• London’s top 10 BTL hotspots

    One of the toughest decisions for landlords is choosing where to invest, especially in London where rental yields are typically quite low because property prices are so high. The key is to find up-and-coming boroughs with affordable property prices but high demand, where you’re almost certain to make money in the future but where rental yields are already good enough to cover your BTL mortgage.

    It’s a challenge, we know, so we asked estate agents Portico where they would recommend, and these are their top 10 suggestions:

    Westfield

    1. East Croydon

    Why invest here?

    East Croydon offers a brilliant mix of luxury and affordable living, making it extremely appealing to London tenants. Plus the area is currently being gentrified; a number of big businesses have recently moved into the area, plus Westfield Shopping centre will soon be arriving, which will further increase demand and also increase prices.

    Current highest yield, according to the Portico Interactive Rental Yield Map 4.6%

    1. Forest Gate

    Why invest here?

    There is a strong investment case for residential property in Forest Gate – not just because Crossrail has caused property prices to leap upwards, but because we believe they’ll continue to rise until works are complete.

    In fact, property website Zoopla’s research shows that prices in the area have risen by a staggering 52% since work began on the train line in 2009.

    Current highest yield according to the Portico Interactive Rental Yield Map 4.9%

    Leyton

    1. Leyton

    Why invest here?

    There is a lot of investment happening in Leyton at the minute, and improving transport links are a driving force for property price growth – the Central Line gets you to Tottenham Court Road in just 30 minutes.

    The recently introduced Night Tube now allows residents to get in and out of central London 24/7 at the weekend, which is a huge pull for young renters who are looking for vibrant nightlife and affordable rental accommodation. More importantly, starting prices here are low compared to the rest of London, which means there’s definitely room for price growth.

    Current highest yield according to the Portico Interactive Rental Yield Map: 4.4%

    1. Woolwich

    Why invest here?

    Crossrail has also had a huge impact on Woolwich, causing property prices to rise and transforming the area into a haven for commuters.

    The £1.2billion Royal Arsenal Riverside development has created over 5,000 new homes in the area, plus a new public space and library, and the council have plans to transform the eye-sore estates in the area into desirable new homes.

    Moreover, when Crossrail launches, Woolwich will be one of the best-connected areas in south London. Buying activity is expected to rocket in the run up to the line’s opening, and it’s likely that prices will rise to reflect demand.

    Current highest yield according to the Portico Interactive Rental Yield Map: 3.9%

    1. Enfield

    Why invest here?

    Enfield is certainly the north London hotspot to watch, becoming a popular location for those who want space and value for money, but also want to be within easy reach of central London. Transport links here are fantastic: the borough is served by three train and three Tube stations, plus residents have easy access to the M25, A1 and A10.

    The borough is also set to benefit from a £3.5 billion development – Meridian Water – which will bring 100,000 new homes to the area, plus a new train station with services to Liverpool Street in 25 minutes and Stratford in 18 minutes.

    Current highest yield according to the Portico Interactive Rental Yield Map: 3.9%

    1. Hayes

    Why invest here?

    Currently Hayes is only served by Great Western railway at Hayes & Harlington station, but thanks to Crossrail, by 2018 it will be connected to central and eastern London, with 10 trains running in each direction every hour.

    Hayes is also on the radar of investors because it’s currently undergoing a £6 million transformation of its town centre. This will likely push up property prices in the area, as well as attracting a new wave of renters looking for value for money, great local amenities and convenient transport links. :

    Current highest yield according to the Portico Interactive Rental Yield Map: 5.4%

    1. Clapton

    Why invest here?

    When it comes to investing in property, it pays to know about up-and-coming areas. Clapham is becoming very popular with young professionals because it’s affordable, there’s a wealth of trendy amenities on offer, (like vintage shops), plus it’s down the road from cool Stoke Newington.

    Current highest yield according to the Portico Interactive Rental Yield Map: 4.8%

    1. West Drayton

    Why invest here?

    Another area likely to benefit when Crossrail is completed is West Drayton. By 2018, Bond Street will be just 23 minutes away, making it a dream for commuters who work in the West End.

    And there’s still time for buyers or investors to bag a bargain. ‘Garden village’ is the one of the area’s major new developments, with Help-to-Buy flats starting from just £280,000. Better still, the area is benefiting from an improving high street and further gentrification is expected when the east-west line launches in 2018.

    Current highest yield according to the Portico Interactive Rental Yield Map: 4.7%

    Farringdon_Street

    1. Farringdon

    Why invest here?

    Farringdon is a key are to check out if you want to invest centrally. This is because it’s within close proximity to the gentrified ‘Silicon Roundabout’ at Old Street, which is becoming a hub for technology companies and very popular with tenants and potential homebuyers.

    Furthermore, it’s also set to become a significant transport hub; Crossrail will stop at Farringdon from 2018 and locals will be able to jump on a National Rail train to St Albans, Luton, Gatwick or Surrey, or transfer onto either the Circle, Metropolitan or Hammersmith and City lines to a range of other London destinations.

    Current highest yield according to the Portico Interactive Rental Yield Map: 3.8%

    1. Wood Green

    Why invest here?

    Wood Green is a place of great opportunity, with enormous potential for long-term growth if it’s confirmed as a stop on the Crossrail 2 route. The consultation process for the confirmed route is rumoured to complete in 2017 – so we will know very shortly.

    If Crossrail 2 does run through Wood Green, the area will slowly start to become gentrified, and its new found appeal, fantastic Victorian houses, affordability and Zone 3 status will no doubt be a huge pull for renters and homebuyers.

    Current highest yield according to the Portico Interactive Rental Yield Map: 3.8%

     

    eTHZseQK*Rental yields quoted here are statistical assessments taken from Portico’s Interactive Yield Map on 13/03/17. They are not guaranteed and may be lower if the property does not achieve continuous occupancy.

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