Why East London Is The Top Hotspot For Buy-to-Let Investors
The Pet Shop Boys may think it’s better to Go West, but if you’re a property investor planning to buy-to-let in London, go East.
London is notoriously one of the most expensive capitals in the world. However, the rental yields are extremely good. So how can you take advantage of a healthy rental income if soaring property prices prevent you from making an investment in the first place?
Regeneration is the buzzword in London, and most of it is happening in the Eastern boroughs. Canary Wharf, Shoreditch and post-Olympic Stratford have paved the way for new housing opportunities and a better quality of life that’s still within easy reach of Central London.
And the good news is, there are certain areas in the East End that are still affordable, while rental yields are ever increasing, making them a great opportunity for potential landlords.
Here’s why East London is the top hotspot for buy-to-let investors:
The success story of East Village London (with its new E20 postcode), which before the 2012 Olympic games project was a derelict brownfield site, and is now a thriving, sought-after area, has set the standard for regeneration projects of other run down areas.
Areas that are experiencing the ‘Olympic effect’ include Barking, Ilford and Hackney Wick, where industrial sites, abandoned factories, old warehouses and derelict Victorian buildings are being transformed into homes, luxury flats, chic restaurants and entertainment venues.
Shoreditch also stands out as a regeneration success. The once run down borough was considered an undesirable place to live up until the 1990s. It is now a vibrant, dynamic and fun place to live, with an influx of creative and artistic businesses, renters and homeowners. More regeneration is planned, which will turn this thriving area into one of the most sought after postcodes in London.
Officially named the Elizabeth line, the crossrail link set for completion in 2019 has already been nicknamed the ‘Lizzie Line’. The much anticipated construction is set to transform rail links across London, seamlessly connecting the East with the West and beyond to Heathrow Airport.
The Crossrail links will make commuting far easier and quicker, so more renters will be happy to move further East.
Once the Crossrail transport link is complete, it’s expected to have a direct impact on property prices in East London. Now is the time that wise investors can still afford to buy in the regeneration areas, and can expect to see a positive ROI in the years to come as demand for rental properties rise in these up and coming areas.
Areas like Shoreditch, Canary Wharf and Docklands already attract professionals who want a dynamic lifestyle near to work. The lifestyle offered also means that many renters want a longer term lease in a comfortable and pleasant property that they can call home.
Pisoria offers a range of property management services for landlords in London. For more information and advice on renting out a property in London, contact us today.