Up and Coming areas to rent in London

Discussion in 'General Property Investment Discussion' started by Laura Langhorn, Sep 11, 2018.

  1. Laura Langhorn

    Laura Langhorn New Member

    Hey All,

    It would be great to get some ideas of areas in London which are popular with the young professional? I'm looking to expand our portfolio of properties to rent. We are already renting in Clapham, Battersea and Putney, naturally great areas for transport links and conveniences but would be good to get some thoughts of other areas. Does anyone have any feedback on Dulwich and Peckham as an area?

    Laura
     
  2. Longterminvestor

    Longterminvestor Active Member

  3. Longterminvestor

    Longterminvestor Active Member

  4. Laura Langhorn

    Laura Langhorn New Member

    Perfect thank you!! I'll take a look.
     
  5. nmb

    nmb Well-Known Member

    Hi @Laura Langhorn

    I would be interested to hear whether you have seen an increase in rent yields since "Brexit".
     
  6. nmb

    nmb Well-Known Member

    Sorry - also, what do you expect to happen in the future.
     
  7. Laura Langhorn

    Laura Langhorn New Member

    Hi there @nmb
    Albeit the market has had some positive fluctuations in price over the Summer months as one would expect, rental yields have remained the same at around 3% or thereabouts. Certainly South West London as an area has reached a high on rental incomes and we have seen in recent times the prices drop some what from where they were. I think there is no doubt that the uncertainty of the economical situation is playing a part in this as well as landlord taxes. Whilst Brexit unfolds it looks like we may be in this rather 'static' market place for a while. Having said this there is still some really good quality stock to invest in with motivated sellers looking at taking more price sensitive offers due to necessity.
    I think London always remains it's own micro climate to some degree....
     
  8. diyhelp

    diyhelp Active Member

    Hi @Laura Langhorn

    I totally agree with your comments about London. I have argued for many years that comparing the London property market to the rest of the UK is like comparing apples and pears. London has its own culture, its own economy and in some cases even its own microclimate. Personally, even in the event of a Brexit deal I think there will be a period of uncertainty which may well see rent yields tick a little higher?
     
  9. Laura Langhorn

    Laura Langhorn New Member

     
  10. Laura Langhorn

    Laura Langhorn New Member

    @diyhelp I've worked in the industry for some time and have seen the market go through cyclic peaks and troughs over the past years. Sellers/landlords and buyers just need to be a bit more realistic about where the market is. Decent properties in good locations in London will always get a relatively healthy price in turn there is plenty of second hand and luxury stock out there to get a good deal and in turn a decent return. I do think this will pick up as more stock come on to the market.. lots of new build happening!!
    On a slightly separate note, which area do you cover work wise?
     
  11. diyhelp

    diyhelp Active Member

    Hi @Laura Langhorn

    I am from the North of England but I live in Scotland so very very different markets to London. Like you, I belive there are always deals out there and decent long term rental income is the Holy Grail of property investment. It should allow you to cover your costs and a little extra for unexpected costs while increasing your equity year on year. Personally I see capital gain as a bonus and rental income as King.
     
  12. Adam Chapman

    Adam Chapman New Member

    Would you consider outside of London? Lots to be had in other major cities like Manchester, Newcastle, and Birmingham!
     
  13. FWL

    FWL Member

    Hi @Adam Chapman

    It is interesting that you mentioned the likes of Manchester, etc as there is evidence to suggest some London home owners are cashing in their "London premiums" to buy similar sized houses outside of the capital at a fraction of the price.
     
  14. Adam Chapman

    Adam Chapman New Member

    Hi @FWL

    Yeah - there's a piece on the Guardian (not sure I can link to it), looking at the fact that a record proportion of london home owners are selling and moving north

    A couple of months old but evidence that there might be more gains in some of the northern cities where development is booming
     
  15. Longterminvestor

    Longterminvestor Active Member

    I saw that, said the rate was the highest for many years although it was still just a fraction of London's 8 million population. High rental yields, compared to London at least, seem to be swaying the arguement in favour of cities such as Manchester. However, those who write-off London do so at their own risk - many have gone down this path before only to end up with egg on their faces.
     
  16. FWL

    FWL Member

  17. Laura Langhorn

    Laura Langhorn New Member

    Ah I see. We are very much a London based Company and currently expanding however there will be future plans to look further afield as we grow. I can see the value in investing in other cities. Hopefully we will be looking in a few years!
     
  18. Laura Langhorn

    Laura Langhorn New Member

    Interesting point. It's looking at the long term growth in these areas too right?
     
  19. lookinginvest

    lookinginvest Member

    These charts show rental price movements since 2007 (scroll to bottom of chart for year tags). Very interesting:-

    [​IMG]
     
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