More people than ever are renting their homes, and renting for longer periods of time. This is good news for landlords in London, where rental rates have gone up by close to a third in the last decade. For ultra-desirable areas like Westminster, average weekly rent figures are even higher than the capital’s average – which makes it a location well worth considering.
What’s so Special About Westminster?
Westminster remains one of London’s most sought-after locations, with both homebuyers and tenants keen to move into the area. It’s a World Heritage site, and boasts landmarks such as Big Ben, the Houses of Parliament and Westminster Abbey. However, it’s not just the history and culture that draws people to its streets. Westminster has undergone extensive improvements in recent years (particularly around Victoria Station), which has made the area feel more diverse and modern; appealing to a wider range of tenants.
Another thing that makes Westminster attractive to tenants is the fact that it’s so well connected. There are three underground stations serving the area; Westminster, Victoria and St James’ Park – with regular trains travelling to Canary Wharf, Oxford Circus and other popular locations across the capital.
Additionally, Victoria Station links residents to cities and towns further afield (across most of Surrey, Kent and Sussex); and there are numerous buses in operation around Westminster too.
Although Westminster is situated in the heart of the capital, it remains considerably cheaper than its neighbours; Belgravia, Knightsbridge and Mayfair. In fact, at the time of writing, you can expect to pay around a third less for a property in Westminster, which offers the opportunity to get a lot more house for your budget.
Given how London property prices continue to climb, it looks likely that any investments made now will rise in value in the future – offering landlords not just the chance to generate money from rental yields, but from capital growth too.
What Sort of Property?
If you’re focusing largely on rental yield, then the best option (and certainly the most plentiful on the market) is a one- or two-bedroomed apartment. You’ll find some great examples for sale on the roads surrounding Westminster Cathedral, and in addition to the historic apartment buildings, there are also several luxury developments coming to the market. These tend to be popular with young professionals, who are usually happy to pay a higher rent if the standard of accommodation is also high.
The Georgian properties on Old Queen Street and Queen Anne’s Gate are a good choice too; they function well as either a family home or HMO, and the period features and spacious dimensions are likely to appeal to tenants. This is especially the case if the property comes with outdoor space.
Further developments are scheduled for Westminster, so it’s worthwhile keeping up-to-date with the latest property news for the area.