Portico, a top London agency, has launched an Interactive Rental Yield Map, which they say, is “a really cool tool to give landlords an idea of potential income at the click of a button!”
The map uncovers the top 10 postcodes for buy-to-let, and the yields are updated daily, helping landlords to have the latest advice on where their investment will be best placed. The highest yielding locations are interesting for those who know London – especially as Beckton (behind the sewage works) is one of the highest yields, and, surprisingly, one of the lowest yields can be found behind Buckingham Palace.
Though the majority of London yields a relatively low yield of around 3-4 per cent, there are still some pockets offering very healthy rental yields:
- Barking 6.4%
- Erith 6.4%
- Ilford 6.1%
- Dagenham 5.9%
- Edmonton 5.8%
- Canning Town 5.7%
- Beckton 5.7%
- Romford 5.6%
- Ponders End 5.6%
- Freezywater 5.6%
The mapping discovers that Barking, in Zone 4, offers the highest potential rental yield at 6.4 per cent. An average two-bedroom house costs around £270,000. Portico says, “Barking has been enjoying the spotlight since it was named host borough for the London 2012 Olympics. Since then, renovation projects have been transforming the east London town, most notably the Barking Riverside regeneration project which is creating a new neighbourhood with 10,800 homes on the former power station site.”
The lowest potential yield is reported to be in the cozily named Freezywater in Zone 6, where the highest potential rental yield is listed as 5.6 per cent. With the average two-bedroom house price at £329,995, says Portico, Freezywater is another area in Enfield that offers a very healthy yield. There’s a high proportion of renters living in the area and a one-bedroom property goes for around £900 per month.
The area lacks great transport connections, but residents are just a 15-minute walk from Enfield Lock station with direct trains into central London. There’s also a mix of houses and flats, making it an attractive area for professional couples and people looking to start a family.”