Cambridge Road Estate outperforms North Kingston River Roads housing market by 105%

Following a discussion with a local landlord who lives in one of those nice properties backing on to the Park, off Park Road in Kingston, we got chatting about his two buy to let properties in Kingston and how property in the Cambridge Road estate, where one of properties is, (around Burritt Road and Eureka Rd area) was so different to the Victorian built houses in the North Kingston River roads area (on the left hand side off Richmond Road as you drive to Richmond – roads such as Lower Kings Rd, Eastbury and Chestnut Roads), where he owned the other. We got talking about the two properties in both areas and he wanted some advice on where to buy the next one. I did a comparison between the two and was surprised to find that the property market in the Cambridge Road Estate had outperformed the North Kingston River roads market by 105%!


The average price of an apartment on the Cambridge Road Estate is £156,700. When you consider the average rents that are achieved in the Cambridge Road Estate are £972 per month, this gives us a yield of 7.4% per year. However, yields in the North Kingston River roads are only 3.6% per year (because the average property on the River Roads is worth £769,400 and the average rent is £2,300 per month, making that 3.6% yield. (a 7.4% yield is 105% higher than 3.6% yield).

This, however, is a great example of annual yield/return not being the only factor when choosing an investment property, as you should also consider how much the value of the property goes up in the long term. In the last 10 years, property values have only risen on average by 43% in the Cambridge Road  Estate, which is very impressive. However, average property values on the North Kingston River roads development have risen on average by  84% in the same time frame. So, if you are investing in Kingston property, do you want capital value or yield?

If you would like some advice about buying to let, be you a landlord with a portfolio or someone thinking of investing in rental market, please come and see me at our office on Kingston Hill, opposite Kingston Hospital.


June 2014