UK property investment often focuses on the cities, where capital growth is highest and rental demand is strong. Investment properties in London remain perennially popular, thanks to the enormous number of young professionals, students and families seeking rented accommodation.
If you’re looking for a buy-to-let property for sale in London, it’s important to target your search in order to enjoy a good ROI. Here’s some insight into what tenants are really looking for in the capital, and how to accommodate their needs.
London Investment Properties – What to Buy to Meet Tenant Demand
- Short commuting times. In a recent survey, over half of all tenants indicated that they’d prefer a house that was within 30 minutes’ commute of their workplace. ‘Walk-to-work’ homes in London are becoming increasingly popular, and several UK property investors are focusing their search within the Square Mile financial district – which enables tenants to reach their offices easily by foot.
- Reasonable prices. Escalating rental prices have been hitting the media recently, with some tenants paying astronomical sums of money (often for low quality accommodation). A good property investment agent will offer advice on what to charge, but generally speaking, London tenants expect to pay around 26%-27% of their gross income on rent.
- Higher quality accommodation. Many tenants in London choose to rent as a lifestyle choice – because it offers them greater flexibility, not to mention better options in terms of location. As such, they’re often looking for high-quality accommodation – and this is particularly the case among high-earning professionals. Don’t skimp on quality if you want to attract better-paying tenants.
- Proximity to amenities. Tenants not only like to be near transport links (Tube stations, bus stops etc.) but also like to have access to local amenities, such as shops, pubs and restaurants. When searching for buy-to-let property for sale, scout the surrounding area and find out what’s within walking distance. Likewise, if you’re targeting families, try to find properties that are close to reputable schools.
- Bonus extras. Investment properties in London are often limited on space, and the closer to the centre you go, the less chance there is of finding bonus extras, such as a parking space or garden. If you’re able to find a buy-to-let property for sale that offers something like this, it’ll help attract more tenants.
- Upcoming areas. Remember to look at areas that are currently undergoing regeneration, or which are scheduled to benefit from new amenities or transport links. Locations like these frequently offer great ROI, as property prices tend to rocket in the future.
The Buy2Let Shop in Bromley
If you’re looking for an investment property in London, it’s important to get expert help – to ensure your UK property investment offers great returns. The Buy2Let Shop are a team of professional property investment agents, and we’re here to help you find the ideal house or apartment, at a price that suits.
We’ll work with you along every step of the investment process, to ensure you generate excellent ROI. Our team also offer assistance with buying a house at auction, and hold regular property investment seminars, designed to provide insight into the current UK market. For more information, visit The Buy2Let Shop website today.