Our guest Just Landlords share which are the top areas in London with highest levels of tenant demand
Find out which are the five best areas in London for investors to buy and renovate a property
Property investors should always be on the lookout for the best opportunities to snap up a lucrative rental home, make a solid return on it and, ultimately, provide a comfortable place for their tenants to live.
If you’re currently looking at investment options in London and are seeking a property that you can renovate, then there are plenty of hotspots for you to consider.
Just Landlords, the specialist landlord insurer, has provided the top five best areas in the capital for investors to buy and renovate a property.
These locations not only have solid rental return possibilities, but are currently experiencing high levels of tenant demand.
Using the latest search data from Zoopla and rental yield statistics from Portico, Just Landlords has the top locations in London to consider and why:
1. Canary Wharf
Canary Wharf is famous for its impressive skyscrapers, home to some of the largest businesses in the country. However, it’s also become a popular home to many of its workers, meaning that professionals are constantly on the lookout for rental homes there.
With such high tenant demand, landlords are able to command significant rent prices, resulting in an average yield of 3.9% – robust for central London. Renters in this district will have high standards, however, so it’s the perfect place to invest in sophisticated interiors to improve your chances of a successful let.
Further north, Islington also has some impressive rental returns on offer, at an average of 3.7%. This is due, in part, to strong levels of tenant demand in the area and lower house prices than some of its other north London counterparts.
If you’re in the market to buy and renovate a property in the capital, then you can invest here for an average of £778,000. By putting money into the décor of the rental home, you will be able to command a high monthly rent price, which will greatly improve your yield.
Although Camden has a higher average house price than Islington, it remains a hugely popular place to live among private tenants. And, with high rent prices, it still delivers an average return of 3.7%.
Renters in the area will be seeking fashionable pads to complement their surroundings, so investing in renovation work could ensure that your property stands out from the crowd on the lettings market.
South of the river, Lambeth offers a slightly lower average house price for investors with low entry levels (although it’s still central London!). This makes it a good choice for those who want to put more money into the refurbishment of the property.
It is also very popular with tenants looking for new rental homes, so you can be sure that a well-presented property will be snapped up quickly. And, with an average yield of 3.6%, you can make a solid return on investment.
Last, but not least, Battersea has become well known in the property industry in recent years for its growing number of build to rent developments. As a result of this investment, the standard of rental homes in the area is vastly improving.
This means that tenants looking for a home will be pickier than ever, requiring state of the art interiors. This makes Battersea a perfect opportunity for investors looking to renovate a property – it also has an average return of 3.5%.
It can be difficult to decide where to invest in property, particularly if you’re planning on renovating, and especially with so much political and economic uncertainty in the air at the moment.
For investors considering a purchase in London, follow Just Landlords’ guide to start your journey on the right path.