If you’re looking to invest in a buy-to-let property in London, fellow landlords say your best bet is to look east.
That’s according to a recent Simply Business poll, which saw 37 per cent of landlords vote east London as the best place to purchase a new buy-to-let property.
East London boasts some of the highest rental yields in the whole of the UK - not just London - making it a popular choice for landlords.
The borough of Newham is proving particularly interesting to investors. Stratford underwent a huge regeneration before the 2012 Olympics, and is still developing today, with luxury flats currently being built around the train station. The rental yield in Stratford comes out at 4.5 per cent or higher - above the average for the capital.
Another area of interest in Newham is East Ham, which has the highest return on investment rate of any area in London.
However, if you have a smaller budget, you may want to look even further east at areas such as Rainham, Dagenham and Romford, which, while cheaper to invest in, still bring in an average rental yield of 5.5 per cent.
Even if you know approximately where in London you want to invest, it can be a little tricky to know which properties are going to give you the best return on investment.
The best type of property to buy may depend on what you’re looking for in a potential tenant. Family homes with gardens are going to be more popular if there’s a school nearby, while if you’re looking to host students, think about proximity to the nearest university.
And whoever you’re expecting to move in, keep in mind local amenities and transport links, as well as any planned development in the area.
In close second to east London, south London proved popular with 30 per cent of landlords. Both Southwark and Lambert are in the midst of large-scale regeneration projects which could see them become particularly popular areas for tenants.
On the other hand, neither west nor north London appear to be that attractive to landlords, gathering only 16 and 17 per cent of the votes respectively. High property prices in both these areas could be what’s putting landlords off, but if you have the capital then both north and west London could prove lucrative.
In our recent article on the best buy-to-let areas in London, we asked landlords to vote on their preferred area for investment.
Here's what investors voted the best buy-to-let area in London:
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Do you agree? You can have your say by heading over to the article and voting yourself.
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