Investing in St. Neots, Cambridgeshire - A GUIDE BY PROPERTY MOOSE - HubSpot
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A GUIDE BY PROPERTY MOOSE Investing in St. Neots, Cambridgeshire
SECTION 1 Cambridgeshire offers an eclectic mix of quiet villages, cul-
tural vibrancy and a booming technology sector. With easy
Cambridgeshire Fact File
commuter links to London, excellent schools and the high
quality of life, it’s “one of the most popular places to live in
Britain.” (3)
Full of cobble and culture, the county is packed with muse-
ums, concert halls, art galleries and restaurants. The pictur-
esque county boasts stunning architecture, with “elegant town
houses in the heart of the city” and “charming cottages”
throughout. (3)
With its low lying landscape, the county offers fantastic out-
door spaces. The River Cam, which is the main river flowing
through Cambridge, runs for 69.4km and is “navigable for
punts, small boats and rowing craft.” (4) The county is also
AT A GLANCE home to Wicken Fen in Ely, which is is believed to be Eng-
land’s oldest national park. (3)
1. Cambridgeshire is located in the East of England and
covers an area of 3,389 km2. (1)
Cambridgeshire also offers a diverse economy, an outstanding
2. The county consists of 6 districts: The city of Cambridge,
South Cambridgeshire, Huntingdonshire, Fenland, East university and a top of the league housing market. Cambridge
Cambridgeshire and the City of Peterborough. (1) itself has been “Described as one of the "most beautiful cities
3. The county has a population of 647,200. (1) in the world" by Forbes in 2010, tourism generates over £300
4. House prices in Cambridgeshire have risen by 36.3% in million for the city's economy.” (5)
the last five years (2)
5. In the last 12 months, the number of sales seen in Despite its self-sustaining economy, which isn’t particularly
Cambridgeshire was 8,085. (2)
reliable on London, the fast commuter links to the capital add
6. The current average property value is £344,880. ((2) Data
taken on 27.3.2017) to its appeal. (6)
7. The current average price paid is £308,710. (2)
Silicon Fen, a cluster of high-tech businesses surrounding
Cambridge, has contributed to the area’s status as an interna-
2
tional hub for innovation. (6) The name was coined to parallel Savills’ 5 Year Forecast for the East of England and
Silicon Valley’s similar reputation. (19) One example of this is London (2017-2021)
the relocation of AstraZeneca’s global headquarters to Cam-
bridge, which brought approximately 1,600 employees to the
city. (7) The site, which received a 500 million USD invest-
19%
ment, sits in the centre of the Cambridge Biomedical Campus
and has big plans to “push the boundaries of scientific innova-
tion.” (7)
11%
The biggest employment sector, however, is education. Accord-
ing to Savills, in 2014 it accounted for over 25% of all employ-
ees. (8) The University of Cambridge, which ranked 4th in the East of England London
‘World University Rankings 2015-2016’, (9) has over 9,500 di-
rect employees. (6)
SECTION 3
The university holds a global reputation, with 35% of its stu- Spotlight on St. Neots
dent body comprised of international students. (9) We believe
the city has proven itself to be a key player in the UK and on
an international level. We have secured what we believe to be a fantastic investment
opportunity in St. Neots, Cambridgeshire.
SECTION 2
St. Neots is a charming market town just under 19 miles away
Predicted to Outperform London from the City of Cambridge. (10) With a population of 40,000,
it is the “largest and fastest growing town in the county.” (11)
Savills’ 2017 5-year forecast predicts that property prices in
With close links to the A1 and A421 Bedford Bypass, the town
the East of England will continue to rise significantly and may
has fantastic commuter links to and from nearby towns such
in fact outperform London. (18)
as Stevenage, Peterborough, Milton Keynes and Bedford. (12)
In addition, King’s Cross station can be reached within a 45
minute train ride from St Neots, making the town an excellent
commuter hotspot. (13)
3
St. Neots’ market square is one of the largest across the coun- The property type which experienced the highest increase in
try and hosts weekly markets and monthly events throughout value was terraced properties, followed by semi detached prop-
the year. (12). Just a short walk away from the the town centre erties. However, detached properties still hold the highest
sits the 72 acre Riverside Park, a stunning green space with value. (14)
beautiful scenery. The town also holds rich medieval heritage
Percentage Increase of each Property Type in St.
and is “nestled around the banks of the River Great Ouse.”
