With many permanent London residents choosing to house-hunt elsewhere post lockdown, house prices in London have fallen despite the national market boom.
However, lower house prices in the capital is far from bad news. Combined with the stamp duty holiday until March 2021, that has just under six months left at the time this article was published, now is the perfect opportunity for landlords to invest in a buy-to-let.
While the market may have slowed in London, demand, particularly for rentals, has far from ceased. And with, hopefully, a return to normal on the horizon in 2021, London could experience a real boom in terms of popularity and demand when people choose to return. In the next few years, the novelty of working from home and moving to the country and suburbs may wane, and could be replaced by a new energy and desire for city life – the roaring twenties predicted pre-Covid may make an appearance after all.
So, allow the economic conditions to work for you, and make a long-term investment that could prove very fruitful in the coming years. Here are our top most profitable London boroughs for purchasing a London buy-to-let.
In top place is Havering, the most profitable borough in the capital to purchase a buy-to-let. Located in East London, Havering has great transport links and is made up of areas such as Upminster, Romford, Hornchurch and Rainham. House prices in Havering are very affordable by London standards, with the average price coming out at £395,832 while monthly rentals remain relatively high, the average being £1,895 pcm.
Just five miles east of the City, Newham is a hotspot for commuters in the know, offering affordable living and an extremely convenient location. The average flat price in Newham is £354,705, with average rental coming out at £1,531 pcm.
Barking and Dagenham
Featuring the three main towns of Barking, Chadwell Heath and Dagenham, this borough lies just nine miles from the centre and has proven popular with millennials. Fortunately for the younger generation, house prices here are lower, averaging £302,060, with an average monthly rental of £1,353.
Other good places that provide a generous rental profit include Enfield, Lewisham, Hounslow, Harrow and Waltham Forest.
For more information or to discuss our services, contact London Building Surveyors today.