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What part of London brings good rental yields?

What part of London brings good rental yields? I would like to purchase a property to let and would like to know which areas in London would be worth looking into?

Asked on Jan 13 2011, Renting in Hounslow | Report content

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  • There are many areas of London where rental property continues to be an excellent good long-term investment. Popular areas include Chiswick, Brentford, Putney and Earlsfield – however purchase prices in these areas remain high and competition for the best investment properties fierce so it may be worth looking slightly further afield for a less well-known area. One often over-looked area is Croydon in the South of London. Whilst average rental values in Croydon have risen over the last 12 months, sales prices remain low compared to many other areas in London. The result of this is that average yield on a one or two bedroom property is around 5 to 6 percent. Croydon enjoys excellent fast rail links to London and Gatwick and attracts large numbers of commuters as well as professionals working for the many businesses with offices in the town which include AIG, Nestle and Virgin Media.

    Answered on Jan 14 2011, Report content
  • The cheaper the property, the higher the yield. For that reason ex local authority properties and properties above commercial premises provide the highest yields. If you purchased a 1 or 2 bed property on an estate in Camberwell. You could be assured of rent between £800 and £950 pcm. You could purchase this kind of property for little over £100k in an auction. You could not get yields anywhere near these in the popular areas of Chiswick, Putney or Earlfield I'm afraid.

    Web reference:

    Answered on Jun 24 2013, Report content

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