Rising property values and impressive rental yields mean that Hackney offers landlords in London the greatest return on investment, according to recent research from London letting specialists, Edmund Cude.
The company report that average residential property prices in Hackney have appreciated by 7.4% and rental yields have jumped to 6% since July 2011, evidence that the borough is benefitting from high tenant demand and close proximity to central London.
According to the company’s report, while central London hot spot Kensington and Chelsea has seen average property values increase by almost 20% since July 2011, prime central London has experienced poor rental yields of just 3.9% over the same period.
Robert Nichols, managing director, Edmund Cude, said: “Steep house prices in central London are forcing many prospective buyers and tenants to look at secondary neighbourhoods and, as a consequence, these boroughs are experiencing positive capital growth and strong yields year-on-year.
“This ripple effect offers landlords an opportunity to take advantage of the most buoyant lettings market in the UK and to see their property appreciate in value at the same time. There can be no doubt that prime central London continues to drive growth across the capital, but Hackney, Lambeth and Waltham Forest are the jewels in London’s lettings crown offering landlords the best of both worlds.”
TOP FOR RENTAL YIELD
Borough Annual Yield
1. Barking & Dagenham 8%
2. Newham 7.7%
3. Redbridge 7.6%
4. Havering 7.0%
5. Brent 6.8%
TOP FOR CAPITAL GROWTH
Borough Annual growth
1. Westminster 18.1%
2. Kensington & Chelsea 15.6%
3. Hammersmith & Fulham 10.5%
4. Islington 8.4%
5. City 8.4%
THE BEST OF BOTH WORLDS
Borough Total Annual Return
1. Hackney 13.4%
2. Lambeth 12.7%
3. Waltham Forest 12.3%
4. Hounslow 11.9%
5. Lewisham 10.1%
Source: Edmund Cude
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