Buying to Let in London

It goes without saying that buying a property to then let out is a great investment. Most of the time letting out a property goes smoothly and takes little managing, especially if you opt to use an estate agents. If you have an amount of money to invest, or are looking for an alternative to a savings account then a buy-to-let property might just be the right thing for you. The biggest question is where to buy the property? Which area is going to be the better investment for you? With 70% of buy-to-let investors prioritising rental yield over capital gains, getting the area right can make a huge difference. Portico London estate agents have put together an Interactive Yield Map so you can have a look for yourselves but here are the top five areas (according to Portico), in London, if you’re interested in buying to let.

Elm Park, Havering 

Current highest yield found with the Portico Interactive Yield Map: 8.5%*

London’s highest yield of 8.5% is found in Elm Park in the east London borough of Havering.

With rents continuing to rise across the capital, an increasing number of people are moving to the outer boroughs in search of more affordable accommodation. Havering is a prime example of this, experiencing double-digit growth over the past 12 months according to Rightmove.

  

Chadwell Heath, Barking & Dagenham

Current highest yield found with the Portico Interactive Yield Map: 8%*

Chadwell Heath in east London offers investors a high yield (8%) and good prospects for long-term capital growth. Like Havering, Barking & Dagenham is the only other London borough to experience double-digit growth over the last year.

This is a direct result of Crossrail, which will arrive at Chadwell Heath railway station in May 2017. When the route fully opens in December 2017, passengers will be able to travel straight to Canary Wharf in 23 minutes and Bond Street in around half hour.

 

Creekmouth, Barking & Dagenham

Current highest yield found with the Portico Interactive Yield Map: 6.8%*

Creekmouth in Barking and Dagenham may be an extremely industrial area, but it produces a strong 6.8% yield.

The industrial area surrounding River Road and Thames Road is one of Barking and Dagenham’s largest employment areas, which attracts tenants looking for convenience and value for money. While Creekmouth doesn’t have its own Tube, there is a proposal to extend the Overground to a new station at nearby Barking Riverside.

 

Little Heath, Redbridge

Current highest yield found with the Portico Interactive Yield Map: 6.6%*

Little Heath, not far from Chadwell Heath, attracts renters looking for Outstanding schools, green spaces and handsome period housing. 

As mentioned earlier, Chadwell Heath will benefit from Crossrail next year, which will increase Little Heath’s desirability too.  

 

Yarnton Way, Abbey Wood

Current highest yield found with the Portico Interactive Yield Map: 6.6%*

Generation has started in Abbey Wood in preparation for Crossrail which will arrive in the area in 2018. Shrewd investors are already purchasing period homes around the station, but the area’s highest yield (6.6%) is located just to the east on Yarnton Way.

*Rental yields quoted here are statistical assessments taken from the Interactive Yield Map on 18/10/16. They are not guaranteed and may be lower if the property does not achieve continuous occupancy.

If none of these areas interest you then you can use the Portico Interactive Yield Map to find an area of London that does. You can then see how well your investment may fair. Portico analyses hundreds of property prices daily. They use 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.

So if you’re looking to invest in a London property to let then using the interactive yield map might give you a good idea of what to expect from your investment.

 

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