Thinking of investing in the capital’s property market? Estate agent Portico has revealed its top ten places to buy to let in London.
The areas have been ranked from highest potential rental yield to lowest potential yield, according to the agent’s Interactive Rental Yield Map.
Along with potential rental yields, Portico’s Regional Director Mark Lawrinson has offered his expert opinion on why each area is a buy-to-let hotspot.
The majority of the areas included in the hotspots list are located in outer London boroughs, although Portico believes that Whitechapel and King’s Cross are safe bets for those looking to invest in the centre of the capital.
So where are the best places to buy to let in London and what is their potential rental yield? Lawrinson explains:
- Ilford – 5.5%
“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.”
- Hounslow – 5.3%
“Hounslow is seeing an onslaught of people who’re moving from Isleworth and Twickenham to get more for their money. The area’s proximity to Heathrow and west London and close links to the M4 to Oxford and the Cotswolds has made it an attractive area for investment.”
Greenford – 5.3%
“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.”
- Croydon – 5.0%
“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 microclimate. Not to mention, the area is way more affordable in comparison to London prices.”
- Wood Green – 5.0%
“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.”
- Whitechapel – 4.8%
“Most key investment areas are now in Zone 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.”
- Forest Gate – 4.8%
“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.”
- West Drayton – 4.8%
“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.”
- King’s Cross – 4.4%
“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 business including Google opening up an HQ here.”
- Acton – 4.1%
“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, plus a Waitrose is soon opening, which has a habit of pushing up property prices. 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. In fact, we expect areas at the ends of the Victoria, Central, Piccadilly and Northern lines to all benefit from house price growth.”
Do you want to take advantage of these areas’ buy-to-let hotspot status? If you do decide to invest in London, remember to choose a market-leading Landlord Insurance provider to protect your property.
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