Much has changed on the property landscape in London in recent years but pick an area well and it remains a great investment. We review what has impacted the market and the best areas to invest in London.
The London property market has had a tough time of it of recent; three years on since the Brexit vote the political scene remains in flux and the impact of this uncertainty on the economy is undoubtable. However impacted by this the property market is, some things never change, London remains the hub of the country with domestic and international migration alike. Ed Mead, of property services company Viewber advises buyers to take the long-term view with regard to investment in the capital. “People love Britain because it’s safe and economically stable. It’s not going to lose its lustre. So long as you take a long-term view, if you see something you like and it makes sense to you, buy it.”
For potential investors in London the market could not be in a better position to buy. According to Hometrack, as of April 2019, the average discount from the asking price of a property has increased from 1% in 2016 to 5.7%, so there are some bargains to be had.
So in a city as vast and diverse as London what should you be looking for in a buy-to-let area?
- Transport links into and across the city by bus, tube and rail. Also consider major transport hubs and links to international airports.
- Local amenities; shops, bars, restaurants and gyms all rank as very important to Londoners.
- Schools in the area, not neglecting nurseries as very often both parents return to work within the first year of a baby’s birth.
- Distance to work hubs and universities. Many new developments include work spaces, which are growing in popularity. Universities always provide a steady flow of students to fill the accommodation.
- Regeneration projects are always a safe bet as they often take all of the above into consideration and are well marketed.
So here are our top areas for consideration when looking to invest in a buy to let in London:
- Hammersmith and the surrounding area are a great investment. A relatively central area, with fast links into central London and to international airport Heathrow, unsurprisingly some areas boost a 4.47% yield and a healthy rental value. It’s worth mentioning that neighbouring Chelsea and Kensington have oft unobtainable property values of £2.5 million on average, so with Hammersmith you get the proximity to the leafy, expensive Royal Borough of Kensington & Chelsea but with a more realistic house prices.
Our properties in Lillie Square {Hsiang can we hyperlink this to the brochure or old article?} are a fantastic option with prices starting at £725,000.
- Stratford and Newham – east London is always a popular for investment with our clients. It has retained its long-held position of being appealing to young professionals and families alike, with fantastic transport links and schools. Since the regeneration project and 2012 Olympics these areas have seen yields upwards of 4% making it a solid option for short- and long-term investment alike.
New Willow House {Hsiang can we hyperlink this to the brochure or old article?} is one of our most popular instructions, and deservedly so with spacious apartments and great proximity to the tube and surrounding green spaces. It is also great value for London with prices starting at £350,000.
- Tottenham – Tottenham is about to undergo a huge regeneration project to the value of £1 billion, upgrading White Hart Lane tube and overground. This transformation will bring 2,500 new homes alongside new public spaces, shops and restaurant. Tottenham is increasingly being recognised as an affordable and better-connected option for young professionals and families pushed out pricey Stoke Newington and Clapton.
You would struggle to best Woodberry Down {Hsiang can we hyperlink this to the brochure or old article?} for its transport links and proximity to nature. Prices start at £550,000.
It is worth bearing in mind that buy-to-let investors are facing more regulations and taxes than ever. There will be tougher electrical safety rules, security deposits for tenants will be capped at 5-weeks and the government plans to abolish the so-called no-fault eviction (otherwise known as Section 21). These can only be seen as a positive, a crackdown on rogue estate agents has been long overdue and can help to address any lack of confidence in the buy-to-let market.
The good news is at Austin Homes for all our managed properties we will cover the costs of the contracts, referencing, 6 monthly inspections and the checkout. Not only will your property be expertly managed but you’ll now be saving money and have peace of mind that your property is being looked after.
Press Contact:
Miss. Claire White
W. Why Media
E. claire@whymedia.com
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