London property has had it tough in the years following the referendum. However, despite a further softening of property and rental prices in the capital over the last few months, there are still good areas for investment.
The latest research from property investment portal www.oneandonlypro.com, has revealed the current top 10 areas in London for property investment,
After crunching the numbers, One and Only Pro found that Marylebone has taken the top hotspot, with 10.6% of properties found to have ‘Diamond’ investment status.
Despite Marylebone’s high property prices – an average of £925,386 – the area offers London’s best Return on Cash Investment (ROCI), sitting at a high of 65.1%.
In second place, with an average Diamond property price tag of £654,495 was North Kensington with 4.4% of Diamond properties, followed by Notting Hill, which came in third place with 4% and an average £674,495 Diamond property price.
Fourth and fifth place went to Aldgate and Hampstead, both with 3.9% of properties offering a sound investment, with an average Diamond property price of £725,000 and £925,865 respectively.
The analysis ranked London areas based on the percentage of Diamond properties on the market in May 2019. Investment properties across London were given a score from one to ten, with properties rated ten dubbed Diamond properties and the most likely to increase in value. Properties which score ten are a once in a lifetime investment, that will sell quickly. Properties with scores between seven and nine will outperform other similar properties.
Henri Sant Cassia, CEO at www.oneandonlypro.com comments: “Our AI powered research shows that property is all about location and it’s currently better to buy in the prime areas of London, rather than the cheaper suburbs, as investors are receiving more for their money, in terms of short and long term value.
The prime London properties priced between £700,000 and £950,000 in our top five hotspots are offering surprisingly good capital growth potential, rental yields and cash returns in the first 12 months.
Many investors dismiss central London as unaffordable and offering poor rental yields, compared to the rest of the UK, but that simply is not the case. Our algorithm has analysed thousands of properties in central and greater London and the results show that real money can be made in there.
Our data analysts and researchers have checked the rental yield of properties in London. They looked for the actual rents being achieved across all areas for comparable properties and took into account market trends. Only properties offering viable investment opportunities are considered, so shared ownership, retirement and other unsuitable property types are stripped out.
Savvy property investors can pick up below-market-value properties in central London, thanks to mounting Brexit fears and a dip in confidence. There has never been a better time to invest in the capital.”