Areas with best rental yields in London revealed by Portico research
Em Morley - March 17, 2021
With lockdown restrictions being gradually eased, and major mortgage lenders such as Barclays, Accord Mortgages, and Skipton International cutting rates, London lettings agency Portico looks into the best property investment locations in the capital.
According to Portico’s data-analysis and interactive rental yield map, east London offers the best rental yields in the capital.
Within east London, Barking has one of the lowest median house prices across Greater London According to the Evening Standard, the average house price in the borough was just over £300,000 at the end of last year. Portico also reports that it has the best current rental yield in the capital at 5.9%.
Although property prices are slightly higher in Upney than in other parts of east London, Portico points out that landlords can still find investment opportunities here with a yield of 5.8%. Third on the list if Wall End, with a 5.8% rental yield.
Across the rest of the capital, north London’s Brimsdown offers a yield of 5.6%. The best yield in the west is 5.1% in Hayes and Harlington, and in the south, Mitcham offers 4.9%.
East London,Top Yields by Neighbourhood
Barking and Dagenham
North London, Top Yields
South London, Top Yields
Willowbrook Estate, Peckham
West London, Top Yields by Neighbourhood
Hayes and Harlington
Robert Nichols, CEO of Portico, says: “Landlords and tenants have both changed their thinking in recent years due to a combination of factors. While property prices rose overall during the first half of the last decade and climbed 74% between 2010 – 2020, rents largely followed modest wage rises, and rental yields suffered somewhat as a result – especially in areas around central and West London. Heading into the new decade, coupled with Brexit, the global health crisis heaped further uncertainty on an already subdued property market, and that has carried into the current year.
“Despite this, our research shows that there are still healthy rental yields to be found in London – if you know where to look. Outer London areas are actually seeing rent increases between 1-3% as tenants – now spending a lot more time at home – migrate from more central areas to the suburbs looking for more space. East London is still a buy-to-let hotspot – and we expect demand from tenants to increase as lockdown restrictions ease.”