Investing in Property
Property Investments in Watford
If you’re interested in property investment, then look no further than Watford. It’s a town and borough contained within the county of Hertfordshire, close to London. Watford’s proximity to the capital and transport links land the town firmly in the heart of the commuter belt, making it a fantastic location for property investors to discover.
Whilst Watford is technically outside of the Greater London area, it's considered to be part of the larger London metropolitan area, branching out as part of the capital's urban sprawl. This makes Watford an extremely popular place to reside, providing a fantastic range of work and employment opportunities, as well as its close connection to London and transport links. Watford was voted as 'London's Best Commuter Town' in 2021, showing that it's an area full of investment potential.
At Brite Developments, we specialise in real estate funding and sourcing lucrative investment opportunities for property investors and developers, working hard to give you the best results possible. If you'd like to find out more about us, send us an email or - even easier - fill out our online contact form and we'll get in touch straight away!
Why Should You Invest in Watford?
There are many different reasons as to why you should choose to include Watford within your property portfolio, with the town offering a lot of opportunities for savvy investors. The town – measuring 8.301 square miles – currently has an estimated population of 102,300 people, and looks set to continue to rise.
Several areas, including Nascot Wood – the largest residential area in the town – make Watford a prime location for investors.
Key Reasons to Invest in Watford
More affordable property – Whilst, compared to other parts of the UK, Watford isn’t the cheapest area to live in, it’s much more affordable than London itself. It being a cheaper alternative to living in the capital has led to its growth in investment opportunities.
Cheaper cost of living - Another fantastic benefit of investing in the property market in Watford is that the overall cost of living is cheaper than London, which will encourage more people to move there (particularly in light of the current cost of living crisis). Living in Watford provides all the benefits of London without the cost.
Excellent transport connections - With Watford being located so close to London, it has a lot of fantastic public transport links and access to London’s six major airports. It's also close to the M25 (or Orbital Motorway), allowing road commuters to easily drive into London each day.
Watford is quite compact, making travel in and out especially easy. It has an extensive bus and train network, with five train stations and a London Underground station going into the capital.
Outstanding employment opportunities - As a commuter town just 15 miles north of London, Watford has a plethora of employment opportunities. Several big businesses have their headquarters here, including the Camelot Group and the Hilton Regional Office for Europe.
Over 5.8 million people work in the capital, with many of those people commuting into the city from outside the boundaries of Greater London. This alone makes conveniently close towns like Watford attractive for investors.
Watford is a cultural hub - It's easy to get into London from Watford to soak in the culture and attractions of the city, but Watford also has its own cultural hotspots, seeing an influx of tourists every year.
One of the main tourist attractions is the Warner Bros Studios Tour, taking visitors through the sets from the Harry Potter films.
Other popular places to visit include the Watford Colosseum, the Vicarage Road Stadium - home to Watford FC - the outdoor shopping mall, Waterfields Shopping Park, and the Watford Business Park.
Investment opportunities - Watford is a fantastic town for investment, achieving top ranking as one of the UK's best commuter locations. According to research conducted by Dataloft, around 45% of people moving to Watford move there from London, with a predicted price growth of 17% between 2021 and 2025, compared to London's predictions of 12.6% during the same time period.
Other statistics from Dataloft show that Watford had an annual price growth of 6.6% between 2020 and 2021, despite the pandemic, with London trailing slightly behind at 6.1%.
It’s very clear to see that Watford is a town with high prospects for those looking to expand their property portfolios. If you’re considering investing in London, Watford might be a better choice as it has much cheaper property prices for those with lower budgets.
The Current Property Market in Watford and the Future Potential of the Town
Watford’s property market has grown rapidly over the last few years, and it’s only set to rise in the future, as the previous statistics from Dataloft show. Other statistics based around the housing market in Watford speak for themselves – in August 2021, Watford recorded the third-highest average house price increase in the country over a ten year period.
House prices rose from an average of £203,973 in 2010 to a whopping £356,443 in 2020, with property prices only set to rise further in the future. It's predicted that, by 2030, the average property price in Watford will have risen to around £622,884.
The Watford Observer reported the official land registry figures earlier in 2022. According to their report, house prices had increased by £8,000 in May 2022, representing an increase of over 2.1% in one month. This shows that there is a huge demand for housing in Watford, with property prices increasing despite the current cost of living crisis.
The Rental Market in Watford
Another aspect of the housing market in Watford relates to rental property, which is a valuable addition to any investment property portfolio. As previously shown, housing in London and the commuter towns surrounding the capital is very much in demand at the moment, with a shortage of available properties to buy.
In 2020, statistics found that Watford had one of the smallest totals of property sales per capita, when compared with the rest of the UK. With house prices increasing - especially in the south east, which has seen the highest surge - less people are able to buy their own homes, so the rental market has started to boom.
Rental income can provide a good income for any savvy investor, also helping you to pay off the mortgage of the property in question too. The average rent in Watford is £1,164 per month, according to HMRC's Valuation Office Agency, which is around £266 higher than the average rent across the rest of England.
How Will the Cost of Living Crisis Affect Watford’s Housing Market?
It’s important to do your research before investing in property, taking into account current events and the potential future of the property market. Whilst stability within this market does fluctuate, economists and financial experts can make an educated guess at what the future holds.
The cost of living crisis is a financial crisis that is sweeping the globe right now, having some profound effects within Europe, particularly in the UK. The recent mini-budget announcement by the current British government saw the pound drop drastically against the dollar, with mortgage interest rates rising rapidly.
Because of these events, there have been fears that house prices might drop. However, this isn't necessarily a bad thing, as it allows potential investors to buy property for cheaper prices, which can then be sold at a higher price point once the market recovers.
Our Investment Properties in Watford
At Brite Developments, we currently have one development in progress, with more to come in the near future. The Clarendon is our flagship building in Watford, featuring 168 luxury private apartments, ranging from studios all the way through to our selection of penthouses. The Clarendon truly lets residents live in the lap of luxury, featuring a fantastic array of amenities:
Private cinema room
Sky garden on the 25th floor
Located only 15 minutes from London Euston via national rail connections, The Clarendon is based in Watford town centre, featuring a thriving nightlife and a selection of artisanal craft shops, as well as the expected high street stores.
Those wanting a bit of greenery will be overjoyed to discover that there are eight parks within walking distance of the building, with the Chiltern Hills being only a short drive away.
With a £1.5 billion investment coming to the town centre in the next few years, Watford is only set to become more popular - if you want to find out more about The Clarendon, contact Brite Developments today!
Interested in Property Investment in Watford? You’ve Come to the Right Place!
At Brite Developments, we’ve got over 30 years worth of experience in the property development and investment market, working through several economic downturns and recessions, as well as housing booms. Because of this, we know exactly how the property market works, so you can trust us to handle your property investment needs in a professional and agile manner.
We can help you through the entire property investment journey, whether you're an investor, a developer, a buyer or you just need a little more information before starting your journey with us.