London’s top 5 BTL investment hotspots unveiled

London’s top 5 BTL investment hotspots unveiled

0:01 AM, 11th September 2024, About a month ago

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London’s property market is heating up once again, offering lucrative opportunities for buy to let investors and research reveals which are the top five boroughs for the highest rental returns.

A new report by SBA Property Management highlights that the best borough in the capital for landlord investment is Tower Hamlets.

Average property values there are £456,375 and monthly rental costs of £2,244 result in a yield of 5.9%.

This is a better return than the London average of 4.81%.

‘Attractive investment opportunities’

A director of the firm, Habib Mogul, said: “After several years of uncertainty, London’s property market is again shaping up to be one of the UK’s most attractive investment opportunities.

“Falling mortgage costs and stable property prices combined with high demand for rental accommodation means buy to let property in particular offers great potential for returns.”

He adds: “Historically, large deposits and borrowing costs have been a barrier for buy to let landlords looking to invest in the capital.

“However, our research shows that many of the highest-yielding areas are those with the lowest property prices, reducing the initial investment needed to secure a piece of London’s lucrative property market.”

Other high-yielding boroughs

The research also reveals that other high-yielding boroughs include Southwark (5.59%), Newham (5.23%), Barking & Dagenham (5.06%) and Greenwich (4.96%).

Notably, these areas have some of the lowest property prices in London, making them more accessible to investors.

The report comes on the heels of a recent interest rate cut by the Bank of England, which is expected to lead to lower mortgage costs in the coming months.

This, combined with stable property prices and high demand for rental accommodation, creates a favourable environment for BTL investment, the firm says.


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