Oval Village Kennington: Prices and Rental Yields Inside the Historic Gasholder

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Hello everyone. A pool and a spa built inside a giant nineteenth century gasholder. Today, in Zone 1, Oval Village is what we are looking at today!

For prices, taxes and the whole buying process, see our guide: UK Property Guide

Apartment types, current price range and location: see the project page

In Kennington, right beside the Oval cricket ground, the two hectare site of the former Oval Gasworks Berkeley Homes is being wholly transformed by. In total, 738 homes. But the star of the scheme is this: the Grade II listed historic gasholder structure has been kept and a residents’ club set inside it over two floors, with a swimming pool, a hydropool, a gym and a cinema. Yes, you read that correctly: you swim inside a historic industrial monument.

Prices

• One bedroom apartments: £750,000 band
• Manhattan (studio type), one, two and three bedroom options
• Apartment sizes: 52 m², 101 m²
• Total 738 homes; including the 18 storey Pinnacle tower
• Address: 283 Kennington Lane, London SE11 5QY

Berkeley Homes, one of the most established developers in England, and one of the most disciplined on delivery. On schemes that involve restoring a historic structure at this scale the choice of developer is critical, and here that worry does not arise. the advantages of buying a new build home with a strong brand behind it.

Why Oval Village?

Right in the middle of three stations: the scheme sits between Oval, Vauxhall and Kennington stations, which means access to the Northern Line and the Victoria Line at the same time. Being within walking distance of two separate high frequency tube lines is a serious privilege in London.

• Oval (Northern Line), within walking distance
• Vauxhall (Victoria Line and national rail), within walking distance; 4 minutes to Victoria, 8 to Oxford Circus
• Kennington (Northern Line), within walking distance
• on the Northern Line Waterloo 4 dakika, Bank 8 dakika, London Bridge 6 dakika
• The river, Westminster and the Southbank a few minutes away

The gasholder: an identity that cannot be copied: there are many new residential schemes in London, but only one turns a Grade II listed gasholder into a residents’ club. Architectural identities of this kind become brands over the years, and on resale the flat is remembered as "the one in that building". That is the difference from an ordinary glass tower.

Daily life: in Zone 1, and still quiet

Leave the house at 8:40, be at Bank at 8:48. A workout in the gym inside the gasholder at lunchtime. The quiet streets of Kennington or the restaurants of Vauxhall in the evening; at the weekend a cricket match at the Kia Oval, a walk by the river, a museum tour on the Southbank. Kennington is one of the few districts that is in Zone 1 without losing the feeling of a neighbourhood.

Oval Village rental yield

Because Kennington and Vauxhall are relatively affordable for Zone 1, the rental yield runs above central London. One bedroom apartments usually let for £2,500 to £2,800, 2+1s £3,800 to £4,200 a month. That puts the gross rental yield in the 4-4.5% band.

Tenant profile: professionals working in Westminster and the City, staff of the nearby hospitals and institutions, and people working in the new offices at Nine Elms. Amenities such as a pool and a spa create an extra premium with upper segment tenants. If you are after a higher return, high yield buy to let areas is worth a look.

The shared areas and the details that set Oval Village apart

The shared areas sit inside the historic gasholder, run over two floors and were designed by the award winning interior practice Goddard Littlefair:

• Swimming pool: an indoor pool inside the historic gasholder, for residents only.
• Hidro Havuz: a second, wellness focused pool, with massage jets.
• Sports Hall: a fully equipped gym you can use without paying a membership.
• Cinema room: a screening room for residents only.
• Work spaces: quiet co-working areas designed for people working from home.
• Lounge areas: shared living space for entertaining and socialising.
• 24-hour concierge: parcels, security and welcoming guests.
• The restored gasholder: the symbol of the scheme, a structure recognised on the London skyline.

Energy efficiency and comfort

Berkeley standard insulation, a high performance facade and efficient central systems; the apartments are typically EPC B band. Against Kennington’s Victorian building stock the difference in the bill is serious. If you let the property you are also safe against the tightening minimum energy standards in the United Kingdom.

