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Best Rental Yields In London Quarter 2

June 2, 2021

The vaccine roll-out has finally ushered in the lifting of many lockdowns and restrictions, and with that comes the promise of improved economic conditions. This should have a positive impact on the property market, giving investors a better outlook as we head into the second half of 2021.

With that in mind, we’ve analysed the best rental yields in London Q2 in North, South, East and West London, and have listed them below. These are just a few of the areas that are of interest as the economy continues to re-strengthen, so be sure to check out our rental yield map, too!

NORTH LONDON

1. Ponders End, Enfield - 5.7%

Ponders End is the southeastern-most part of Enfield, North London, centred on the Hertford Road. Potters End has significant redevelopment potential and is only 20 minutes by train to Liverpool Street station. It’s also been proposed as a Crossrail 2 station, which would really hike up the area’s property prices.

2. Freezywater, Enfield - 5.7%

Freezy Water is another Enfield neighbourhood, bordering Hertfordshire. It does lack some great transport connections, although it is only 15 minute’s walk to Enfield Lock Station, offering direct rail to central London. The area boasts a good mix of flats and houses, making it popular with both professional couples and those wanting to start a family in an affordable location.

3. Edmonton (Claverings Industrial Estate), Enfield - 5.6%

According to recent council reports, the Claverings Industrial Estate could soon be sold off, allowing for redevelopment of the estate to provide energy-efficient, modern employment facilities. The report states that it is far more viable to redevelop the site than to consider the costs involved in bringing the 1950s facilities up to date. Such modernized redevelopment plans and an extremely strong rental yield of 5.6% make this area one to watch.

4. Edmonton Green, Enfield - 5.5%

Edmonton Green, in the borough of Enfield, is an investment hotspot in north London with big plans moving forwards. It is set to benefit greatly from the Meridian Water £1.5 billion regeneration scheme, which will deliver 6,700 new jobs and 10,000 new homes across former industrial land spanning 210 acres, set on the banks of the beautiful River Lea.

5. Enfield Wash, Enfield - 5.4%

Enfield Wash in the borough of Enfield, north London, is located either side of Hertford Road between Turkey Street and Bell Lane, Hoe Lane and Ordnance Road. Enfield Lock Overground Station and the Turkey Street Underground are close by for great links into the city and make this a great commuter hub.

6. Northumberland Park (Tottenham) - 5.2%

Northumberland Park is in the Tottenham area of London Borough of Haringey. It is largely residential, consisting of houses and flats and is the location of Tottenham Hotspur F.C. The Northumberland Development Project is intended to be a catalyst for Tottenham’s 20-year regeneration program, as planned by the Haringey Council. Lots of improvements on the cards and a healthy rental yield make Northumberland Park a prime investment area.

Read More: How Is Rental Yield Calculated?

SOUTH LONDON

1. Church Road, Mitcham, Merton - 4.9%

Church Road in Mitcham sits within the Cricket Green electoral division/ward, which is in the constituency of Morden and Mitcham. Close to many great amenities as well as Colliers Wood Tube Station on the Northern Line, it’s an ideal location for an investor looking in this pocket of the capital.

2. South Beddington - 4.9%

Close to Croydon and retaining its Surrey village feel, South Beddington is in the outer London borough of Sutton. A commuter hub that enjoys national London rail links, the area features a number of larger properties, with the wider Sutton area benefiting from over £400 million in redevelopment investments to the town centre and homes and dining options. Of particular interest to landlords is the proposed Tramlink extension - this would run from north to south of the borough and could significantly increase house and rental prices.

3. Eastfields, Manor Way - 5.8%

Eastfields is situated between Streatham and Mitcham in South London. Home to Mitcham Eastfields railway station and St Mark’s Academy, the area has two council estates. Clarion Housing Group is currently progressing the regeneration of Eastfields Estate, along with neighbouring Ravensbury and High Path, focusing on improving accommodations and better connecting residents with the wider community.

4. Thornton Heath - 4.7%

Located in the Croydon borough, Thornton Heath is a growing area with great connections. In only 22 minutes you can be in Victoria, or you can take the overground to London Bridge in just 30 minutes. Popular with expanding families, this area is in a promising stage of development.

5. Coulsdon - 4.6%

Coulsdon is a fairly quiet town, close to its Purley neighbour and with easy access to Croydon’s comprehensive retail facilities. It’s also a short drive to the M25 and M23, and features great transport links with three railway stations, making it ideal for commuters.

