Where are the best rental yields in London?

StiflersMom

Can anyone direct me to a website that might show which parts of London offer the best rental yields?

I am looking at a property in the £200 - 250k mark

Thanks muchly

michaels

I had a 3 bed ex la near new cross gate tube (peckham borders) yield would currently be about 8%

kmmr

East london for sure. Consider around Stratford - still cheap, but plenty of demand for rental around there.

StiflersMom

Any sections of west London offering good yields?

Stratford is a good spot - lots of low end property, and high rental demand. Will take a look next weekend

Running_Horse

Thamesmead!

kmmr

there is also a bunch of development going on around Aldgate/Whitechapel. Very close to the city means you are never short of quality professional tenants.

I think there is a vogue development on Plumbers Row, although you can easily find non-new builds. If you spend a few thousand on a pretty interior of a 1 bed place you can make a tidy return.

socrates

StiflersMom wrote: »

Can anyone direct me to a website that might show which parts of London offer the best rental yields?

I am looking at a property in the £200 - 250k mark

Thanks muchly

You need to look for property that comes within the Inner London Maps for LHA purposes.

For example there can be two properties in the same area that come on different sides of a main road - one will be £175 per week the other will be £230 per week.

https://lha-direct.voa.gov.uk/Secure/LHARateSearch.aspx?SearchType=PostCode

It will take a lot of research with postcodes and different areas and types of property.

For example a one bedroom ex council flat on an estate in Stamford Hill is £960 per four weeks and a one bedroom flat in a converted house in Tottenham under quarter of a mile away is £692 - the converted property in Tottenham will cost a lot more.

Haringey Council will also pay you 8 or 11 weeks as an incentive (one off cash payment at the beg of the tenancy besides the rent) to house people from Temporary Accom - in either of these two locations. The people form TA are vetted and cannot have a history of rent arrears or anti social problems.

You can PM me if you want more information

nollag2006

I bought in Ealing earlier in the year, and am getting just above a 5% gross yield. Prices (and less so rents) have risen aggressively in that area since then, so I would have thought that this yield would be difficult to get in an area like that today.

If you are solely looking for rental yield, then some of the less salubrious areas identified above might be a runner. If you want capital appreciation, then you might need to consider a more expensive district.

Would concur that Stratford is also a good option for both yield and capital appreciation. It will see above average price inflation coming up to the Olympics but might fall behind the market after that.