Kings provides its insight into the current Buy-to-Let 'hotspots' in London...
published on 03/10/2016
London`s current top hotspots in East London for buy-to-let investors… Location, location, location! (Part 1 of 4)
Like any investment, Buy-to-Let comes with no guarantees, but for those who have more faith in bricks and mortar than stocks and shares, we have gathered some of the emerging hotspots for investment in the capital.
Of course, there are certain boroughs that consistently perform substantially better than others but as prime central London locations become inaccessibly expensive to modest investors, areas that were once considered less desirable soon turn into veritable ‘gold mines’ as investment in infrastructure and development increases in frequency and quality. Unsurprisingly, many of the areas are located in the outer London boroughs where rental returns are usually higher than those returns found on pricier, prime locations.
Your investment needs to be carefully thought through if it is going to bring a consistent return and strong capital appreciation over the medium to long-term… So as ever, we encourage you to do your research!
Below is Kings’ assessment of the current BTL ‘hotspots’ in London with their respective projected net annual returns, and in our opinion these represent the areas that you should be looking in if you are considering investing in London…
*(The percentage figures below represent projected gross yield as an average across each area cited. The percentage figure refers to the gross annual return on investment)
• East London
1/ Newham – 5.5%
2/ Stratford – 4.8%
3/ East Ham – 5.6%
However, don`t forget to look a little further for more affordable properties and average gross rental yields easily over 5.5%
4/ Romford – 5.5%
5/ Dagenham – 5.4%
Stay ‘tuned’ for part 2 of our 4 part series…