We all know that all 32 London boroughs have experienced sky-high house price growth over the last few years, but which part of the capital offers the highest rental yield?
London estate agent Portico has analysed property prices and rental growth to track where the best places to invest in the capital are.
Although it is unlikely that London’s house prices will continue rising at the rate they currently are, it is true that property prices in the capital are currently at an all-time high.
However, although house prices have risen significantly, rent prices have broadly continued to track earnings growth. Consequently, rents have not increased at the same rate as property prices, and yields have steadily decreased in central areas for the last five years.
Borough-on-borough, Portico found that there are certain postcodes that consistently perform substantially better than others. These hotspots are typically more attractive to renters than to potential homebuyers.
However, Portico discovered subtle differences between postcodes and even streets, so it came up with a unique street level view of yields, which updates with live data. Use the map to help find your next investment: https://www.portico.com/yields
Portico’s instant valuation tool will also offer you both a rental and sale figure within just 60 seconds for any postcode. This will help you determine how much rental income you should be making and how much your property is worth if you’re thinking of selling.
Portico uses data from hundreds of estate agents in London to create an instant picture of the median sale prices and median rental prices for several different types of property in the capital. Comparing this against their own data, they can compare prices in every postcode.
The firm’s map covers zones 1-6 in London, and they are slowly working their way around the M25 to find the best commuter spots for you to invest in. Where they do not have enough meaningful data, the map is blank. For example, in parts of the City of London (EC1 and EC2), residential transaction volumes are particularly low, so there is no rental yield data for this area.
With a new Mayor of London in place, now is a great time to get a piece of the action!
If you do purchase a rental property in the capital, remember to protect your investment with our Defaqto 5-star rated Landlord Property Insurance.
When you find a tenant, you can ensure you always get paid, even if your tenant defaults on the rent, with Rent Guarantee Insurance.