There’s no doubt about it – 2016 has been an eventful year for the property market. The EU referendum threw it into uncertainty, and many investors were concerned about the future of their investments. However, it’s interesting to note that the rental market in parts of London still continues to experience growth – here’s some more information.
Central London – Property Investment Opportunities
Interestingly, certain areas of London have actually performed more strongly since the Brexit announcement. The ever-exclusive Kensington and Chelsea saw average rental prices increase by 0.4%, and Westminster’s average monthly rent also increased – by 1.7%. Further east, Tower Hamlets has also experienced growth, with a 1.2% increase.
Additionally, the forthcoming arrival of Crossrail and Crossrail 2 are driving prices up in other locations across the city. Even the Night Tube has caused rental rates to increase in locations close to the Central and Victorian lines.
Where to Find the Highest Rental Yield in London?
If you’re looking for investment properties in London, a great place to start your search is in the outer London boroughs, such as Redbridge, Dagenham, Bexley and Bromley. Havering currently offers the highest rental yield – and savvy investors can currently enjoy an 8.3% return in this location.
Barking and Dagenham are close behind, offering 7.6% returns, and Redbridge currently offers 6.6%. In inner London, the boroughs that offer the best rental potential are Tower Hamlets (5.2%), Greenwich (6%) and Southwark (5.5%).
Investment Properties in Central London
Central London generally offers lower rental yield than other locations, though currently, it’s possible to generate a 4.8% yield in parts of Westminster. However, investment properties in London often increase in value over time – making them excellent longer-term property investment opportunities.
How to Start Searching
If you’re looking for investment properties in London, it’s important to base your search in the right location – and adopt the right approach!
Here’s a few tips to help you.
The Buy2Let Shop in Bromley
The Buy2Let Shop are a team of property investment agents in London, with expert knowledge of current rental trends, property prices and market growth in the city and beyond. We’ve got a range of property investment opportunities for savvy investors, and we also offer help with buying a house at auction.
If you’d like to brush up on your knowledge of the market, The Buy2Let Shop also holds regular property investment seminars in London. If you’d like to find out more, simply visit our site today.