It could be time for buy-to-let investors to drink in the sweet taste of success at The Lemonade Building, the final phase of Redrow’s popular Barking Central venture in East London.
Bradley Martin, of selling agent Knight Frank, says properties in previous phases are regularly achieving rental yields of around 6.5%, which exceed those achieved in many other areas across London where capital values are higher.
“Plus with the ongoing regeneration of the area, this bodes well for future capital growth,” adds Bradley.
One landlord who invested in a one-bedroom apartment two years ago is achieving a yield of circa 6.7% and has seen his property continuously rented out during that period with no voids.
Close proximity to Barking station and a journey time to central London of just 15 minutes; Canary Wharf only 20 minutes away by train; the surrounding regeneration of Barking town centre; plus shops and other facilities on the doorstep – all of these factors serve to make The Lemonade Building a refreshing choice for landlords, tenants and owner-occupiers alike.
Wendy Wang was a tenant for 12 months and so impressed was she with the development that she’s now bought a two-bedroom property of her own.
Wendy said: “I think buying at Barking Central is a great investment; this area of East London - Stratford, West Ham and Barking - has got great potential for price growth and I’ve got in at a low entry point while regeneration is still in full flow.
“The regeneration zone where this development sits is really quite charming and it’s so convenient with five different supermarkets close by and lots of other shops. The station is very near and I can be at my desk in the city, door to door, inside 30 minutes.”
The Lemonade Building is a 17-storey block of 136 apartments. The unusual name reflects the fact that it’s close to the spot where R-Whites Lemonade was once manufactured. It’s also the final chapter of a hugely successful regeneration story.
The wider scheme, Barking Central, has created more than 500 residential apartments, as well as prime retail space, a new state of the art library and lifelong learning centre, a hotel and the unique feature of a specially created arboretum planted with 40 mature trees, which was designed to be one of the Mayor of London’s ‘Top 100 Public Spaces’.
There’s a choice of one and two-bedroom properties available, with balconies for that all-important outdoor space and fully fitted kitchens with integrated appliances including oven, hob and extractor, fridge-freezer, washer/dryer and dishwasher. Two-bedroom apartments enjoy the luxury of en-suite.
Current prices are from £143,000 for a one-bedroom property and from £179,000 for a two-bedroom apartment with en-suite, with tailor-made incentives for those in a position to proceed.
Owner-occupiers who earn less than £60,000 per annum may be eligible for the Government backed HomeBuy Direct scheme which allows them to take out an equity loan for 30% of the purchase price, interest-free for the first five years.
See Also: Property News (6699), Redrow Homes (115), Barking Homes (1), Lemonade Building (3), Knight Frank (3), HomeBuy Direct (62), Government (15)
Date Published: 04 January 2010
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