London rental yields are recovering from the pandemic
By |Published On: 9th May 2022|

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London rental yields are recovering from the pandemic

By |Published On: 9th May 2022|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

London rental yields are on the rise after a temporary pandemic slump, according to research by rental platform Rentd.

It says southern areas of the capital are providing particularly strong opportunities for buy-to-let landlords.

London’s property market was hit by a dip in demand during the pandemic, as people prioritised green, open space over urban living. This, alongside a reduced need to commute to the office, created a drop in demand for rental homes in England’s biggest city. 

This fall in demand caused rental values to dip and led to a fall in yields. However, with the London rental market improving, Rentd has seen yields increase again.

In the past year alone, average yields have climbed by 0.3%, from 3.3% to 3.6%. However, there are a good number of areas where yields have climbed more dramatically. 

In the SE17 outcode area around Walworth, yields have increased by 1.4%, from 4% to 5.4%; and up in Hampstead Heath’s NW3 area, they’re up 1.1% from 2.9% to 4%. 

In the Forest Gate area of E7, yields have increased by 1%, from 3.7%-4.7%, and the same increase applies to both SE16 and SE8. 

In E9, SE4, SE5, CR4, and EN4 respectively, yields have increased by 0.9% on the year.

Ahmed Gamal, Founder and CEO of Rentd, comments: “The capital’s rental market is showing a solid return to form after a slightly concerning dip in the early days of the pandemic. It was probably a little naive to think that renters would reject London in the long-term. It is, after all, one the greatest cities on earth and the opportunities it presents are unmatched in the UK. 

“It’s interesting to see the south of the city enjoying much of the strongest yield growth, suggesting that, while people are still happy to live in a major city, they also want to maintain easy access to the green and coastal locations easily accessible from the south.”

About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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