Our belief is that there is a simple answer to this question, hot! For many years Thornton Heath has been considered a transient place, nestled next door to Croydon. In our view this town perched on the old Brighton Main Line, has a lot to offer.
To understand what has happened in Thornton Heath, one has to understand the Croydon effect. Croydon is undergoing a complete change. With a £1.4bn redevelopment due to end in 2020, the area has seen a surge in property prices. In some reports, Thornton Heath’s house prices were deemed to be moving faster than anywhere else in London.¹ According to Land Registry data and by the estimation of our experts, the Thornton Heath property market could still increase further. Data in March indicated that the average property price in the area was at £310,000, 45% below the £565,374 London average at the time, with properties in the area rising by an average of just over 27.29% in the last year.²
When carrying out research for a suitable crowdfunding property, one of the first things that we consider is the transport links; in our opinion, Thornton Heath does not disappoint. The area is very well connected, with a train station providing journeys into Victoria and London Bridge, in under 30 minutes. In the other direction, several buses and trains will take you into Croydon in less than 20 minutes. You can also reach Gatwick Airport by train from Thornton Heath, in 28 minutes. Today, as well as newer developments, the area can boast Victorian villas alongside terraced and semi-detached housing from the same era.
So why would one invest in property in Thornton Heath? We believe we have found quite a few good reasons. Firstly, if an area is deemed suitable to live in, it then follows that people will want to move there, therefore making the area more attractive to buyers and investors. With prices currently lower than the London average, Victorian housing, a Premiership football team on its doorstep, Crystal Palace Park and its convenient transport links, the area could be a real draw to young families and to first-time buyers that have been priced out of some of the surrounding areas. As a result, we believe it could be a good area for a buy-to-let investment. With lower than average prices, we anticipate investors to see strong returns, especially since neighbouring Croydon is undergoing an extensive development, hopefully creating a ripple effect.
With the future renovation of Croydon and the new Westfield development, the centre of Croydon is set to change dramatically over the coming years. Another exciting arrival will be the opening of Croydon’s very own Boxpark, due in September 2016. This collection of shipping containers will be formed to provide 20,000 square feet of space to new businesses, street food vendors and a large entertainment space, right in the heart of Croydon and merely 15 minutes from Thornton Heath.
The property we are crowdfunding is two adjoining properties, each with a shop on the ground floor, with three flats over the first and second floors and a communal garden. With the money raised via Crowd With Us, the ground floor shops will be converted into residential studios (subject to planning) leading to a total of eight residential flats. These will comprise of two studios, two one-bedroom apartments, two two-bedroom units and two one-bedroom garden flats. The property is close to shops and local amenities and is only 10 minutes from Thornton Heath town centre. The train stations, Thornton Heath, Norbury and Norwood Junction, which is on the London Overground network, are all close, as well as local bus stops nearby. In our opinion all of this means that the properties have a high potential for rental demand.