Focus on Nine Elms

Landlords and investors in London property often get enticed by rental buzzwords like regeneration and redevelopment but in the case of Nine Elms, the appropriate term should be “total redefinition”.

This part of the Thames shoreline incorporates the southern approaches to the Lambeth, Vauxhall and Battersea bridges and is situated directly across the river opposite upmarket Chelsea. Formerly a sprawling network of commercial units and railway junctions, it desperately needed an imaginative reboot, which has duly arrived in some style and not without controversy.

A £15 billion revamp in Nine Elms will bring a good deal more available accommodation to the SW8 London postcode which means that landlords will have to guard against complacency as multiple units enter the market at the same time. We will report on the impact of this further on but first let’s take a look at how the new shoreline is taking shape.

The Nine Elms waterfront is marked by two mighty architectural statements that immediately put the area on the map. The Tower at St George Wharf and Battersea Exchange are landmark property developments of immense scale and imagination. St George Wharf has quickly become a popular riverfront feature with its gull wing roofs and 48 storey tower while Battersea Exchange utilises the power station’s iconic four chimney silhouette to dramatic effect. This is prime riverfront territory where triplex penthouses go for £8.5 million but there is a wide scope of properties available for the smart property investor to choose from. One, two and three bedroom flats can be obtained in St George Wharf for £549,000, £675,000 and £1.5 million respectively, although the prices tend to rise sharply as you go further up The Tower. A two bedroom apartment in The Mercer, a particularly fine part of Battersea Exchange situated next to Battersea Park, is available for £835,000.

Rental yields

St George Wharf

Studio   £500 per week

One bedroom   £650 – £700 per week

Two bedrooms   £850 – £900 per week

Three bedrooms   £1,300+ per week

Battersea Exchange

Studio   £390 – £420 per week

One bedroom   £495 – £600 per week

Two bedrooms   £650 – £800 per week

Three bedrooms   £850+ per week

The area in between these two developments is dominated by the new American Embassy building and it was the decision of the US government to relocate here that made people sit up and pay serious attention to the potential of Nine Elms as a destination. A combination of space, river views and a Zone 1 Tube location will always be a draw for diplomatic or corporate professionals, especially as there are three impressive property schemes to choose from.

Riverlight, Embassy Gardens and One Nine Elms occupy the central part of Nine Elms near the US Embassy and the upcoming Nine Elms Underground station. Apartments at Riverlight are spread across six pavilions which have been arranged so that natural light is enhanced and maximized. Embassy Gardens has already been in the news owing to a swimming pool that serves as a ten storey-high link between its two residential towers. Proving to be very popular with applicants, we are doing brisk rentals here. One Nine Elms stands at the entrance point to a fantastic stretch of greenery that lends a semi-rural setting to the surrounding streets. The prices in One Nine Elms in particular are considerably less than other developments that share this Zone 1 riverside location. One bedroom apartments and two bedroom apartments start at £642,500 and £795,000 respectively.

Rental yields

Riverlight

Studio   £395 – £420 per week

One bedroom   £495 – £525 per week

Two bedrooms   £700 – £750 per week

Three bedrooms   £950+ per week

Embassy Gardens

Studio    £420 – £450 per week

One bedroom   £520 – £600 per week

Two bedrooms   £720 – £900 per week

Three bedrooms   £1,000+ per week

One Nine Elms

Studio         £400 – £420 per week

One bedroom    £500 – £550 per week

Two bedrooms    £675 – £800 per week

Three bedrooms   £950+ per week

It may seem that most of the action in Nine Elms is concentrated around the Thames Path but the elevation of the other apartment buildings is such that almost everybody in the neighbourhood is guaranteed stunning views. Keybridge and the Barratt property development, Nine Elms Point, also benefit from their close proximity to the proposed new Northern Line tube stop. We will soon be opening a lettings branch on site at Nine Elms Point, providing a one stop letting and management service for tenants and landlords.

The proposed Tube station which will form part of the Northern Line extension is part of a bold initiative that extends the line from Kennington, through Nine Elms and on to Battersea. This means that commuters can reach Waterloo in ten minutes and then be in the City or West End in a further five minutes.

Rental yields

Keybridge

Studio   £380 – £400 per week

One bedroom   £475 – £550 per week

Two bedrooms   £650 – £750 per week

Three bedrooms   £850+ per week

Nine Elms Point

Studio   £380 – £420 per week

One bedroom   £430 – £495 per week

Two bedrooms   £550 – £650 per week

Three bedrooms   £750+ per week

Architects of the new property developments around Battersea Power Station take inspiration from the nearby green spaces of Battersea Park. Vista is a uniquely shaped group of apartments that feature sunken courtyards, landscaped communal areas and great amenities. There is a strong community ethos around this western end of Nine Elms with a focus on art galleries, small businesses and lots of cafés.

Rental yields

Vista

Studio   £380 – £420 per week

One bedroom   £485 – £600 per week

Two bedrooms   £650 – £850 per week

Three bedrooms   £900+ per week

Both the UK government and the private sector are putting their weight behind Nine Elms with the first concern that they were keen to address being one of access. Plans to pedestrianise large parts of the area around Vauxhall Bridge include the creation of a linear park that will follow the Thames Path all the way to Battersea. New Covent Garden Market is being streamlined and, most importantly, a Tube extension from Waterloo to Battersea Bridge has been approved. With all these key factors in place, redevelopment has continued at such a pace that Nine Elms has achieved a mini-city status already, with luxury accommodation, magnificent views, top-class amenities and those all important transport links.

With so much local choice, apartments need to stand out presentation-wise so they let quickly.  We recommend investors consider furnishing their investment properties so that they attract a tenant soon as they are available and we can, of course, help with this.

If you have purchased a property in the Nine Elms and would like a free rental valuation please contact us on 020 3411 6913 for further details.