London Property Hotspots for Landlords
15 June 2015 4303 Views
While property in the capital city has been attractive to investors for decades, new figures suggest that investors are flocking here in larger numbers. Statistics claim that property prices in London are set to increase by an average of 18% during the next five years, with a rise in monthly rentals of 19.5%. This is largely due to an influx of overseas property buyers combined with the UK's current housing shortage.
With this forecasted increase, now is the time to increase your portfolio and invest in property. Here are London's property hotspots that are promising big returns.
Previously associated with the 2011 London riots, Croydon has come a long way with huge redevelopment and investment. This area is fast becoming a trend place to live but property prices here are still relatively low – there are a wide range of flats and houses for sale for less than £300,000. Between 2013 and 2014, the average property price in Croydon rose by more than 20%, so now is the perfect time to capitalise.
This borough borders popular Greenwich and has fantastic transport links to central London. These two factors have largely attributed to Bexley's up and coming reputation. Similarly to Croydon, house prices here rose almost 20% between 2013 and 2014. Property is Bexley is still affordable, but purchase quickly as prices are set to outstrip the average 18% over the next five years.
A popular and fashionable area, Camden is known for having a vibrant atmosphere. This area has been a must for investors for a number of years, but with regeneration plans announced in 2014, including the development of 2,000 new homes, rental prices here are set to increase by 32% by 2020. While resale value here are set to rise more steadily than the likes of Croydon or Bexley, the rental increased promise fantastic long-term potential.
The arrival of the East London Line has seen an increase in first time buyers and young families, who are in search of more property for their money. Over the past two years, this borough has seen a rise in property prices of approximately 15%, a figure that is set to increase over the next five years as Lewisham grows in popularity.
This leafy south London suburb is situated on the outskirts of the capital and has seen a rise in popularity as young families seek a more peaceful environment. Again, rents here are predicted to rise by almost 33%, making property in Sutton a goldmine for investors. Incredibly, figures from March 2015 show that property demand in Sutton outstrips that of Cambridge and Bristol, a trend that is set to keep prices climbing.