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MILE END IS BUY-TO-LET YIELD LONDON HOTSPOT

October 14, 2015

Brixton, Tooting Bec and New Cross - South London spots with above 4 per cent yield

Mile End is London’s buy-to-let yield hotspot, according to new research published today by Portico.com, leading London estate agent.

With the majority of landlords outside Zone 1 relying on mortgage finance, there are only eight London areas with buy-to-let yields climbing above four per cent. Mile End (4.6%) offers the strongest cash returns with New Cross (4.5%) and Dalston (4.4%) close behind.

Looking south of the river, Brixton (4%) and Tooting Bec (4.1%) offer the most robust yields. However, Belgravia (2.7%) has the lowest London buy-to-let yield alongside Chelsea (2.8%) with its predominance of overseas, cash investors relying on capital growth and not rental income.

Acton (3.9%) is growing in popularity and marginally outshines upmarket neighbour, Chiswick (3.8%). While trendy Shoreditch (3.8%) and Clapham (3.7%) continue to be popular with renters keeping voids at a very attractive rate for buy-to-let landlords.

Robert Nichols, Managing Director, Portico.com, said:

“Many London landlords still rely on buy-to-let mortgages and a very small difference in yield can affect whether they make a profit or a loss. Location is everything when it comes to rentals and with rental yields at more modest levels than a few years ago, minimising void periods to maximise occupancy is more important than ever.

“Landlords will really need to chase the yield and this may well mean looking either further out into Zone 3 or, more likely, exploring areas on the periphery of popular areas which offer marginally better yields.”

ENDS

 

FULL TABLE

AREA

BTL YIELD

Mile End

4.60%

New Cross

4.50%

Dalston

4.40%

Willesden

4.30%

East Acton

4.10%

Tooting Bec

4.10%

Park Royal

4.00%

Brixton

4.00%

Highbury

3.90%

Acton

3.90%

Dulwich

3.80%

Chiswick

3.80%

Shoreditch

3.80%

Islington

3.80%

Southfields

3.80%

Tufnell Park

3.70%

Battersea

3.70%

Brockwell Park

3.70%

Clapham

3.70%

Cricklewood

3.70%

Walworth

3.70%

Barnes

3.60%

Streatham

3.50%

West Hampstead

3.40%

Kilburn

3.30%

Fulham

3.30%

Hammersmith

3.20%

Camden

3.20%

Primrose Hill

3.10%

Marylebone

3.10%

Bermondsey

2.90%

Southwark

2.90%

Notting Hill

2.90%

Bloomsbury

2.90%

Vauxhall

2.80%

Chelsea

2.80%

Belgravia

2.70%

 

For media enquiries and to interview Robert Nichols, please contact:

Steven Hilton/Emma Williams

Portico Press Office 020 7428 5314

s.hilton@portico.com / e.williams@portico.com

Notes to editors

RESEARCH METHODOLOGY

           
 

Research conducted:

01/10/2015 based on average since June 2015

   
 

Method:

Median annual rental price / median sales rental price

 
 

Source:

Publicly available property data, Portico Company Data, Land Registry data

About Portico

Portico is a residential estate agent with offices throughout London, specialising in flats and properties to rent and for sale. For landlords, we offer a range of unique packages which include monthly fees, a rental guarantee, complimentary maintenance between tenancies and assistance with tax return. For property sellers, we offer a dedicated property concierge and a complimentary interior styling service.


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