London, the bustling capital of the United Kingdom, has long been an attractive destination for real estate investors. With its rich history, diverse culture, and thriving economy, it’s no wonder that many landlords consider London an enticing market to invest in. One of the key factors that makes London an appealing choice for landlords is its robust economic growth. Due to strong economic initiatives and recovery, London had the largest GDP growth with a 4% increase in the second quarter of 2022. The city is a global financial hub, home to numerous multinational banks and corporations such as HSBC and Barclays. This economic strength ensures a steady demand for rental properties, providing landlords with a reliable stream of income.
London offers a wide range of property types, catering to different rental market segments. From luxurious apartments in affluent neighbourhoods to more affordable options in up-and-coming areas, the city presents diverse investment opportunities. This flexibility allows landlords to tailor their investments to meet specific financial goals and target markets.
When it comes to entertainment and lifestyle, London shines brightly. The city is renowned for its world-class theatres, museums, art galleries, and iconic landmarks such as Big Ben and Buckingham Palace. The vibrant nightlife, diverse culinary scene, and a plethora of shopping options further enhance the appeal for potential tenants. The city attracts people from all over the world, seeking employment, educational opportunities, and a cosmopolitan lifestyle. With a population growth of 1.12% from the start of 2022 until now, there is an increased demand for housing, resulting in a consistently strong rental market.
Read on to learn about the most popular buy-to-let investment locations in London and what tenants and features you need to consider for each.
How is the Rental Market in London?
The London market is a dynamic and diverse landscape with various sectors and industries driving its economy. As a global financial hub, London attracts businesses and professionals from around the world. The city’s property market has historically shown resilience and growth, with high demand for both rental and sales properties. The rental market remains strong, fuelled by a growing population, high employment rates, and an eclectic cultural scene. Property prices in prime locations can be high, but there are opportunities for investors and tenants in different areas.
London’s transportation system is well-developed and efficient, providing easy access to all parts of the city. The enhanced accessibility to amenities and services makes rental properties in all areas more attractive, providing people with more options when deciding where to live. With world-leading universities, such as Imperial College London, the city is a popular destination for students and researchers. Overall, London’s reputation as a global city, its economic strength, cultural richness, and diverse opportunities make it an attractive and exciting place to live and invest in.
Read on to discover some of London’s most popular areas for investment.
Is Camberwell a good place to buy?
Camberwell is centrally located and falls within London’s Zone 2. The area is within close proximity to Vauxhall (1.5 miles) and Battersea (2.3 miles) yet offers exceptional value against both, as prices are 13.6% more expensive in Vauxhall and 42% more expensive in Battersea. Residential real estate in the area of Camberwell is typically compiled of Victorian terraced townhouses and maisonettes with a few newbuild apartment blocks.
Camberwell is also home to one of the largest hospitals in the UK, King’s College Hospital. The hospital and its wider Trust have around 15,000 staff. It plays a key role for the entire south-east England region and serves as a trauma centre for 4.5 million people. The hospital is one of the largest employment hubs in London and continues to see investment and growth further underpinning demand for housing nearby.
Alongside King’s College Hospital, the area is also home to one of the main campuses of the University of the Arts. The Camberwell College of Arts is highly esteemed and forms one of six of the university’s colleges. All in all around 1,600 students attend the college, studying a wide range of creative courses.
Camberwell Housing Market
Is Camberwell a good place to live?
Camberwell’s proximity to central London and its vibrant atmosphere makes it an appealing choice for young professionals. Many young professionals living in Camberwell work in industries such as finance, creative arts, technology, or healthcare and prefer to live in 1-bed apartments or flat shares. Artists, designers, and individuals involved in the creative industries choose to live in this location to immerse themselves in the area’s artistic vibe with several art studios, galleries, and creative spaces nearby.
Camberwell is also near universities and colleges, including Camberwell College of Arts and King’s College London, which makes it an attractive area for students. Living in Camberwell allows for easy access to educational institutions as well as the area’s lively atmosphere and artistic community. It has a strong sense of community, with local groups, initiatives, and events that bring residents together.
House Prices and Rents in Camberwell
The Camberwell housing market statistics according to Property Data:
- Average Asking Price: GBP496,739
- Average Rental Yield: 5.3%
- Average sold GBP/sqft: GBP666
Property in Camberwell
Case Study: Camberwell on the Green, London
As an example of what type of accommodation is typical of the above tenant profile in Camberwell, take a look at a development launched by IP Global in the vicinity.
Camberwell on the Green is a six-storey development with 92 private apartments. The development offers residents and investors a mix of unit options, some enjoying views of the famous Camberwell Green, or of the internal communal podium gardens.
- Project Launch Date: August 2015
- Project Completion Date: March 2017
- Number of Units: 21 (studio, one-, two- and three-bedroom apartments)
- Tenure: 999 years
- Average Price at Sale: GBP435,000 – GBP904,000
- Estimated Growth Since Launch: 10.7%
- Estimated Current psf: GBP790
Averages across 10 units under Complete Prime Residential’s management
- Current Average Rent: GBP1,913.29
- Achieved Rental v. Projected Rental: 96%
- Current Average Rental Yield: 4.08%
- Current Average Tenancy Term: 20 months
Is Woolwich a good place to buy?
Acting as a catalyst for the historic town’s revival was the announcement of Crossrail in 2008. Now in action and named The Elizabeth Line, the state-of-the-art line stretches from Reading in the west through central London and forks one-way out towards Essex and another down to the south-east. The line has facilitated travel from Woolwich to Canary Wharf in just 10 minutes, Farringdon in 25 minutes and Bond Street in 34 minutes.