Neots Between March 2007 - March 2017 (Data Taken
(11)
on 27.3.2017)
SECTION 4
40
Higher Capital Growth than the UK
Average 30
Between March 2007 and March 2017, average property 20
prices in St. Neots increased by £65,004, which equates to a
capital growth of 28.38%. (14) The national increase during 10
this same period was £52,783, highlighting that St. Neots out-
performed the national average by 7.01%. (15) 0
Increase in Property Prices between March 2007 and Detached Semi Detached Terraced Flats
March 2017 (Data Taken on 27.3.2017)
SECTION 5
The County’s 2nd Highest Turnover
21.37%
Town
28.38% Within the county of Cambridgeshire, St Neots has the 2nd
highest turnover on Zoopla’s Zed Index. (14)
UK St. Neots
4
“The Turnover is calculated by dividing the number of sales Average Asking Rents in St. Neots (14)
over the last 5 years (excluding new build properties) by the
number of homes in a given area.” (14) This strong market ac- PROPERTY
1 BED 2 BED 3 BED
tivity is testament to St. Neots’ appeal as a property hotspot. TYPE
Highest Turnover Towns in Cambridgeshire (14) Houses £650 £816 £904
Flats £650 £787 -
22
All £650 £806 £904
16.5
Average Gross Rental Yield in St. Neots (16)
11
NUMBER OF BEDROOMS GROSS RENTAL YIELD
5.5
1 bed 5.48%
0 2 bed 4.53%
Chatteris St. Neots March Huntingdon 3 bed 3.78%
SECTION 6 SECTION 7
Strong Rental Market Highest Number of Actual Sales
St. Neots boasts a strong rental market, with asking rents aver- St. Neots is located in Huntingdonshire, within Cambridge-
aging at around £970 pcm. This varies across property types, shire. Huntingdonshire had the highest number of actual sales
as highlighted in the following table. ((14) Data taken on between June 2013 and December 2016 within Cambridge-
27.3.2017) shire. The average number of actual sales in Huntingdonshire
each 6 months during this time frame was 1,599. This consti-
5tuted for approximately 19% of all actual sales across Cam- have been based on the actual capital growth St. Neots has ex-
bridgeshire, making Huntingdonshire the most successfully perienced in the past 5 years (i.e. 31.96%) (14) and today’s
active hotspot for property sales. (17) gross rental yield of 5.48%. (16)
% of Actual Sales Completed By Areas in Cambridge- Please note, all data was taken on the 27.3.2017
shire Between June 2013 - December 2016
Investment £100 £1,000 £10,000
Rental income
11% £27.4 £274 £2740
18% over 5 years
8% Management
£3.5424 £34.524 £345.24
fees
11% 10% Corporation tax £5.48 £54.8 £548
7%
Net rent £18.467 £184.676 £1846.76
15% 19%
Capital growth £31.96 £319.6 £3196
Total
Returns Over £50.4276 £504.276 £5042.76
Cambridge East Cambridgeshire
Fenland Huntingdonshire 5 years
South Cambridgeshire Forest Heath
St Edmundsbury Peterborough Capital Growth 50.43% 50.43% 50.43%
SECTION 8 Growth Per
10.09% 10.09% 10.09%
Annum
What Could You Have Earned?
As illustrated, you could have enjoyed a capital appreciation
To highlight why we believe St. Neots is a fantastic location of 50.43% in 5 years, which we believe is an excellent return.
for property investment, we decided to calculate what returns
you could have earned over the past 5 years. Our calculations
6Sources
1. https://en.wikipedia.org/wiki/Cambridgeshire
2. http://www.zoopla.co.uk/market/cambridgeshire/?q=cambridgeshire
Disclaimer and Legals
3. http://www.struttandparker.com/properties/residential/area-guides/cambridges
hire
Property Moose does not provide any advice in relation to in-
4. https://en.wikipedia.org/wiki/River_Cam
vestments and you must rely on your own due diligence before
investing. Please remember that property prices can go down 5. https://en.wikipedia.org/wiki/Cambridge
as well as up and that all figures, rates and yields are projec- 6. http://pdf.euro.savills.co.uk/uk/residential---other/cambridge-residential.pdf
tions only and should not be relied on. Past performance is 7. https://www.astrazeneca.com/our-science/cambridge.html#!
not a reliable indicator of future performance. Forecasts are
8. http://pdf.euro.savills.co.uk/uk/residential---other/cambridge-cross-sector-2016.
not a reliable indicator of future results. If in doubt, please pdf
seek the advice of a financial adviser. Your capital is at risk if 9. https://www.timeshighereducation.com/world-university-rankings/university-of-
you invest. This post has been approved as a financial promo- cambridge#ranking-dataset/133819
tion by Resolution Compliance Limited. 10. http://ukdistance.com/route/st-neots/cambridge
11. http://visitstneots.co.uk/
Property Moose is a trading name of Crowd Fin Limited which
12. http://www.stneots-tc.gov.uk/about-the-town/
is an Appointed Representative of Resolution Compliance Lim-
ited which is authorised and regulated by the Financial Con- 13. http://ojp.nationalrail.co.uk/service/timesandfares/St%20Neots/King's%20Cross
/28032017/0942/dep?utm_source=googlemaps&utm_medium=web&utm_campa
duct Authority (no: 574048). ign=googlemaps
14. http://www.zoopla.co.uk/market/st-neots/?q=st%20neots
15. http://www.zoopla.co.uk/market/uk/
16. http://www.rentalyield.co.uk/compare-flat-prices-in-peterborough/properties-in
-saint-neots-pe19/1/
17. http://cambridgeshireinsight.org.uk/Housingmarketbulletin (Edition 32)
18. http://www.savills.co.uk/research/uk/residential-research/forecast-pages/mains
tream-capital-values.aspx?utm_source=SavResi&;utm_medium=5-year-forecast-
site-redirect
19. https://en.wikipedia.org/wiki/Silicon_Fen
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