are
Chatham incredibly appealing to young
equally impressive. The Universities
professional commuters and families alike.
at Medway campus was established
In addition, residents of Medway have
in 2014 and is now home to more than
direct access to three major motorways
10,000 students enrolled in the University
– the M2, the M20 and the M25 – which
of Greenwich, University of Kent and
open up the whole of the South East,
Canterbury Christ Church. It is easy to
including the Bluewater Shopping Centre
understand why so many graduates from
which is only a short journey away.
this campus choose to stay in the area
Gillingham Rainham Chatham
West Malling
Aylesford
Maidstone
following the end of their studies.
Journey times to London St. Pancras Station Gillingham
Chatham
Rochester
Strood
42 minutes
36 minutes
33 minutes
32 minutes
5
The Medway Towns The population of Medway is projected to increase by 300,000 over the next decade, with each town having it’s own particular appeal. Rochester Cathedral
Thames Estuary
Sheerness
Sittingbourne
Faversham
Medway, Kent
London St. Pancras Station
Chatham
Gillingham
Chatham is one of Medway’s most popular
Another burgeoning hotspot in Medway
towns thanks to its waterfront location
is Gillingham, a town known for having
and excellent transport links. As well as
one of the most important retail centres
a complete remodel of the train station,
in Kent. It is popular with residents of the
the local area is also benefiting from the
Medway area, with over 200 shops on
Chatham Waters development which is
offer. In addition to this, people can visit
creating a superb modern residential,
the traditional street markets which take
educational, leisure, retail and commercial
place in the town centre every doesn’t
destination on the docks.
make sense.
Rochester
Strood
A picturesque town home to a cathedral,
Strood is also a fantastic opportunity for
Norman castle and stunning views over
investors and, although it is considered
the water, Rochester is an extremely
less scenic compared to neighbouring
popular place to live. The town is in the
town Rochester, it is more convenient for
midst of millions of pounds of regeneration
commuters with the journey time from the
with approximately 1,300 homes currently
town to London approximately 35 minutes.
in construction.
Hundreds of homes and businesses are being added to Strood Riverside as part of the regional regeneration.
Medway Property Guide 2019
6
Choosing the right property When investing in buy-to-let property there are many factors that landlords must consider to ensure that their investment is profitable. One option which interests many is the prospect of buying off-plan thanks to the potential long-term benefits on offer.
21% A furnished home can achieve rents up to 21% higher than an unfurnished one On The Market, 2018
Many off-plan properties are sold at a
Another good example is the Chatham
lower price than those which are already
Waters regeneration area which is set to
on the market. This means that, once
create an appealing new destination. The
your off-plan property is complete, you
mixture of a unique waterfront location
will have bought at a large discount.
and a whole wave of new residential,
Additionally, an off-plan property is less
commercial, educational, leisure and retail
likely to have serious maintenance issues
facilities makes this site the perfect place
to contend with thanks to it being brand
to invest and appeal to young professional
new.
tenants who commute into London.
Location is another key factor to consider
A final thing to consider is whether you
and should be a top priority. It makes
wish to furnish your property or not.
sense to look for a property which is in a
Purchasing furniture is of course an extra
regeneration area and has proximity to
expense, but on the whole evidence
useful transport links. For example, if your
shows that a furnished home will be able
property is close to the high-speed trains
to achieve a higher rent – up to 21% more
which operate through Medway and give
according to On The Market research. So if
access to London St. Pancras in under an
you are looking longer term gains then it is
hour then it is likely to be attractive to
probably worth investing in furniture.
£18,600 Houses near the best schools are worth an average £18,600 more BBC, 2017
tenants.
£22,000 Properties near a national supermarket increase in value by an average of £22,000 M2 Motorway to London
Lloyds, 2017
7
Knight Knox Knight Knox is an established property consultancy with a particular focus on city centre residential market. Our approach is unique in that we specialise in many different parts of property development and investment, all of which are vital services for the benefit of individual private clients and small companies within the UK’s private rented sector. By identifying land opportunities either for
With departments specialising in land
ourselves or on a joint-venture basis with
acquisition, design, marketing, financing,
leading developers, we design, implement
lettings, property management and sales
and bring our product to market in a
we truly are one of the few companies that
cost-effective way which allows clients to
cover all aspects of the property life cycle.
ensure they see the best-possible returns in competitive market sectors.
“Knight Knox makes the act of buying property easy and stress free. I would highly recommend them to anyone” Mr K Graham, Knight Knox investor
96 Total number of UK projects launched
65+
£1bn+
Number of completed and occupied developments
Total value of all UK projects launched
How to invest in Medway? X1 Chatham Waters Kent The Chatham Waters masterplan is one of the most ambitious waterfront transformation developments in the UK. Already well underway with retail, leisure and education phases delivered, this will be a world class neighbourhood on the banks of the Thames Estuary. Awardwinning developer X1 and Knight Knox are
proud to be able to deliver 199 stunning apartments as part of the wider masterplan which will be perfect for commuters and families thanks to the location less than 45 minutes from London St. Pancras by train. Enquire today for more information about this commanding dockside development.
Commuter belt apartments starting from £220,000 Please visit www.knightknox.com or call +44 (0)161 772 1370 for further information. Figures correct at time of print (July 2019)
7
Contact us Whether you are looking for a high-yielding investment property or would like to enquire about becoming part of our extensive Agents Network, please contact us to set up a meeting to further discuss your requirements and determine how Knight Knox can best help you. Get in touch Address: Knight Knox, Quay West at MediaCityUK, Trafford Wharf Road, Manchester M17 1HH Tel: +44 (0)161 772 1370 Fax: +44 (0)161 241 5360 Email: info@knightknox.com Find us online Website: www.knightknox.com
The content contained within is correct at the time of publishing (July 2019). 07-19 V2