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London’s Rental Market Remains Strong Post-Brexit
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
It’s good news for landlords, as the latest post-Brexit figures show that London’s rental market has remained strong following the shock vote last month.
Rent prices across the capital have remained steady in the period from May to July, according to data from London estate agent Portico.
Interestingly, prime central London has experienced a post-Brexit boost; Kensington and Chelsea saw a monthly rental average increase from May to July of 0.4% and Westminster also saw a 1.7% rental increase. The trendy east London borough of Tower Hamlets also saw a healthy 1.2% rental price increase from May to July, and savvy investors are still keen to snap up properties in hotspot areas created by infrastructure projects like Crossrail and Crossrail 2.
Portico has also detailed the top buy-to-let hotspots in the new Crossrail 2 zone: https://www.justlandlords.co.uk/news/crossrail-2-coming-london-invest-along-line/
The firm has created a graph using its latest rental data that shows the average rent price for a two-bedroom property in each London borough. It has also calculated the highest potential yield in each area, so that you can see where you will get the greatest return on investment.
Outer London boroughs
On the whole, outer London boroughs offer the highest rental yields, but the lowest average monthly rent prices. The highest yield of 8.3% can be found in Havering, in the popular but affordable Hornbridge area.
Barking and Dagenham, Bexley, Redbridge and Bromley also offer extremely strong yields, generally over 6%.
Portico has witnessed an increasing number of London tenants moving further out of the capital, particularly further east, to get more for their money. The desirable, suburban area of Chadwell Heath in Barking and Dagenham offers an impressive 7.6% yield, and its popularity is set to rise further when Crossrail arrives.
The agency also expects Romford, Manor Park, Ilford and Forest Gate to benefit hugely from the Crossrail project. Tenants in these areas will be able to enjoy affordable rent prices and a quick commute into London, with landlords able to enjoy both high rental yields and the possibility of strong capital growth.
Inner London boroughs
If you are seeking high yields in inner London, the boroughs of Greenwich, Southwark and Tower Hamlets all offer healthy prospects. Southwark has surged in popularity over the past year, thanks to extensive regeneration around the Shard and infrastructure improvements in the area. However, it is still one of the most affordable inner London boroughs. The highest yield in the borough, 5.5%, can be found in Peckham.
As for Greenwich, the area around North Greenwich station offers a high 6% yield. In Tower Hamlets, landlords can make the highest rental yields, of 4.8%, near the Canary Wharf Tube station, which will be the first Crossrail station to be constructed, and in the trendy but affordable Whitechapel, at 5.2%.
Prime central London
Although rent prices in prime central London have had a boost post-Brexit, yields in these locations are relatively low. However, a healthy 4.8% yield can still be found in Westminster, in the desirable St. John’s Wood area.
In Kensington and Chelsea, the highest yields, of 3.8%, can be found around the towering World’s End Estate.
If you have been waiting to purchase a rental property post-Brexit, these figures will help you decide where is best for you to invest in London’s rental market.