(58)
Leave us a review
Leave us a review
Rents in the city are still the highest in the country, and in this article we’ll look at the top areas to buy-to-let in London based on Totally Money’s most recent buy-to-let yield map.
Property prices in London continue to dominate any other part of the UK, so making a profit in the capital is more challenging for buy-to-let.
Taking everything into consideration, east London offers the highest yields and north London performs the worst. Let’s take a look in more detail.
East London has some impressive yields. East Ham (E6) was best overall, with yields of 4.81 per cent. Stratford (E15), Plaistow (E13), Poplar (E14) and Chingford (E4) also made London’s top 10, with yields over 4 per cent.
Newham is an interesting investment area, following Stratford’s vast regeneration which has been ongoing since the London 2012 Olympics. E15 has an average yield of 4.45 per cent, sitting nicely above the capital’s typical percentage.
In East Ham (E6), the average monthly rental value is £1,421, against fairly humble average asking prices of £354,162.
In south east London, Bexley has more affordable properties than central locations. Thamesmead’s (SE28) average rental yield is 4.46 per cent, and it also has one of the lowest average house prices of any of the London boroughs, standing at £296,439.
The rest of the capital’s offerings pale a little in comparison, with rental yields in south London lower than previous years. Bromley has suffered declining yields since 2018, and is nowhere near the top.
But commuter spot Southend-on-Sea ranks ninth in the UK’s top 25, with an average yield of 8.02 per cent. This is well above average for the capital but might not represent long-term trends.
West London is the traditionally more leafy and expensive part of the capital for renters and buyers alike, with areas like Chelsea and Kensington fetching upwards of £2.5 million on average.
However, relatively central areas like Hammersmith boast a 4.47 per cent yield, good rental value and a more modest average sale price than nearby postcodes.
Hammersmith (W6), Westminster (SW1) and Tooting (SW17) also sit inside the top 10 buy-to-let areas in London, with Kensington (W8), Paddington (W2) and Chelsea (SW3) amongst the worst.
Unfortunately North London has five of the capital’s postcodes with the smallest yields. Highgate’s (N6) average property prices is around £1.5 million but rental yields are just 1.93 per cent on average.
Nearby Hampstead (NW3) however proves a little better, with similar property prices but a rental yield of 4.20 per cent.
So what should you look out for?
In such a sprawling city, finding the next golden opportunity takes research, local knowledge, and quite a bit of luck.
However, keeping the below considerations in mind should help you on your buy-to-let journey:
⦁ Transport links
⦁ Schools in the area
⦁ Regeneration projects and plans
⦁ Local amenities – shops, bars, restaurants etc.
⦁ Distance to universities and/or work hubs
If you’d like to discuss buying or letting within London, please contact us austin@austinhomes.co.uk or via our social channels for more information.
Miss. Claire White
W. Why Media
E. claire@whymedia.com