Landlords who are looking to take advantage of the stamp duty holiday will be keen to find a new rental property before the March 2021 deadline, which is where we come in. Recently, we looked at the best buy-to-let hotspots for landlords in Manchester, but now we're heading to the capital.
We've compiled a list of emerging buy-to-let hotspots in London that are ripe for investment. These areas are definitely on the rise and proving to be smart investments for savvy landlords. So read on and find out where London's emerging buy-to-let hotspots are located.
Hounslow, West London
West London makes its first appearance on our list with the neighbourhood of Hounslow. Currently, average property prices sit at £412k. However, there are many homes on the market for around £375k.
Hounslow lies just 30 minutes west of central London and offers convenient travel connections for commuters. Over the last six years, the area has seen significant regeneration with the construction of 2,500 new homes. Another 3,000-plus are planned, and will surely cement Hounslow's status as a London buy-to-let hotspot.
Average rents in Colindale: £1,330
Average house price: £412,000
Average yields: 3.8%
Croydon, South London
Ok, so Croydon has practically emerged, but with an average property price of £371k, homes in the south London postcode are still a whopping £288k more affordable than the London average. And with yields as high as 5%, Croydon looks like a smart short and long-term investment.
With excellent travel links that go into London Bridge in just 22 minutes, Croydon is well connected and features a range of new housing that attracts modern-day renters. The introduction of Boxpark and a booming tech scene has seen it labelled the Shoreditch of south London, and with more regeneration to come, Croydon's popularity is set to soar in the coming years.
Average rents in Croydon: £1,220
Average house price: £371,000
Average yields: 3.9%
West Drayton, West London
House prices in West Drayton are marginally lower than Croydon's, with a home costing in the region of £370k. The neighbourhood of West Drayton combines lots of open spaces and canalside living with typical London vibes in the west of the capital.
With direct trains to Paddington and Reading, residents of West Drayton have plenty of travel options – especially when the Elizabeth Line goes live. It's set to have a stop at West Drayton, which will make the area even more connected and a commuter's dream.
Average rents in West Drayton: £1,270
Average house price: £370,000
Average yields: 4.1%
Colindale, North London
The NW9 postcode of Colindale continues to see major redevelopment. First, it came with the Beaufort Park development on the site of the former RAF Hendon Aerodrome. Now, there is a range of new-build developments along with shops, restaurants and cafes in the area.
Colindale tube station is on the Northern Line and gives residents direct access to the West End in 30 minutes and the City in a little over half-an-hour. Average sale prices are just shy of £419k, but you can still pick up a one-bedroom apartment for around £350k if you do your research. Therefore, you can bring yields up to just over 5%.
Average rents in Colindale: £1,530
Average house price: £419,000
Average yields: 4.3%
Canning Town, East London
East London's Canning Town currently has one of the highest average yields in the capital with just over 5%. Thanks to excellent travel connections on the Jubilee Line, residents can be in Canary Wharf in a matter of minutes. There's also direct access to the West End.
Nearby Custom House will feature a stop on the Elizabeth Line, while DLR services are also available. With Canary Wharf just under three miles away, it's the ideal place for commuters working in one of London's primary financial districts.
Average rents in Custom House: £1362l
Average house price: £362,000
Average yields: 5.3%
The capital will always remain as a buy-to-let hotspot, but there are still plenty of great rental deals to be had in London if you're a savvy buy-to-let investor. You can find neighbourhoods that are below the London average for property values and offer good yields. And the areas on our list are the perfect starting point.
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