April 16, 2019
Is East London set to be the capital’s next rental hotspot?
Despite Brexit uncertainty – such as the reduction of mortgage interest tax relief and the stamp duty surcharge – landlords can still benefit from many investment opportunities across London.
A recent study by Zoopla revealed the most popular locations for renters in the capital and what makes them lucrative hotspots for landlords.
Here at Atkinson McLeod, we take a closer look at the recent rental trends in the capital. Also, we investigate what this could mean for landlords operating across the capital.
East London reigns supreme for renters
The property website analysed the most sought-after areas for a rental home in London over the last 12 months. Canary Wharf and Isle of Dogs (E14 postcode area) topped the table.
Zoopla also separated the most popular rental searches by property type and number of bedrooms. Once again, the E14 postcode appeared at the top of the list for tenants looking for a one or two-bedroom apartment in London.
Last year, Simply Business revealed East London as one of the best buy-to-let areas in London. It boasted some of the highest yields in the UK at 6%.
From iconic riverside living (Canary Wharf, Shadwell, Wapping) to dynamic urban neighbourhoods (Dalston, Hackney, Stratford), East London has plenty to offer for all tenant types. And, with the rental market seeing a shortage of supply and increasing demand, landlords with properties here can command high and growing rents.
Why is Canary Wharf becoming so popular?
It is better known as the headquarters of London’s global financial centre made of glass and steel. However, Canary Wharf has quickly become one of the capital’s most desired neighbourhoods.
Locals in the area can enjoy a world class selection of restaurants, shops and bars. Also it has excellent transport links into the city and West End.
Canary Wharf also boasts a range of spectacular penthouses and riverside developments with stunning views across the capital. For landlords looking to invest in new properties, current asking rents stand at an average of £2,300 per month.
New residential developments on the Isle of Dogs have also opened the area up to a new range of young families and professionals.
Furthermore, with plans for a rail line connecting High Speed 2 to Canary Wharf, the area is set to become even more desirable.
South London area preferred for families
Meanwhile, eight of the 10 most popular areas for searches on three and four-bedroom houses were located in South West and North West London.
Tooting, an area which is covered by our Balham office, secured a spot in the top 10, proving popular among Londoners who desire larger family homes with reasonable asking rents. In fact, average asking rents here sit at £1,900 per month.
The area is quieter than neighbouring Balham and Streatham, offering a wide expanse of green space. Tooting Bec Common and its popular lido for instance.
Tooting also boasts great transport links, with Tooting Bec and Tooting Broadway both on the Northern Line. They are also linking the area to Waterloo or London Bridge in 20 minutes. Its also well served with buses into Victoria and Waterloo.
For landlords and investors, it’s important to have a good understanding of the local market. And it could be worth investing in Canary Wharf and seizing opportunities while they are still available.
Here at Atkinson McLeod, we can help landlords to make the most from their rental properties. For more information about letting a property in East London, please get in touch with us or contact our Canary Wharf office.
Additionally, you can request a free and instant online valuation to find out how much you could be charging in rent each month.