Who is buying?

Professionals and investors aged 30 to 50 who want to be in Zone 1 but do not have a Chelsea or Mayfair budget, and people who want a pool and a spa while still looking for the feeling of a neighbourhood. The compact Manhattan apartments are favoured by investors, the two and three bedroom layouts by families settling in London. Among international investors the Berkeley name is a strong element of trust.

Frequently asked questions

What is the tenure? Leasehold: Berkeley schemes typically grant a term of up to 999 years, which in practice gives security close to freehold ownership.

Are the apartments inside the gasholder more valuable? The homes inside the gasholder structure are the emblematic part of the scheme and demand is high. That said, the upper floors of The Pinnacle tower stand out for the view. We can work out together, through budget and purpose, which is right for you.

Can I buy remotely from abroad? Yes. For the details, our remote property purchase guide page.

Can I use a mortgage? Foreign buyers can normally borrow up to 65-75% of the value. UK mortgages for foreign nationals is worth reading.

How much is the service charge? On a scheme with two pools, a spa, a cinema and a concierge the service charge sits above the London average. Do ask for this item when working out the net yield; we obtain the current figure for each apartment.

Total cost: what you actually pay when you buy at Oval Village

Many overseas buyers look only at the apartment price and meet a surprise at completion. Let us work out the real cost on a £750,000 apartment. Stamp duty (SDLT) in the United Kingdom is banded: 0% up to £125,000, then 2%, 5%, 10% and 12%. On top of that, non-residents pay a 2% surcharge, and if you already own another home, a further 5% additional dwelling rate applies.

With a mortgage there are also valuation and bank charges, and if you let the property, management commission and income tax. The figures above are indicative, based on a £750,000 entry price; we prepare the exact calculation for your own scenario.

The Oval Village buying process, step by step

If you are buying from another country, the process runs like this:

• 1. Choosing the apartment and reserving it. We go through the floor plans, the aspect and the view. The apartment you choose is usually held with a reservation fee of £5,000 to £10,000.
• 2. Appointing a solicitor. An independent English property solicitor (conveyancer) is appointed. That solicitor acts for you, not for the developer.
• 3. Identity and source of funds checks. You will be asked for a passport, proof of address and documents showing the source of your funds. This step is compulsory in the United Kingdom, and having the papers ready shortens the process.
• 4. Exchange of contracts and deposit. Contracts are usually exchanged within 21 days of the reservation, with a 10% deposit. The signature can be given digitally from abroad.
• 5. Stage payments. In off plan projects these follow the payment schedule; for completed apartments the step is skipped.
• 6. Completion. The remaining balance and the stamp duty are paid and the title is registered in your name. For completed apartments this stage can take four to eight weeks.

You can run the whole process from your own country; you do not have to travel to the United Kingdom.

Risks and what to watch for

We have set out the strengths; in fairness there are points to watch as well. For Oval Village, these are the ones worth pausing on:

• The scheme is large and phased, 738 homes are handed over in stages; there will be construction activity nearby for a while yet.
• High service charge: two pools, a spa, a cinema and a concierge are costly amenities; ask for the figure at the outset.
• Kennington is a quiet district at night: it may feel too quiet for anyone who wants the buzz of Vauxhall; a matter of taste.
• The choice of aspect is decisive: the difference in view and in value between the homes inside the gasholder and the tower floors is serious.

None of this makes the project a bad one, but there is a wide gap between buying with your eyes open and finding out afterwards. We give every client this list up front.

How does Oval Village compare with the alternatives?

Before you decide, it is worth looking at the other projects in the same budget band:

• Graphite Square: a boutique scale in the same district, with a lower service charge.
• DAMAC Tower Nine Elms: branded interior design nearby, at a more affordable entry price.
• Park & Sayer: for anyone wanting more floor area in Zone 1.

We can work out together which project fits your goal, judged on budget, intended use and exit plan. For an overview, our guide to UK property investment for international buyers is worth reading too.

Answers to the most common questions on this topic: Is Buying a Home in London a Good Idea?