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Where to buy-to-let in London

by Deleted Subscriber Content
30th Aug 16 9:56 am

Here’s where to invest in the capital

If you’ve got cash to splash, London is where you get the most bang for your buck.

After all, it’s not only the finance capital of Europe it’s also the investment capital of the world – despite economic doom and gloom around a possible recession or the recent Brexit vote.

No wonder London’s got investors lining up to get their hands on the smallest piece of land in the capital.

But where should you invest?

According to Mark Lawrinson, regional director of London estate agents Portico, buy-to-let property in London will fetch you both rental yields and capital gains. They have developed an Interactive Rental Yield Map to give London landlords a quick overview of potential rates of income, and an Instant Valuation tool so you can check your current property value.

However, many London landlords are still relying on buy-to-let mortgages, so a very small difference in yield can affect whether they make a profit or a loss.

Take a look at the top 10 places to buy-to-let in London:

1. Ilford

Ilford High Street

Ilford High Street

Average house price:  £433,437

Average rent price: £1,267 pcm

Current highest yield found using the Portico Interactive Yield Map: 5.5%

One killer reason to invest here: Ilford will be on the Tube map when Crossrail arrives next year which will attract a new wave of renters looking for somewhere affordable and well connected to live. The area is being touted as the new Bethnal Green, thanks to an array of cafes and shops popping up. All in all, Ilford is being smartened up encouraging first-time buyers to settle down here.

2. Hounslow

Hounslow High Street

Hounslow High Street

Average house price: £435,967

Average rent: £1,194 pcm

Current highest yield found using the Portico Interactive Yield Map: 5.3%

One killer reason to invest here: Hounslow is seeing an onslaught of people who are moving from Isleworth and Twickenham to get more for their money. The area’s proximity to Heathrow and West London and close links to M4 to Oxford and the Cotswolds has made it an attractive area for investment.

3. Greenford

Greenford Road

Greenford Road

Average house price: £463,048

Average rent: £2,245 pcm

Current highest yield found using the Portico Interactive Yield Map: 5.3%

One killer reason to invest here: Recent regeneration has put Greenford in the spotlight. It’s increasingly becoming a popular commuter hotspot benefitting from good transport connections and cheap house prices. Another USP of the area is it’s a stone’s throw away from Ealing Broadway which is now benefitting from the Night Tube.

4. Croydon

Westfield Croydon

Artist’s impression of Westfield Croydon

Average house price: £401,474

Average rent: £1,180 pcm

Current highest yield found using the Portico Interactive Yield Map: 5%

One killer reason to invest here: Croydon has undergone a massive regeneration and its transport links to central London make it a buy to-let-hotspot. It’s an area where more and more people live and work which is creating its own market and micro-climate. Not to mention, the area is way more affordable in comparison to London prices.

5. Wood Green

Average house price: £533,056

Average rent: £1,400 pcm

Current highest yield found using the Portico Interactive Yield Map: 5%

One killer reason to invest here: For those planning further ahead, look at the Crossrail 2 map, and focus on areas such as Wood Green and the “Haringey Ladder” which is primed for regeneration and gentrification.

6. Whitechapel

Average house price: £836,026

Average rent: £1,930 pcm

Current highest yield found using the Portico Interactive Yield Map: 4.8%

One killer reason to invest here: Most key investment areas are now in Zones 3 outwards, but if you are keen to buy centrally then Whitechapel is a safe bet, again thanks to key infrastructure changes such as Crossrail and the fact that the silicon roundabout is becoming a great area in which to live, work and play.

7. Forest Gate

Average house price : £473,727

Average rent price: £1,420 pcm

Current highest yield found using the Portico Interactive Yield Map: 4.8%

One killer reason to invest here: The imminent arrival of Crossrail has caused property prices in Forest Gate to rocket. But despite an increase in prices, it’s still one of the cheapest areas to live in London – which is a big attraction for investors, homebuyers and tenants. 

8. West Drayton

Average house price: £411,790

Average rent price: £1,345 pcm

Current highest yield found using the Portico Interactive Yield Map: 4.8%

One killer reason to invest here: West Drayton is undergoing a huge facelift as a result of Crossrail, and its proximity to west and central London, as well as Heathrow airport makes it a great base for young professionals and those searching for a Pied à Terre. Landlords here can expect healthy yields and strong capital growth.

9. King’s Cross

King's Cross station

Average house price: £993,477

Average rent price: £2,304 pcm

Current highest yield found using the Portico Interactive Yield Map: 4.4%

One killer reason to invest here: Fantastic regeneration is going on in the area which was once the capital’s red light district and was almost uninhabitable. With the largest network hub in London offering trains into Europe and possible HS2 to Birmingham, King’s Cross is attracting a lot of young professionals. It’s also a commercial hub with businesses including Google opening up an HQ here.

10. Acton

Average house price: £763,474

Average rent price: £1,878 pcm

Current highest yield found using the Portico Interactive Yield Map: 4.1%

One killer reason to invest here: Though the capital gains aren’t as strong as they were two years ago, Acton is still a hotspot for investors and one of the best connected areas in London, with Crossrail launching in 2017. In addition, the launch of the Night Tube (Central Line) will ensure areas like West Acton and North Acton remain hotspots for tenants who want easy evening access to and from central London.

How does the Portico Yield Map work?

Portico analyses hundreds of property prices on a daily basis. They combine this information with their own company data, so that they have enough information to make confident assessments of the average sale price against the average rental price for a range of different types of London property.

*Rental yields quoted here are statistical assessments taken from the Interactive Yield Map on 22/08/16. They are not guaranteed and may be lower if the property does not achieve continuous occupancy.

If you’re considering letting out your property, find out how much monthly rent you could achieve with Portico’s Instant Valuation Tool.

Or if you’re considering buying in London, or selling your London property, give Portico estate agents a call on 0207 099 4000.

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