Portico London estate agents have revealed their list of the top 10 places to buy-to-let in London.
The areas are listed in order of highest potential yield to lowest potential yield, according to their Interactive Rental Yield Map.
Along with a potential yield, Portico’s Regional Director, Mark Lawrinson, has given his expert opinion on why each area is a buy-to-let hotspot.
The majority of area’s touted as hotspots are located in the outer London boroughs – Ilford, Hounslow, Greenford, Croydon – though the agency states that Whitechapel and King’s Cross are safe bets if you want to invest centrally.
Here are their top 10 places to buy-to-let in London:
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Ilford
Current highest yield using the Portico Interactive Yield Map: 5.5%
“Ilford will be on the Tube map when Crossrail arrives next year which will attract a new wave of renters looking for somewhere affordable and well connected to live. The area is being touted as the new Bethnal Green, thanks to an array of cafes and shops popping up. All in all, Ilford is being smartened up encouraging first-time buyers to settle down here.”
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Hounslow
Current highest yield using the Portico Interactive Yield Map: 5.3%
“Hounslow is seeing an onslaught of people who’re moving form Isleworth and Twickenham to get more for their money. The area’s proximity to Heathrow and West London and close links to M4 to Oxford and the Cotswolds has made it an attractive area for investment.”
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Greenford
Current highest yield using the Portico Interactive Yield Map: 5.3%
“Recent regeneration has put Greenford in the spotlight. It’s increasingly becoming a popular commuter hotspot benefitting from good transport connections and cheap house prices. Another USP of the area is it’s a stone’s throw away from Ealing Broadway which is now benefitting from the Night Tube.”
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Croydon
Current highest yield using the Portico Interactive Yield Map: 5%
“Croydon has undergone a massive regeneration and its transport links to central London make it a buy to-let-hotspot. It’s an area where more and more people live and work which is creating its own market and micro-climate. Not to mention, the area is way more affordable in comparison to London prices.”
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Wood Green
Current highest yield using the Portico Interactive Yield Map: 5%
“For those planning further ahead, look at the Crossrail 2 map, and focus on areas such as Wood Green and the “Haringey Ladder” which is primed for regeneration and gentrification.”
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Whitechapel
Current highest yield using the Portico Interactive Yield Map: 4.8% around Fenchurch Street station
“Most key investment areas are now in Zones 3 outwards, but if you are keen to buy centrally then Whitechapel is a safe bet, again thanks to key infrastructure changes such as Crossrail and the fact that the silicon roundabout is becoming a great area in which to live, work and play.”
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Forest Gate
Current highest yield using the Portico Interactive Yield Map: 4.8%
“The imminent arrival of Crossrail has caused property prices in Forest Gate to rocket. But despite an increase in prices, it’s still one of the cheapest areas to live in London – which is a big attraction for investors, homebuyers and tenants.”
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West Drayton
Current highest yield using the Portico Interactive Yield Map: 4.8%
“West Drayton is undergoing a huge facelift as a result of Crossrail, and its proximity to west and central London, as well as Heathrow airport makes it a great base for young professionals and those searching for a Pied à Terre. Landlords here can expect healthy yields and strong capital growth.”
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King’s Cross
Current highest yield using the Portico Interactive Yield Map: 4.4%
“Fantastic regeneration is going on in the area which was once the capital’s red light district and was almost uninhabitable. With the largest network hub in London offering trains into Europe and possible HS2 to Birmingham, King’s Cross is attracting a lot of young professionals. It’s also a commercial hub with businesses including Google opening up an HQ here.”
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Acton
Current highest yield using the Portico Interactive Yield Map: 4.1%
“Though the capital gains aren’t as strong as they were two years ago, Acton is still a hotspot for investors and one of the best connected areas in London, plus a Waitrose is soon opening which has a habit of pushing up property prices. The launch of the Night Tube (Central Line) will ensure areas like West Acton and North Acton remain hotspots for tenants who want easy evening access to and from central London. In fact, we expect areas at the ends of the Victoria, Central, Piccadilly and Northern Line to all benefit from house price growth.”
