If you’re looking to secure a lucrative buy-to-let investment, London is your best bet. But which property hotspots in the capital are the best places to invest in?
LendInvest’s recent Buy-to-Let Index has found that London is the most profitable part of the UK to invest in, with east London offering the highest rental yields, of 7.4%. Manchester follows at 6.8%, with southeast London close behind at 6.7%.
The capital also offers the highest capital gains in the country, with house prices in southwest London rising by a whopping 13.8% per year between 2010-16.
If you’re looking to benefit from both high rental yields and capital gains, London is without a doubt your best bet, according to estate agent Portico. The firm takes a look at the property hotspots that are tipped for growth in the coming years…
In the last 15 years, Walthamstow has changed beyond recognition, with prices rising by more than 50% in most parts of the area. And although capital growth has increased more quickly than rents in the area, buy-to-let landlords are just as keen as homebuyers to purchase property in this location. The general consensus is that Walthamstow still has further growth to come, thanks to improving transport links to the City and the sheer level of investment in the area, making it a fantastic place for young professionals to live.
5 London Property Hotspots to Invest in
All eyes are currently on Forest Gate, as Crossrail has caused house prices to soar by 65.5% in the area since work began in 2009. Gentrification is also in full force too, with trendy restaurants opening and young professionals moving into the area. Portico believes that prices will continue to rise in Forest Gate, as more people move in and discover what a great and well-connected area it is to live in.
New build properties around the station are particularly desirable and are being snapped up almost instantly by City workers looking for affordable homes and a quick commute.
Manor Park has also benefitted from house price growth since work began on Crossrail. Property values have shot up by a huge 57% since 2009, however, the average house price is still below the London average, at a reasonable £341,253.
The line isn’t due to open until 2019, so there is still time for further capital growth in Manor Park. With plenty of beautiful parkland, the area is popular with families, so a three or four-bedroom property investment would be a good choice.
Over the past year, SE1 has soared in popularity, thanks to extensive generation around the Shard and infrastructure improvements.
It is an ideal spot to both live and invest, thanks to its central location, fascinating history and vibrant food scene. Residents can enjoy strolling through the popular Maltby Street Market on a Saturday, which offers some delicious street food, wandering down Bermondsey Street to stop off in one of the many boutiques, or moseying around Borough Market, which is one of London’s most popular attractions.
Portico anticipates demand for housing and prices to keep rising, as the Thameslink upgrade and improvements to London Bridge station continue.
Hackney is still considered a hotspot for London’s hipsters, and house prices are rising in line with demand. The area bordering Islington is a real treat, offering smart Georgian and Victorian terraces and warehouse conversions, as is the area around London Fields, which has experienced huge regeneration in recent years.
The area offers direct connections to the City, Docklands and West End, fantastic schools and many parks, shops, bars and restaurants.
Which property hotspot will you invest in?