6. Whyteleafe South - 4.6%

Although not technically in London, Whyteleafe is a village conveniently located on the North Downs within easy reach of the capital and Croydon, whilst teetering on the fringes of beautiful countryside. With a wide selection of properties including flats, terraced and semi-detached houses, the village has easy access to three railway stations. Its private roads offer up larger detached properties that enjoy a more rural feel, something tenants are prioritising now.


EAST LONDON

1. East Yarnton Way - 6.7%

Promising 12 fast central London trains per hour, the imminent arrival of the Crossrail has seen savvy investors snapping up affordable properties near the station in this area for some time now. The highest yields in the area, however, are currently found to the east on Yarnton Way.

2. Beam River Surroundings, Dagenham Road - 6.3%

Along the Beam River, properties in the Dagenham Road area are ideal for commuters with a new national rail line proposed for direct service to Fenchurch Street station within 20 minutes. The area also boasts immediate access to the A13, walking distance to Dagenham Dock Station and a quick 15 minute drive to Lakeside and Romford, offering an abundance of restaurants, shops and activities. 

3. Creekmouth - 6%

This area may be best known for its industrial estate, yet the area produces a strong yield of 6%.

Around Thames Road and River Road, the industrial area is in fact one of Barking and Dagenham’s largest areas of employment, and is popular with renters after convenience on a budget. Unfortunately, the area doesn’t have its own tube station, but an overground extension at nearby Barking Riverside has been proposed and there is a push for the service to start this year.

4. Barking - 5.9%

With regeneration to include new business and retail spaces as well as new homes, Barking has recently seen significant redevelopment with a focus on making the town a more desirable place to reside. With house prices sitting at around a third of the London average, there are still plenty of bargains and strong investment opportunities to be had in this up and coming neighbourhood.

5. Little Heath - 5.8%

Little Heath, in Redbridge, is not far from Chadwell Heath and attracts renters seeking green spaces, attractive period homes and outstanding schools. Its desirability will also increase once Chadwell Heath benefits from the imminent Crossrail roll-out.

6. Upney - 5.8%

In the east of the Barking & Dagenham borough, Upney has its own underground station, providing easy access to the city and central London. While average property prices are currently sitting higher than the rest of the borough, there are still plenty of investment opportunities on the market.

7. East Ham (Newham Way) - 5.7%

Despite witnessing some rapid property price increases, there are still some bargains to be had in East Ham. Located in the borough of Newham, the multicultural area has a vibrant, traditional East End feel with many older, attractive properties at affordable prices.

WEST LONDON

1. Hayes & Harlington - 5.2%

With the promise of Crossrail increasing this area’s appeal, Hayes & Harlington is fast transforming into a high-tech business hub that is already bringing in global companies. With a £250 million development in the works that’s set to create new commercial and leisure facilities as well as 650 new homes, this area is one to watch.

2. West of Northolt Station (Church Road) - 4.9%

Church Road in Northolt is in the Northolt West End ward, in the constituency of Ealing North. With Northolt Central Line Station and the amenities of Uxbridge, Hayes, Greenford and Ealing all in close proximity, the area of Church road is a prime location for investment.

3. Uxbridge - 4.7%

Sat at the end of the Metropolitan and Piccadilly lines, Uxbridge is well connected, yet away from all the hustle and bustle of the city. Heathrow Airport is at your doorstep and the esteemed university of Brunel attracts many students and athletes to the area. Uxbridge is a largely family-oriented area and is still a good place to search for a family home, while for downsizers, there are still plenty of bungalows on offer.

4. Hayes & Harlington Station - 4.7%

Thanks to the significant developments for the area, it's no wonder that there are some impressive yields to be found close to the station. The Hayes & Harlington station is also set to benefit from major proposed improvements in preparation for the new Crossrail Elizabeth line.

5. North Cheam - 4.7%

North Cheam is an area within the suburb of Cheam, which is located in the London borough of Sutton. With a short commute to central London, North Cheam has maintained a village feel thanks to its mock Tudor shop-fronts and buildings, village activities and local pubs. The borough of Sutton is well known for its excellent schools, which drives young families who want to live on the fringes of London to North Cheam.

6. Hayes End / West Drayton - 4.6%

Another area poised for rapid growth ahead of Crossrail's arrival, average property values are currently lower than those in surrounding districts, yet the area is a solid employment hub. With good transport links and proximity, the area attracts many employees from both Heathrow Airport and Stockley Business Park.

Find out more about our investment opportunities and London properties for sale

This is only a small selection of the areas throughout London that are demonstrating high yields for investors. To find out more about the best investment opportunities in these or other areas, get in touch with our property experts on 020 7099 4000 today! !>

You can also view all our London properties for sale, or get an instant online property valuation or rental valuation.


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