New research which has looked at rental returns in each London borough on a street level, reveals that Greenwich is the highest yielding inner city borough. (*Source: London estate agent Portico, August 2016).
Greenwich borough offers buy-to-let landlords the highest returns and the most affordable monthly rent. According to the research, landlords can expect a 6% yield around north Greenwich station, on Pelton Road, Bellot Street, Blackwall Lane, Armitage Road and Millennium Way and the average monthly rental price in the area is £1,477.
Room rents in Greenwich borough are cheaper than many other parts of the city. The average monthly rent in the borough in April-June 2016 was £805, up 12% year on year from £718*. Room rents in Abbey Wood (SE2) where Crossrail services start in 2018, have risen the most, with an increase of 21% year on year, up to £564 per calendar month (pcm). The borough also has some of the cheapest places to rent in inner London, including Charlton (£554 pcm) and Plumstead and Woolwich (£557 pcm). (*Source: Flatshare website, SpareRoom.co.uk, August 2016).
Mattias Sandvall, Head of Multi-Let London, commented: “Greenwich borough gives landlords excellent yields and is a great place to invest. It is very popular amongst families, commuters and young professionals. Many are attracted to the borough’s parks and outdoor attractions, including Greenwich Park, Blackheath Common, the large open paved area where the Cutty Sark is dry-docked by the river, the Observatory and the National Maritime Museum.
“It also has a thriving student population with Greenwich University and rooms in Houses of Multiple Occupation (HMOs) are very popular amongst students and professionals. Many tenants choose shared accommodation for both financial and social reasons.
“A more demanding, but rewarding way for landlords to achieve higher yields than traditional single let is multi-let the property. In fact, landlords can increase their rental yields by switching from single let accommodation to HMOs. For example, a three-bedroomed, single let property in the Greenwich borough may typically achieve a gross rent of £1,800 pcm for a family.
If it is converted into an HMO, the gross rent on the same property could exceed £4,000 pcm. This represents a significant profit opportunity for buy-to-let investors who have the required expertise to generate sustainable returns in this increasingly competitive market.
properties can be successfully converted to HMOs with the introduction of C4 building regulations. If a high quality refurbishment is undertaken, the property can attract working professionals in the right location, who are prepared to pay more for a shared property, with a superior finish. Luxury ensuites, large TVs, premium kitchen appliances and furnishings are the type of features that help to generate a high yielding HMO, where the market conditions accommodate.
“We have just opened an office in London to offer a full HMO portfolio management service for landlords in Greenwich, Lewisham and Croydon. Multi-Let UK is the only national specialist multi-let portfolio management company that specialises in professional house shares and has built a reputation as the market leader in houses of multiple occupancy investment.”
Since Multi-Let UK’s launch in 2013, the firm has enjoyed early success and now manages on behalf of landlords and investors, a growing portfolio heading towards 1,000 units of high quality HMOs and house share accommodation, for graduates and working professionals. Already, the firm has provided safe and secure homes for thousands of professional tenants across the UK.
Multi-Let UK is an award-winning company that offers landlords a strong level of occupancy, increased revenue and reduced costs. The firm’s services range from rent collection, inventories and monthly inspections to handling evictions, HMO compliance, maintenance calls and refurbishments, backed by a team of highly trained specialists, with an office operation that is working 24/7.
For more information, please call Multi-Let UK on 0330 660 0589, or visit the new website at www.Multi-let.co.uk for free resources and downloads.©LandlordZONE® – legal content applies primarily to England and is not a definitive statement of the law; always seek professional advice. Legislation changes, so check dates on these articles. If you have questions go to the LandlordZONE® Forums