London is not the most profitable place for landlords to invest. Although there are plenty of tenants looking for properties, house prices are too high, which impacts greatly on rental yields. Despite this, one London estate agent believes there are a few buy to let hotspots for quick off the mark landlords.
Ilford
Ilford will be well connected once Crossrail arrives in 2017, so it is an up-and-coming area for commuters. Property prices are still affordable in Ilford, so rental yields are around the 5.5% mark.
Hounslow and Greenford
Hounslow is close to Heathrow and is well connected, thanks to the M4 running nearby. Greenford is also attractive to renters, as it too benefits from good transport connections and now the Night Tube. Both offer a rental yield of 5.3%.
Croydon and Wood Green
Croydon is a nice little hotspot for buy to let landlords. It is also a lot more affordable than central London and you can expect to enjoy rental yields of around 5%. Wood Green is on the Crossrail 2 map, so it is primed for regeneration. Again, rental yields are said to be 5% here.
Whitechapel and Forest Gate
Whitechapel is one of the few central London locations that offer a decent return for landlords. Crossrail has put Whitechapel on the map and many people are moving here. Forest Gate has also seen a significant boost thanks to Crossrail, yet it is still very affordable. Both offer rental yields of 4.8%.
Other areas worth considering are West Drayton, King’s Cross and Acton.
