Hello Ashford property investors,

When it comes to looking into where to invest, something worth considering is whether the local population is increasing or decreasing, and recent data provided by Kent County Council highlights how the population within Ashford is the fourth highest in terms of percentage growth for all Kent districts for the year to mid-2020.

The only areas higher than Ashford are Canterbury, Dartford and then tied equal with Maidstone. I have included some data from KCC below which helps to outline this. Whilst overall population growth is relatively small in terms of numbers, it is probably no surprise that Ashford is one of the quickest growing!

In addition to this, it is interesting to see how the 2011 census revealed that the borough saw the largest population growth in Kent, with records showing a 14.6% rise to 118,000 inhabitants. Given the growth since 2011, by 2030 Ashford could see a population of 144,000.

So, why does this growth in population matter so much for property investors? Well, there are a couple of things to be aware of when it comes to population growth and generally they are all positive!

Population growth signals an increased desirability for a particular area

It’s probably no secret that population growth gives a strong signal of an increased desirability for a particular area.
The key to a successful property investment is identifying up and coming areas in order to buy low and benefit from the long-term appreciation, so an increased population is a strong signal to look for!

Generally, population growth is accompanied by new infrastructure and this is certainly something which is happening in Ashford with developments such as the South Of Ashford Garden Community.

Population growth means an increase in property prices

So, population growth coupled with new infrastructure is a strong signal, but what does is the impact. Well, the property market is one of supply and demand so where there is increased population growth there is also an increased demand for housing.

An increased demand for housing generally leads to an increase in property prices as more and more people start looking for properties within the same (or similar) area. We have definitely seen this with Ashford benefitting from the highest house price growth in Kent during 2020!

Population growth means increased rental rates

The second thing that an increased population and desirability means is an increase in rental rates. So, for example, if you now have ten people rather than seven looking at a rental property then you will inevitably have the price increased as a response to the increased demand.

Although I am unable to access any specific data for Ashford regarding rental rate increases, I do know from speaking with other investors that rental rates have increased significantly, with the South East seeing an increase of 8.1% when compared to last year.

All the signs are there making Ashford certainly one to watch. I not only do I think it is the next HMO hotspot, but with the lower average prices than most areas in Kent and fantastic capital growth potential, it is certainly an area to get into now and hold for the next 5 – 10 years!

Are you looking to make a property investment within Ashford or the surrounding areas? If so, feel free to reach out via LinkedIn and I will be happy to book an initial 15 minute consultation.

Hasan