The announcement of Crossrail’s arrival to Woolwich brought in more than GBP1 billion in regeneration for the town and the impressive new Royal Arsenal development by Berkley Homes. Huge improvements to accessibility, public realm and a better utilisation of Woolwich’s historic waterfront have meant that the average price in the area has rocketed to GBP473,742 from just GBP240,016 in 2008. Woolwich still represents a great pocket of value, considering its close proximity to Canary Wharf, which currently has an average property value 46.11% higher than Woolwich.
The typical accommodation found in the area is apartments, ranging from small, converted townhouses to large, modern developments. These apartments are typically two or three bedrooms, and they often have balconies or patios.
Woolwich Housing Market
Is Woolwich a good place to live?
The tenant profile in Woolwich is varied with young professionals, families, and students all sharing the benefits of affordable housing, convenient transport links to the city and the relaxed, yet lively riverside neighbourhood. The young professionals often work in sectors such as Finance, Technology, and Healthcare. The area offers a range of parks, community facilities and schools at primary and high school level. Tenants in the area tend to prefer one-, two- or three-bedroom apartments to rent.
The spacious green spaces and family-friendly atmosphere contribute to the appeal for those seeking a suburban environment within reach of the city. Woolwich’s artistic heritage and ongoing creative developments make it attractive to artists and creatives. With The Woolwich College and the University of Greenwich, Woolwich is also home to a significant number of students.
House Prices and Rents in Woolwich
The Woolwich housing market statistics according to Property Data:
- Average Asking Price: GBP427,474
- Average Rental Yield: 5.7%
- Average sold GBP/sqft: GBP478
Property in Woolwich
Case Study: Wellington Quarter, London
As an example of what type of accommodation is typical of the above tenant profile in Woolwich, take a look at a development launched by IP Global in the vicinity.
Wellington Quarter is a four-block town centre development, located within the commercial heart of Wellington Street and moments away from The Elizabeth Line station.
- Project Launch Date: April 2017
- Project Completion Date: September 2019
- Number of Units: 81 (one-, two- and three-bedroom apartments)
- Tenure: 250 years
- Average Price at Sale: GBP392,000 – GBP621,000
- Estimated Growth Since Launch: 9.5%
- Estimated Current psf: GBP724
Averages across 22 units under Complete Prime Residential’s management
- Current Average Rent: GBP1,481
- Achieved Rental v. Projected Rental: 112.93%
- Current Average Yield: 4.22%
- Current Average Tenancy Term: 23 months
Is Ilford a good place to buy?
The area of Ilford has seen an immense level of change over the past 5-10 years and is an ever-growing commuter location for those working in the city, owing to it’s excellent transport links and affordability. The majority of accommodation type found in Ilford is apartments. This is followed by houses, maisonettes, and townhouses. The neighbourhood is multicultural with a strong local community.
The area continues to see regeneration with The Ilford Town Centre Area Action Plan seeing GBP40 million invested into urban renewal, including upgrading facilities around the Elizabeth Line. The plan also identified 10 priority development sites across the town that delivered a total of 1,500 new homes and over 25,000 sqm of new commercial space.
The new Elizabeth line has significantly improved the quality and timings of journeys into central London. Ilford residents can now travel to Farringdon in just 23 minutes, Canary Wharf in 24 minutes and Bond Street in 37 minutes.
Ilford Housing Market
Is Ilford a good place to live?
The typical tenant profile in Ilford, London is a young professional or student. This is because Ilford is a popular area for people who are starting their careers or who are studying at one of the many universities in the area. They are typically between the ages of 20 and 35, single or in a couple, employed or studying full-time with a budget of £700-£1,200 per month for rent. Usually the ideal apartment criteria is for it to be central and furnished with good transport links.
House Prices and Rents in Ilford
The Ilford housing market statistics according to Property Data:
- Average Asking Price: GBP478,126
- Average Rental Yield: 4.1%
- Average sold GBP/sqft: GBP472
Property in Ilford
Case Study: Horizon, London
As an example of what type of accommodation is typical of the above tenant profile in Ilford, take a look at a development launched by IP Global in the vicinity.
Horizon is a new landmark for outer London comprised of 122 studio, one-, two- bedroom apartments. As part of an extensive regeneration program to revitalise central Ilford, the striking design of the tower provided a bold new statement for the area.
- Project Launch Date: September 2015
- Project Completion Date: August 2018
- Number of Units: 122 (studios, one- and two-bedroom apartments)
- Tenure: 250 years
- Average Price at Sale: GBP233,000 – GBP515,000
- Estimated Growth Since Launch: 33.4%
- Estimated Current psf: GBP680
Averages across 62 units under Complete Prime Residential’s management
- Average Rent: GBP1,463.17
- Achieved Rental v. Projected Rental: 117.60%
- Current Average Yield: 4.55%
- Current Average Tenancy Term: 20 months
London is a great place for landlords to invest in. The city has a strong economy, diverse culture, and unique lifestyle. It also has a wide range of property types to choose from, catering to different rental market segments. These factors all contribute to the high demand for rental properties in London. Some of the popular areas for investment in London include Camberwell, Woolwich, and Ilford. These areas are all well-connected to the city centre and offer a variety of amenities and attractions. These regions also offer a pocket of value while maintaining strong tenant demand, which makes them attractive for landlords. If you’re interested in our management & lettings services, contact us at reception@complete-ltd.com.
