Why does the increase in London's property prices mean great news for landlords and investors in Hemel Hempstead?

I have recently been speaking to a fellow developer who regularly invests in properties around He...

I have recently been speaking to a fellow developer who regularly invests in properties around Hemel Hempstead and the surrounding areas. We were having a chat about the opportunities in the Hemel Hempstead property market.

Hemel Hempstead is a more affordable location for professional who cannot afford the rise of house prices in London. You are spoilt for choice with the connections to London! There's the M1 and M25 just up the road, there's also the London Midland services that take you direct to London Euston in a mere 26 minutes on the fast train. From standing on a chilly platform you can be in your office in London in under 30 minutes from Hemel Hempstead.

The most reasonable property we found in zone 6 was on the market for £174,950 and it was a studio flat in a fairly moderate condition in a convenient location. Compare that with a 1 bedroom in the sought after area of Boxmoor in Hemel Hempstead, which is a short walk down Fishery Road to get to the train station and town centre for £150,000 there is no comparison.

To rent a studio flat in zone 6 you will be expected to pay an average of £850pcm+. The average rental value of a studio flat in Hemel Hempstead is £695pcm. Prospective tenants can get from Hemel Hempstead to London Euston within 30 minutes whereas from zone 6 it takes 45 minutes approximately. The travelling costs are another issue as the travel card difference from zone 6 to London Euston is £150 more than Hemel Hempstead.

Miles Shipside, director of internet property portal Rightmove, says prices are picking up further out from London in the South East of England as families look for more affordable homes within a commuting distance of the city. The trend of moving from London zones to the outskirts is unquestionably the most cost and time effective choice for commuters.

The table above shows a market snapshot of the HP2 postcode with advertised property price ranges compared to rent ranges and the gross yields that would result. HMO's excluded. Updated 10.03.2015

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