As of November 2021, east London continues to offer the greatest rental returns for property investors in the capital, according to research from Portico.
Creekmouth in Barking, known for its large industrial estate, is currently the hottest investment opportunity in the capital with a rental yield of 6%, followed closely by Barking and Cranbrook on 5.9%, with many other east London suburbs breaking the 5.5% barrier.
Across the rest of the capital, north London’s Freezywater and Ponders End offer a healthy yield of 5.7%. The best yield in the west is still 5.1% in Hayes and Harlington, and in the south, West Wickham has taken the top spot at 4.8%. The north’s top performer of Freezywater currently lacks good transport connectivity, but Enfield station is close by and will soon reap the benefits of the Crossrail completion.
Sophie Durkin, Portico‘s Regional Director, said: “There may be signs in some regions of increasing inventory as we head out of the pandemic, but it will be some time before any real balance is restored in the market.
“While London remains a strong sellers’ market overall, the demand for rentals is high as the country reawakens and the outer boroughs of the capital once again become a highly desirable location for professionals and families alike.
“Many of the capital’s highest rental yields are found in areas with lower-than-average London property prices, despite the fact that many of those areas are experiencing an exciting time of growth and regeneration. These pockets are currently providing some excellent opportunities for investors.”
