The sprawling and serpentine city of London is an investment dream – even still for property. One of London’s biggest appeals to investors is its size: despite decades of innovation and investment, there are still pockets of opportunity all over the city that are just waiting to be discovered.
Here is why investment properties in London are so popular and where you can find some of the best buy-to-let properties in London.
Why Invest in Buy-to-Let Properties in London
London is the property investment dream that keeps on giving. The UK capital has plenty to offer to tourists and residents alike. The population of London is soon to hit 9 million. Thousands of people move to this exciting city each year and it has one of the highest retention rates in the country.
There are plenty of reasons why so many people move each year. Many are attracted by the wealth of opportunities the city has to offer, namely for work. As the capital, London has established itself as the epicentre of finance and innovation and is home to thousands of start-ups and corporate giants. The city is also known for its educational excellence. It is home to several well-established and world-renowned schools and universities, including five Russell Group-accredited universities. Along with a vibrant culture, it is clear that London will always continue to have a strong influx of people.
When it comes to the property market, there is a strong capital appreciation. House prices have seen exponential growth in recent years. The city is projected to see further house price growth of 21% by 2026 (JLL).
The Best Buy-to-Let Areas in London
Battersea
Battersea is a large neighbourhood in southwest London and is enviably located – it is only 3.5 miles from Charing Cross. The area is constantly undergoing major transformation, particularly around Battersea Power Station. It has several green spaces (mostly notably, Battersea Park), museums, shops, points of interest, and more. The face of Battersea is constantly changing, with newly built flats appearing in the area almost overnight, leaving investors with lots of opportunities for off-plan buy-to-let residences.
Barking and Dagenham
The Barking and Dagenham area is one of the cheapest places in London to rent. Situated east of the city centre, it boasts comparatively lower property and rental prices and offers investors some of the highest rental yields (in some cases reaching as high as 6.2%). As such, it remains popular with investors just starting their investment careers due to the wealth of new build opportunities taking place across the area.
While it might not seem as central as other districts on this list, Barking and Dagenham is only 9 miles from central London. It offers fast connections to the city centre, with direct tube, overground, and bus lines, making it popular with commuters and families.
Camden Town
Camden Town – usually just referred to as “Camden” – is part of the London Borough of Camden and is situated just slightly north of Charing Cross. The area is still firmly within the City of London and is classed as one of the major centres in Greater London.
The area is steeped in modern history. It was once at the forefront of alternative music in culture, particularly in the 70s and 80s. Nowadays, it is associated with this rich cultural history and its famous market which attracts hundreds of tourists per day. It is still home to a thriving nightlife as well, with plenty of live music, pubs, alternative clubs, and more having something on every night – including the famous Jazz Cafe and the Roundhouse.
Currently, there are new developments taking place across the area which has been somewhat neglected over the years. Now, the revival of Camden is in full swing with plenty of buy-to-let opportunities all across the neighbourhood.
Canary Wharf
While it might seem like there isn’t much investment potential left in Canary Wharf, that’s where you’d be wrong. Canary Wharf is the epicentre of the country’s financial industry. It has a rapidly expanding and changing landscape, with new additions to its skyline year on year.
The neighbourhood attracts a large proportion of high-earning, high-value renters who want living options that are close to their place of work – especially in the world of finance with its famously long hours and “work hard, play hard” mantra.
At North Property Group, we have a series of curated apartments nestled right in the hustle and bustle of Canary Wharf. Click here to find out more about our Park & Sayer residences.
Greenwich
Greenwich is a London borough situated centrally in Greater London and is situated on the River Thames, directly opposite Canary Wharf. The area is well-known for its maritime history and is home to the Maritime Museum. It also has the O2 Arena – a popular music venue with a wide variety of acts. It boasts plenty of green spaces and attracts plenty of families each year to settle. Its liveability for families and good transport connection have resulted in a high rental demand and has one of the highest rental yields in the city.
Harrow
The London Borough of Harrow is a sleepy borough nestled in the northwest of Greater London. With excellent schools and plenty of green spaces, while maintaining strong transport connections to London’s centre, it has become a hit destination for high earners and their families. It takes approximately 30 minutes to get to the centre of London from the borough’s town centre.
It is home to Harrow School, one of the most globally renowned and esteemed boarding schools for boys aged 11 to 18. The school has an incredible alumni list, boasting multiple Nobel laureates, scientists, artists, and politicians – the latter of which included the UK’s Prime Minister Winston Churchill. The school is also well known for producing many world-class athletes, particularly in rugby.
For more on Harrow and its opportunities, check out our landing page for Harrow and our exclusive residences, Greenhill Lofts, here.
Kensington
Associated with class and sophistication, Kensington is one of the more upscale areas in London and a surprising addition to this list. However, it is home to several high-earning renters and a strong demand for premium rentals. It is densely populated with Victorian architecture, embassies, and points of interest – attracting renters and tourists alike. It is notably the home of The Royal Albert Hall – a famous concert venue in the UK, which hosts opera and concert shows each week.
While the area of Kensington is well-established, there are some opportunities for investors who set their sights high. Head to our page on our premium residence in Kensington to find out more.
Summary
The London buy-to-let property market can be daunting at first glance. Here at North Property Group, we’re here to help you get the most out of your property investments. We are a highly-esteemed property investment agency that has recently opened a sister branch in Shoreditch, London. We offer an end-to-end investment and lettings service and are deeply committed to our clients.
We manage the less exciting side of investment for you. From tenancies to payments to documents, we offer investors peace of mind and a hands-off approach. Still need convincing? We currently have over 1,500 5-star reviews on Trustpilot – and growing. Book a free consultation with us today to start your London property investment journey and tap into the UK’s best off-plan opportunities.