My recent blog explained how pied-à-terre’s in Tottenham had become very popular with many London commuters living outside of the M25. Recently, however, I have seen a surge of interest for those wanting Pied-à-terre’s in London, looking in Enfield and I believe that this is due to the following reasons:
- Personal use i.e. when working late or for evening engagements in London
- Housing for children studying in London
- A temporary base when using one of London’s airports
- Long term investment
- Gaining a foothold in London – fear that in future decades this will be unaffordable
Buying a pied-à-terre in Enfield – Advantages for the family home buyer
Enfield is an interesting area because it could serve both as a good pied-a-terre location, as well as a quasi-commuter town for Family Home buyers. It certainly has many of the qualities that Garrington looks for in both categories:
- In terms of value for money prices are still below £500 per square foot and in some cases, even below £400 per square foot
- Gross rental yields of up to 5% are achievable for the right property – rental yields above 4% are standard
- Not only does Enfield represent good value for money, but the absolute prices are quite low. One can find many 2 bedroom apartments below £300,000, which allows the creation of an investment portfolio with limited funding. Even 4 bedroom houses can be found for under £750,000, which is why we believe Enfield has the additional benefit of acting like a quasi-commuter town for Family Home buyers, although it is located inside the M25
- Enfield is full of open, green spaces and small parks, which makes it ideal for families and young professionals who want to enjoy life away from the urban bustle
- Enfield is undergoing a regeneration plan which is especially focussed on the Eastern neighbourhoods such as Leeside and Ponders End. It will also include work in the central area around Enfield Town station
- While there are no tube lines in the area, there are extensive rail stations such as Enfield Town, Enfield Chase, Enfield Lock, Southbury, Brimsdown and Ponders End.
- Crossrail 2 should extend through the Eastern part of Enfield, stopping at Ponders End, Brimsdown and Enfield Lock
Garrington’s experience with pied-à-terre’s
Over recent years Garrington has had extensive experience with buyers in the North London areas just South of the M25.
In the immediate vicinity of Enfield, Garrington have acted for buyers in Enfield itself, but also in Cockfosters just to the West, Tottenham just to the South and Loughton to the East.
This Northern arc has been very popular with our clients and overall demand for these areas has been increasing as well. Furthermore, with Outer London prices outperforming Central London prices in recent years (annually Outer London prices are approx. 10.7% and Central London prices are approx. 4%), many areas in Outer London have become unaffordable already. Furthermore, London’s population continues to grow by roughly 100,000 per year and is projected to do so every year until 2041, adding another £2.5m inhabitants.
I believe that buyers are increasingly focussed on the Outer Zones that still represent good value for money and low absolute prices. Enfield is not only attractive for buy-to-let and portfolio investors, but also for Family Home buyers, who will benefit from a shorter commute time to Central London.