Hello Medway Property News Blog Readers,

One thing that property investors will always want to look out for is not just the town they are purchasing in, but the micro-area within that town as some areas may be better to invest in than others.

I do get regularly asked about this and I offer investment maps to whoever wants them. If you want a copy, just reply to this email and I will send it across! The investment maps I’ve made cover where is best to invest for HMOs in Bexley, Gravesend, Medway, Maidstone, Folkestone

I was reading an article the other day about how Maidstone is Kent’s most sought-after town and, amazingly, the second most sought-after town in the UK; beaten only by Basildon. I found this pleasantly surprising, and when I shared the story with some of my landlords they were pleasantly surprised too. I have heard before that Maidstone has been commented on as the capital of Kent.

Something I regularly discuss with investors when carrying our discovery calls is the best areas to invest in and I thought it would be an interesting comparison to look at Holland Road, Maidstone compared to Canterbury St, Gillingham.

Holland Road, Maidstone

Holland Road is within postcode area ME14 and there have been 52 property sales since the beginning of 1995. 35 of these were terraced houses, 13 semi-detached, three detached and one non-standard sale (which could indicate a LTD company buy-to-let).

House prices have increased from £50k in 1995 to around £301k in 2021.Overall, sold prices in Holland Road over the last year were 25% up on the previous year and 33% down on the 2018 peak of £450,500 according to Rightmove.

Looking at the breakdown of economic activity, a large proportion is in work, with 13% of the population being retired. These are important factors to review when considering rental potential, as a higher rate of full-time employees would indicate a healther rental demand.

If we look at the type of tenure (below), you will see that the majority (69%) are homeowners with the remainder being rented. This is an important factor to consider when purchasing a property to let within an area, if an area had a much higher % of rental properties that could indicate a higher supply which could have a consequent effect on reducing prices.

When looking at the ME14 postcode sector, there are 36 rental properties with the majority achieving around £1k per month. This gives an approximate yield of 3.12% taking into account the average house price of £375,873.

One additional thing to consider is the proximity to local amenities. In this case, rail stations, schools, and local hospitals.

• Maidstone East Station – 0.4 miles
• Maidstone Barracks Station – 0.7 miles
• Maidstone West Station – 0.8 miles
• Maidstone Hospital – 14m drive
• Valley Invicta Primary School At East Borough – 0.3 miles
• Invicta Grammar School – 0.4 miles
• MEPA Academy Limited – 0.4 miles
• North Borough Junior School – 0.5 miles

Canterbury St, Gillingham

Canterbury Street is within postcode area ME7 and there have been 100 property sales since the beginning of 1995.

Four of these were semi-detached, nine were leasehold flats/maisonettes, one terraced house and three were non-standard sales (which could indicate a LTD company buy-to-let).

House prices have increased from £62k in 1996 to around £186k in 2021. Overall, sold prices in Canterbury Street over the last year were similar to the previous year and 6% up on the 2008 peak of £175,125.

Looking at the breakdown of economic activity, a large proportion are in work, a chunk being students and just 3% of the population being retired. These are important factors to review when considering rental potential.

If we look at the type of tenure (below), you will see that the majority (52%) are homeowners with the remainder being rented. This is an important factor to consider when purchasing a property to let within an area, as there seems to be a much higher percentage of rental properties on this road compared to Holland Road, Maidstone.

When looking at the ME7 postcode sector, there are 102 rental properties with an average rent of £975 per month. This gives an approximate yield of 6.3% based on an overall average price of £186,500.

One additional thing to consider is the proximity to local amenities. In this case, rail stations, schools, and local hospitals.

• Gillingham Station – 0.2 miles
• Chatham Station – 1.1 miles
• Rochester Station – 1.5 miles
• Oasis Academy Skinner Street, Skinner Street – 0.1 miles
• Brompton Academy, Marlborough Road – 0.4 miles
• Burnt Oak Primary School, Richmond Road – 0.5 miles
• Medway Maritime Hospital – A seven-minute walk

What’s Better For Investors?

So, in conclusion, where would I suggest would be a better place for investors?

Well, this does entirely depend on your strategy. If going for an HMO, I would certainly suggest that Canterbury Street in Gillingham would be my preferred choice.

Certainly, when we look at the increased number of students and, an additional statistic is how 20% of the population work in healthcare as opposed to 10% for Holland Road in Maidstone (this could reflect Canterbury Street’s proximity to Medway Maritime Hospital).

Let’s look at single lets now and I would, again, highlight Canterbury Street in Gillingham for the rental yield, demand, and purchase price. With over 50% of the population renting compared to just 25% for Holland Road, there is clearly significant demand.

However. An interesting area to point out is the phenomenal year-on-year house price growth that Holland Road has seen (a whopping 25%!) compared to the relatively flat house price growth Canterbury Street has seen. If we take the long-term trend, Canterbury Street wins, however with the housing market being the way it is this will be one to watch!

I’d be interested to hear your thoughts. These are just my thoughts, so I’ll be interested to hear your opinions and experiences! The best way to get in touch is by messaging me through LinkedIn.

Hasan