Croydon is ranked in the top 10 for best BTL yields in London.
New research shows that Croydon is ranked in the top 10 places for buy-to-let in London, where landlords are enjoying average yields of 5% per annum.
London-based estate agents Portico compiled a list of places that it believes are emerging buy-to-let hot spots in the city and unsurprisingly, many of the areas identified are located in the outer London boroughs where rental returns are typically higher.
Below is Portico’s top 10 places to buy-to-let in London with potential yields:
1. Ilford – Current highest yield according to Portico: 5.5%
2. Hounslow – Yield: 5.3%
3. Greenford – Yield: 5.3%
4. Croydon – Yield: 5%
5. Wood Green – Yield: 5%
6. Whitechapel – Yield: 4.8% around Fenchurch Street station
7. Forest Gate – Yield: 4.8%
8. West Drayton – Yield: 4.8%
9. King’s Cross – Yield: 4.4%
10. Acton – Yield: 4.1%
Fredrik Sandvall, Head of Multi-Let London, commented: “Croydon is a buy-to-let hotspot because of its affordable property prices, compared with many other parts of London and its excellent transport links into the City. Croydon is undergoing a massive £5.25bn regeneration programme across East Croydon, West Croydon, Mid Croydon, Fairfield, and Old Town.
“At the heart of these transformative plans will be a £1.5bn retail and leisure complex by Westfield/Hammerson, eight new hotels, more than 2m sq ft office space and 8,000 new homes. The first Boxpark outside Shoreditch, Boxpark Croydon is due to open in October, outside East Croydon station and will offer more than 40 food and drink outlets, alongside shared open spaces and regular events. With blue-chip employers, a thriving town centre and growing demand for rental accommodation, Croydon is already a great place to invest.
“Croydon offers investors some of the best yields in London. A few specific Croydon areas even beat the number one on Portico’s London top yield list, with average yields in Purley 5.6%, Coulsdon 5.5% and West Wickham 5.4%. However, if landlords want to boost their yields, they don’t need to look outside Croydon.
“A high quality HMO in the town will give an annual yield of between 8% and 15%. A three-bedroomed, single let property in Croydon may typically achieve a gross rent of £1,500 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.
“Many standard 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 Croydon to offer a full HMO portfolio management service for landlords in Croydon, Greenwich, and Lewisham. 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.
- Multi-Let UK is part of the Pulse Trading Group, a multiple award winning multi-million pound consortium of ten privately owned businesses both in the UK and overseas
- In 2015, Daniel Hill was highly commended at the Institute of Directors (IoD) East Midlands Director of the Year Awards. It came after Daniel was named Midlands Young Entrepreneur of the Year at the 2013 Midlands Business Awards.