High yielding property investments in the UK

high yielding investments in London

For many years now, London real estate has been one of the world’s top mid to long-term investments with properties generating huge capital growth and sustained rental yields in one of Europe’s biggest tenant markets. 

As we move through 2022 and search for a new normal in a post-covid world, it is more important than ever that investors are familiar with the current investment trends in the UK capital.

Here we highlight 5 real estate investments that could be the toast of the capital for many years to come. 

London high yielding property investment: Empire One, Wembley

Very few apartments remain in this exclusive Camrose development. 

Following a very successful investor launch, Empire One was 40% sold within weeks, and now the few remaining properties – and early resales – are attracting much interest from both domestic and overseas investors familiar with the London real estate market.  

There are few homes in Wembley Park – maybe even London – that offer both investors and tenants such a combination of individual personality and uncompromising attention to detail. This is particularly apparent in Empire One’s stunning communal roof terrace. It’s a modern glazed balustrade that spans the perimeter so you can still enjoy the panorama of London while relaxing with a sunset drink or morning meditation.

Under the terrace, you’ll find a bespoke selection of 38 brand new studio, one, two and three-bedroom apartments within the development, which sits at the heart of the Wembley Park Masterplan – a massive and impressive redevelopment that will eventually comprise £1.7 billion worth of investment, over 7,500 new homes and 8,000 new jobs.

It’s in part due to the potential capital growth and tenant demand driven by the wider masterplan investment that Empire One has been such an investment success so far, and looks set to be in the years to come too.

Empire One is the latest scheme from Camrose London, a developer that has already delivered over 10 real estate projects in the UK capital city.

London high yielding property investment: The Clarendon, Watford

Watford is fast becoming one of the prime locations to secure a redevelopment project in the whole of the London area. It’s one of the first major towns encountered outside of the traditional London market, which makes it commuter heaven and a place of highly prized real estate assets.

Commuter heaven has equalled some miraculous capital growth too. In 2010, Watford’s average property price was £203,973, ten years later it was £356,443, but forecasts predict an astonishing further 75% rise in the next 10 years – by 2030 your average property price in Watford is set to reach £622,884.

The Claredon is ideally situated to benefit from that and completes in 2024. The 25-storey, 168-property development is surrounded by the streets, cafes, restaurants and pubs that make Watford and surrounding leafy Hertfordshire so popular.

Investors will find that the properties themselves in the development are equally appealing. Each of the studio, one and two-bedroom apartments are all finished to a high quality and high specification.

If you’re an investor after something a little bit special, there may be some of The Clarendon’s penthouses available too.

Communal facilities are highly important to the tenant market, and The Claredon is not lacking. Each property comes complete with access to the buildings, private cinema, gym, and stunning rooftop sky garden.

London high yielding property investment: Colindale Gardens, North London

Colindale Gardens offers a lot to investors looking for London property that’s not simply a unit within an apartment building.

The unique development in the heart of North West London consists of studio, 1, 2, 3 & 4 bedroom apartments and townhouses – each with private outside space and set within 9 rare, open, landscaped acres. 

All Collindale Garden properties are fitted with, and finished to a high, ready-to-move-in specification. Furthermore, all residents have access to the scheme’s gym and concierge services. 

You’ll find the properties just 22 minutes by train to Kings Cross, and less than half an hour to Central London on the Northern line – it’s just a short walk to Colindale Tube station. As well as the leafy landscaped grounds, residents will also benefit from the nearby 4-acre park, as well as Collindale’s many amenities.

As a residential location, Colindale is undergoing a stunning transformation, with significant investment funding forecast and scheduled. Plans will bring new high-quality homes, amenities, services, facilities and transport improvements to both Colindale and the surrounding areas of Brent Cross, West Hendon and Cricklewood. These plans are likely to underpin further capital growth in the coming years building on what already has solid investment performance in the area. The average property price in Colindale has increased from £342,000 in 2015 to currently stand at just under £432,000 – that’s a 26% return in just 7 years without taking rental income into account.  

The whole Collindale Gardens scheme is a development from Redrow homes – one of the UK’s largest property developers and very popular among British homebuyers. That said, Collidale is the only current Redrow scheme in the capital, so demand could be higher than normal. 

London high yielding property investment: Graphite Square, Vauxhall

Graphite Square is a new mixed-use residential and co-working scheme in Vauxhall that’ll deliver 161 homes.

The stylish and characterful homes are from developer Third.i – a relative newcomer to the London market who have extensive real estate operations in Australia and Singapore and a current development pipeline of £2.3 billion.

The Zone 1 development, very close to the River Thames, also houses 80,000 sq ft of co-working space over three floors – ideal for modern hybrid working. Furthermore, this may make it very popular with international students, which is very pertinent because Graphite Square is very close to many of London’s universities. Indeed, Vauxhall is one of London’s most central locales, just 8 minutes from Oxford Circus by tube, 22 mins from Canary Wharf along the river, and no more than 40 minutes away from any of London’s three airports.

Graphite Square may also appeal to investors looking to secure an asset with heritage. The original site of Graphite Square was in fact the birthplace of live outdoor entertainment. Originally a manor house dating back to the 13th century, by 1660 it had progressed to open much of its 11 acres as a pleasure park, by the name of Spring Gardens, to the public. Famed London diarist Samuel Pepys actually noted that he went “by water to Foxhall, and there walked in Spring Gardens.

As well as its historical significance, the future is also looking bright for Vauxhall investments with capital growth estimated anywhere between 18-25% and a current estimated rental yield of 3.63%.

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London high yielding property investment: Orchard Wharf, Canary Wharf

Orchard Wharf is a mixed-use development with a primary focus on high-class, high specification residential – exactly as you would expect from an investment opportunity in the heart of the Canary Wharf Docklands area.

It’s an area that is home to the 16 largest banks in the UK. This subsequently leads to E14 in Canary Wharf being named as the UK postcode with the highest average salary – not surprising with Canary Wharf now employing more bankers than the City.

There are 338 1, 2 and 3-bedroom apartments, duplexes and penthouses within Ochard Wharf that are completing right now. At 23 floors high, investors will acquire assets which can offer impressive panoramic skyline views. 

Furthermore, there is access to three private landscaped roof gardens, extensive ground-level courtyard gardens, and a contemporary outdoor pavilion – all in all, Orchard Wharf looks set to live up to its name.

From an investment perspective, growth prospects in the Canary Wharf area look set to remain strong, with notable initiatives including the multi-billion transformation of the Royal Docks, which is set to become London’s third financial business district.

Orchard Wharf is the latest scheme delivered by Galliard. Galliard is a developer that has become synonymous with London and UK real estate in general, with investors assured by their formidable scale and track record: 6,905 homes under construction, 10,000 + units in planning and as of April 2022, a £3.95 billion portfolio value.

Acquiring top investments in London 2022

If you’re looking to know more about any of these top investments in London 2022, or want to cast a further net in the future, do let us know your requirements and portfolio needs.

Chestertons has operated within the prime London real estate market for many years and has specialised in helping overseas investors secure timely acquisitions with strong short, mid, and long term growth potential. 

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