Buy to Let Central London: Best Buy to Let Areas Near Central London
The London Buy to Let market is one of the most challenging property markets in the UK. This is because, despite being one of the most expensive areas of the country to purchase property, the area is comprised of a number of separate sub-markets, each with its own character.
In this blog post, we look at where the best buy to let yields can be achieved close to central London.
Why Buy to Let London Property is a Good Idea
There is no denying it, investing in London property is expensive. This has many landlords questioning why bother. There are several reasons why London remains a brilliant buy to let area. Firstly, in most areas rental demand is huge, so you should never be short of tenants. Secondly, the capital has enjoyed good capital appreciation in the past ten years, with landlords in some areas almost doubling their original investment. Thirdly, rents are high, meaning good yields can still be found despite a higher original outlay in cost. Fourthly, London is generally a stable market, safe from the property price fluctuations experienced in other parts of the UK.
Best Buy to Let Areas Near Central London
Central London has some of the most expensive property in the world. That means yields are usually low here. For example, Westminster overall offers a yield of just 2.1%. Rents are also high here, with many tenants preferring to choose to rent in nearby areas that provide better value for money.
The areas close to central London benefit from the same high demand, however, enjoy lower property prices with higher yields to be achieved. It is still possible to find opportunities in areas which are still very accessible for Central London. Often, the locations south of the Thames offer the best value.
Bermondsey is situated on the south bank of the River Thames in the London. The area enjoys great transport connections and remains popular with students and young professionals who are drawn to its vibrant cultural scene. Bermondsey has a diverse property portfolio with homes to suit all lifestyles. Due to its history as an industrial centre, the area boasts a number of warehouse conversions with many new build apartments attracting affluent workers.
Bermondsey boasts its own tube station which is on the Jubilee line, connecting the area with popular locations like Westminster and Waterloo in as little as 5 minutes. The area is also due to receive an overground station, providing Bermondsey with even greater transport connections into central London.
What’s more, Bermondsey offers buy to let yields over double that of nearby Westminster. Rental yields in this area stand at approximately 4.6%, making Bermondsey a great area for investors.
Bordering Bermondsey with a Thameside location is the area of Rotherhithe. Rotherhithe has been significantly redeveloped in recent years, transforming an industrial port into a green, pleasant residential area. Rotherhithe property is incredibly varied, from luxury waterside apartments to affordable one and two-bedroom flats and houses. This makes the area popular with both young professionals and families, who are drawn to its traditional housing and leafy parks.
Like Bermondsey, Rotherhithe benefits from access to the Jubilee line via Canada Water Station. This connects the area to the employment centres of Westminster and Waterloo in under 10 minutes. The area also benefits from access to the overground, connecting it to popular areas of leisure like Shoreditch.
Rotherhithe enjoys similar rental yields to nearby Bermondsey at around 4%. This makes it a great option for investors looking to attract young professionals who work in the city.
Elephant and Castle
Elephant and Castle is often regarded as the most affordable location in Zone 1 due to regeneration coming relatively late. In recent years the property has been transformed, reinstating the area as the “Piccadilly of the South” (as it was known in Victorian times). The area remains popular with young professionals and families attracted to its affordable housing and good transport connections. The area boasts a range of properties, suited to all lifestyles, from new build apartments to post war housing and period villas.
One of Elephant and Castle’s chief assets is its brilliant transport connections. Both the Bakerloo and Northern line service its tube station, connecting Elephant and Castle to central London in under five minutes. The Jubilee line is also just a short walk away at Southwark.
Buy to let yields in Elephant and Castle stand at around 3.6% - far above that of nearby Waterloo. Demand in this area is high, making Elephant and Castle a safe zone for buy to let landlords looking for solid returns.
Buy to Let Property London
If you are looking to invest in buy to let Property in Central London, get in contact with Hastings International. We have a diverse selection of London properties for sale in the above areas, perfectly suited to buy to let investors. For more information, call us on 020 7231 1066.