Posts with tag: rental yields

East London currently offers the best rental yields in the capital, according to research from Portico.

The London estate agent has found that the area of Abbey Wood in East London has experienced an influx of investors buying up affordable properties to let near the train station, thanks to the arrival of the Crossrail. It believes that the availability of 12 fast central London trains every hour has significantly bolstered this area’s growth. This puts Abbey Wood at the top for the best rental yields throughout London for Q2 of 2021, at an impressive 6.7%. The highest yield in the area can be found along Yarnton Way to the east.

The agent reports that properties in the area of Dagenham Road are also benefiting from a proposed national rail service to Fenchurch Street Station in under 20 minutes. With easy access to Lakeside, Romford, and the A13, this area suits commuters and lifestyle seekers. The rental yield in this area is at 6.3% for Q2 of 2021.

Third spot for this quarter goes to the east London area of Creekmouth. Portico says the area is producing a strong rental yield of 6%, despite being largely known for its industrial estate.

Across the rest of the capital, north London’s Ponders End and Freezywater in Enfield both offer a rental yield of 5.7%.

The best rental yields in the west can be found in Hayes and Harlington (5.2%). In the south, Eastfields is top at 5.8%.

Buy-to-let hotspots across the capital are viewable on Portico’s rental yield map.

Sophie Durkin (MNAEA, MARLA), Portico Regional Director, says: “Thanks to the vaccination roll-out, Britain has been finally enjoying some return to normalcy. Rental demand has remained healthy and rental yields have consistently demonstrated a promising recovery through the past two quarters. Landlord instructions are also up 12% year-on-year, and tenant registrations have increased by a significant 22% from January 2021 to May 2021.

“Our latest rental yield research shows that there are certainly some healthy rental yields to be found in London – especially in areas experiencing significant regeneration and of course, those areas set to benefit greatly from Crossrail. East London is still the leading buy-to-let hotspot – and, as lockdown restrictions continue to ease, we expect demand from tenants to increase.”

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%.

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.”