When investing in UK property, opting for London as your investment location can be tricky. Success rates vary when it comes to London property investment, and investors are required to really do their research and think about certain details to ensure a worthwhile venture. Figures show that looking up North may be a better option for buy to let investors in the UK, with property investment hotspots like Manchester and Liverpool offering the most impressive and promising rental yields and prices of 2018. For those keen to buy into the London property market, however, make sure you take a look at these following tips.
Research the best neighbourhoods
Some parts of London are significantly less promising in terms of investment than others. As a whole, London has much lower yields than other UK cities, with an average of 3.7%, whilst cities like Liverpool and Manchester have higher averages of around 5%. Some parts of London, however, offer more attractive yields and more potential for growth. In East London, Newham is a borough of the city that’s experiencing regeneration that’s boosted the rental yields to an average of 4.7%, just above the capitals overall percentage. If these rental yields aren’t what you’re looking for, you might find those of Liverpool more attractive, with certain postcodes of the city such as L7 boasting fantastic yields of 11.79%.
Think about the best time to invest
If you’re set on investing in London property, you might want to think about whether or not 2018 is the best time to do so. There are predictions that the London property market is set to improve by 2020, with neighbourhoods like Croydon and Canary Wharf set to experience some major regeneration projects that will boost interest and strengthen property investment prospects. Investors that are keen to find professional tenants that are more interested in high-end, luxury apartments should look to areas like Earls Court, which are predicted to appeal to the growing crowd of freelancers in the city.
Think about the property type
Deciding who you want to rent your buy to let property out to is a crucial factor that can make or break your investment. One factor that every property investor needs to consider is the level of demand in the area they’re looking to invest. In cities like Liverpool, for example, there’s a high demand for student accommodation due to a rising population of students in the city, whilst the rising numbers of young professionals in Manchester means higher demand for city centre residential property. In London, however, this type of demand has diminished significantly, with the less affluent boroughs of the city such as Newham and Bexley seeing higher demand for property. Areas like Bexley are known to offer some of the lowest rental costs in London along with cheaper house prices, although this isn’t ideal for investors looking for good rental yields.
For those set on London for their next venture, figures show that waiting until further in the future is a good idea if you want to make enough return on your buy to let investment. For those looking for a solid investment opportunity in 2018, it’s worth considering property investments in Manchester and Liverpool with RW Invest, offering fantastic yields as high as 9%.