With this month’s launch of the Night Tube on the Central and Victoria lines, landlords can find new locations that offer strong capital growth and good rental yields in London’s rental hotspots.
According to London estate agent Portico, the Night Tube will drive up house prices in Zones 3, 4 and 5, while strong rental yields can already be found in the outer zones of the route. The service is due to launch on the Jubilee line on 7th October, with the Northern and Piccadilly lines following in the autumn.
Hounslow West, in Zone 4 near Heathrow Airport, currently offers the highest average rental yield on the Night Tube route, at 5.3%, while fellow Zone 4 location Hainault is just behind, at 5.2%.
Up-and-coming property hotspot Stratford, in Zone 2/3, has a healthy rental yield of 5%, while Zone 3’s Tottenham Hale and Stanmore achieve average yields of 4.8%.
While most Londoners may have considered Zone 4 onwards out of reach in the past, the Night Tube has opened up new possibilities for renters.
Portico predicts that both rental yields and house price growth will rise as a result of the Night Tube launch, and that areas at the end of the lines will see the greatest property price increases, such as Cockfosters, High Barnet and Walthamstow.
The Regional Director of Portico, Mark Lawrinson, comments: “The Night Tube will appeal to young professionals who work and party in central London, but can’t afford to buy in Zone 1 or 2. The new 24-hour service will mean they can push further out to more affordable areas, while still maintaining the lifestyle they want, and without spending a fortune on taxis!”
So which areas on the Night Tube route offer the highest rental yields for landlords? Portico has used its Yields Calculator to find out.
|Position||Location||Line||Zone||Average rental yield|
|6||Walthamstow||Central and Victoria||3||4.7%|
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