The east London borough of Havering offers London’s highest rental yield at 8.3 per cent, says London estate agent Portico whose research used their Interactive Yield Map to drill down each London borough on a street level to find the highest potential yields in the capital.
Their data shows that London’s highest yield of 8.3per cent was found in Havering, in the Romford postcode area around Whybridge Junior School. Average monthly rental prices for a two bedroom flat in the area is just £1,156 – £600 less than London’s average monthly rental price of £1,756.
The outer London boroughs offered the highest yields, with areas in Barking and Dagenham, Bexley, Redbridge and Bromley achieving yields of six per cent. Chadwell Heath in Barking and Dagenham – where Crossrail services launch in 2019 – offer a 7.6per cent yield, with an average monthly rent of £1,278.
In inner London, Greenwich has the strongest rental returns and the most affordable monthly rent, with a six per cent yield around North Greenwich station, where the average monthly rental price is £1,477.
Yields range from around 2-4 per cent in prime central London, with the highest around the World’s End Estate in Kensington and Chelsea (3.8per cent), or the northern end of Finchley Road in the borough of Westminster (4.8 per cent).
Robert Nichols, Managing Director, Portico, said, “Transport links are key. London’s commuting tenants want to be within close proximity of a Tube, so look for properties near new developments such as Crossrail and Crossrail 2.
“Havering, Barking and Dagenham and Bexley – which will soon have stations on the Elizabeth line – are key investment hotspots where landlords are achieving extremely impressive yields.”