Alex is living in a large one-bedroom flat in a mansion block near King’s Cross station and is considering moving, because of the disruption that regeneration work on the area will cause. Is it better to bail out now and sell, or rent the property and reap any capital gains in the long term?
Karl Trajer, residential lettings manager at Hurford Salvi Carr’s Clerkenwell office, says: The long-awaited regeneration of King’s Cross is now well under way and, despite recent strong price rises, the area is still one of London’s leading property investment prospects. Prices are at present lower than the surrounding areas of Islington, Soho and the City, providing real value for its Central London location.
There are many new developments which are selling well because of their quality and value compared with elsewhere in Central London. Buyers are also attracted by the area’s superb transport links, as well as the range of shops and leisure facilities on the doorstep.
With the creation of plenty of office accommodation at the Regent Quarter development, we are already getting growing interest in the Bloomsbury, Clerkenwell, Islington triangle from investors and from people who want to live within walking distance of their new offices. I think Alex’s flat would achieve from £300 to £325 a week, which should cover mortgage payments.
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Over the next ten years the King’s Cross area is set to benefit from a massive investment programme. Planning has been submitted for 67 acres of land just north of the train station, including a business development that is expected to generate 30,000 jobs.
The established Regent Quarter has already had an impact on the demand for rented accommodation; that will lead to higher rental values as existing supply is exhausted. With the area due to become one of the City’s major transport hubs — the Eurostar terminal opens in 2007 — capital values of residential property will inevitably increase.
If Alex sold the property and bought outside the area, it would be hard to find a property to gain in value as strongly as his existing home.
Hurford Salvi Carr, 020-7566 9444
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LORNA BLACKWOOD
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