West of Waterlooville - Berewood & Wellington Park Developments
The new housing estates to the west of Waterlooville has been the talk of the town for a while now. The farm land was sold to give way to major developments of new housing estates estimating around 2550 new homes. The housing estates interlink but have been taken on by two separate developers. Taylor Wimpey developed the farm land on Old Park Farm also known as Wellington Park, they completed in 2018. The Berewood developments are still under major development being delivered by Grainger PLC are are estimated to complete in 2030.
As well as the vast amount of houses there are 13 business units on Houghton Avenue for B1 (Business), B2 (General Industrial) and B8 (Storage and Distribution) use. These units are currently on the market to rent with CBRE Southampton. A Rightmove link to the advert and brochure is below:
Back in August 2016, 8 years on from when the major development started, Havant Borough Council released a short update on how the developments were processing, to take a look follow the below link:
Grainger have been the first to offer a build to rent development in Waterlooville.
The Wellington Park and Berewood Heath development consist of 1 bedroom flats up to 4 bedroom detached houses. Whereas Oak Vale of Berewood (Milk Lane, Purbrook) have chosen to specialise in 3-4 bedroom houses, they do have affordable housing within the development as well as flats and 2 bedroom houses but have predominately 3-4 bedroom houses.
The house prices vary from development to development.
Firstly lets look at Wellington Park which has now been around for approximately 6 years, when a 2 bedroom flat/apartment went onto the open market back in 2013 the asking price for the property was approximately £180,000, now the asking price is around £206,500 which is a 14.7% in 6 years. What astounded me when doing this research was the 3 bedroom houses on this estate. They were released for around £205,000 back in 2013 and are new being advertised to sell for approximately £292,000 which is a massive 42% price increase over 6 years, this is a healthy price inflation of 7% year on year.
Next, I looked at Berewood Heath and found a similar pattern to Wellington Park. A 2 bedroom house was released for sale back in March 2015 for £250,000, whereas now the 2 bedroom houses are going to the market with an asking price of around £270,000, an increase of 8%. Again, like in Wellington Park the 3 bedroom houses have increased by 20% over 5 years from £270,000 in September 2014 to the asking price now of around £325,000.
Oak Vale is the newest of the developments so there isn’t as many houses being resold. I have found a few as example showing the houses on the development going up in value and starting to achieve good growth. Starting with the 3 bedroom houses, these first came to the market in November 2015 for an average price of £323,000 and are now being marketed for approximately £370,000, that’s a 14.6% increase over just shy of 4 years. Similarly, with the 4 bedroom houses these went to the market as new builds at approximately £365,000 in April 2014 and are now being resold for approximately £420,000 which is a 15% increase!
It generally takes a short amount of time to let properties within these developments. Tenants consider the proximity of the local shops and the good schools surrounding the catchment to be an advantage. A three bedroomed semi-detached property or townhouse, depending on condition, location and development site, could be purchased for between £290,000 to £370,000. The rents that could be achieved for these are between £1150 and £1300 per month. This means landlords can potentially expect yields of anywhere between 4.2% to 4.7% per year, depending upon the development.
If you have already done a search for property or are trying to figure out where to start, we’re happy to advise on properties before you buy. It’s in your interest that you purchase something that can let, whether you are currently a Principal Properties landlord or not.
Maps/site plans which may be of interest:
Map of the overall development
Map of Berewood development only with location of schools and green space etc.