Home Residential PropertyBuy-To-LetHavering ranks the most profitable borough for Buy-to-Let

Havering ranks the most profitable borough for Buy-to-Let

by LLP Reporter
23rd Sep 20 2:14 pm

A new study by CIA Landlord reveals the London boroughs with the cheapest average house prices vs. the average rental cost to uncover the most profitable hotspots to invest in before stamp duty holiday ends in March 2021.

For those living in London, buying a property can seem like an extremely unattainable dream with the average price tag for a home in the capital commonly topping the million-pound mark. However, with remote working taking over the capital, there are actually 13 boroughs where average houses prices fall below the ยฃ500,000 mark, allowing for an attractive pot of stamp duty savings too, within an area that is a perfect commutable distance into the city.

The study revealed that Havering was the best borough for profitability, with house prices averaging at ยฃ395,832 and monthly rental prices reaching a high ยฃ1,895. Under the stamp duty holiday, you can also expect to save more than ยฃ9,000 when buying the property!

Newham, Barking & Dagenham and Enfield follow Havering, with house prices averaging between ยฃ300k-ยฃ400k. With the average monthly rent price for all the top London boroughs surpassing ยฃ1,000 per month, landlords in the capital that look to invest further out of zones 1-3 will certainly reap the rewards.

The top London boroughs for landlords Buying-to-Let

Rank

Borough

Average house price (ยฃ)

Average monthly rent price (ยฃ)

Stamp duty saving (ยฃ)

Profitability /10

1

Havering

ยฃ395,832

ยฃ1,895

ยฃ9,792

6.40

2

Newham

ยฃ354,705

ยฃ1,531

ยฃ7,735

5.92

3

Barking & Dagenham

ยฃ302,060

ยฃ1,353

ยฃ5,103

5.77

4

Enfield

ยฃ399,517

ยฃ1,362

ยฃ9,976

5.55

5

Lewisham

ยฃ439,831

ยฃ1,420

ยฃ11,992

5.54

6

Hounslow

ยฃ401,178

ยฃ1,348

ยฃ10,058

5.52

7

Waltham Forest

ยฃ465,099

ยฃ1,415

ยฃ13,255

5.47

8

Bexley

ยฃ368,483

ยฃ1,265

ยฃ8,424

5.47

9

Harrow

ยฃ467,861

ยฃ1,389

ยฃ13,393

5.42

10

Redbridge

ยฃ455,417

ยฃ1,359

ยฃ12,771

5.41

11

Croydon

ยฃ357,195

ยฃ1,190

ยฃ7,860

5.38

12

Hillingdon

ยฃ478,917

ยฃ1,332

ยฃ13,946

5.31

13

Sutton

ยฃ466,926

ยฃ1,181

ยฃ13,346

5.10

Kensington and Chelsea ranks as the least sensible Buy-to-Let hotspot for Stamp Duty savings

With average house prices reaching over ยฃ2m, Kensington and Chelsea (5.46 out of 10) ranks as the least sensible buy-to-let hotspot amongst the current stamp duty holiday. Whilst just as profitable as Bexley (5.47 out of 10) or Waltham Forest (also 5.47 out of 10) why not avoid the hefty price tag and opt for a borough that returns the exact same in proportional investment at just a fraction of the price?

Bromley, Haringey and Ealing follow as the second, third and fourth-least business-savvy options with the exact same profitability ROI as Barking & Dagenham (ยฃ302,060) or Enfield (ยฃ399,517).

This being said, if you a couple million spare to invest and are just looking for the most profitable borough disregarding stamp duty savings, Westminster, with a profitability score of 8.04 out of 10 is your best bet. This is followed by Southwark, Lambeth, Brent, Wandsworth, Hammersmith, Barnet and Camden, where no other borough below ยฃ500,000 comes near these areasโ€™ return on investment margin (scores ranging from 6.56 to 8.04 out of 10).

The Least Sensible London Boroughs for Landlords Buying-to-Let Under Stamp Duty Holiday

Rank

Borough

Average cost of property (ยฃ)

Average monthly cost to rent (ยฃ)

Stamp Duty Savings

Profitability

1

Kensington and Chelsea

ยฃ2,143,009

ยฃ4,003

ยฃ15,000

5.46

2

Bromley

ยฃ502,444

ยฃ1,280

ยฃ15,000

5.50

3

Haringey

ยฃ617,581

ยฃ1,638

ยฃ15,000

5.77

4

Ealing

ยฃ770,065

ยฃ1,916

ยฃ15,000

5.81

5

Greenwich

ยฃ569,448

ยฃ1,685

ยฃ15,000

5.98

6

Richmond Upon Thames

ยฃ913,850

ยฃ2,291

ยฃ15,000

6.03

7

Kingston Upon Thames

ยฃ674,463

ยฃ1,968

ยฃ15,000

6.15

8

Tower Hamlets

ยฃ541,143

ยฃ1,803

ยฃ15,000

6.25

9

Merton

ยฃ598,216

ยฃ1,919

ยฃ15,000

6.28

10

Islington

ยฃ807,693

ยฃ2,320

ยฃ15,000

6.37

11

Hackney

ยฃ558,438

ยฃ1,913

ยฃ15,000

6.38

12

Camden

ยฃ1,050,079

ยฃ2,845

ยฃ15,000

6.56

13

Barnet

ยฃ628,281

ยฃ2,183

ยฃ15,000

6.63

14

Hammersmith

ยฃ988,444

ยฃ2,797

ยฃ15,000

6.65

15

Wandsworth

ยฃ770,060

ยฃ2,484

ยฃ15,000

6.74

16

Brent

ยฃ509,812

ยฃ2,105

ยฃ15,000

6.83

17

Lambeth

ยฃ720,226

ยฃ2,469

ยฃ15,000

6.85

18

Southwark

ยฃ762,437

ยฃ2,983

ยฃ15,000

7.57

19

Westminster

ยฃ1,217,229

ยฃ4,029

ยฃ15,000

8.04

Leave a Comment

You may also like

CLOSE AD