The latest research from Benham & Reeves Estate Agents shows some areas of the London rental market are experiencing rental yield increases of between 2% and 4%.
Marylebone, Paddington, Whitechapel, London Dock, Wapping and Brentford seem to be benefiting from being along the Crossrail route (Elizabeth Line). Property portal Rightmove reported an average 3.3% rise in for-sale prices along the route which includes some areas that used to be considered too far out but now offer a short commute into the centre of London.
For Tube zone 1 Marylebone and Paddington, already served by good transport links, the effects will be minimal but the renewal and development of even more residential property developments will have definitely piqued tenants’ interest.
For Whitechapel, its proximity to the City has always given it high rental potential but Crossrail is changing all this. Corporate professionals working in the financial districts who rent property close to work during the week but commute to homes in more rural areas at weekends are will find the route serves their needs well, bringing rural destinations within a quicker and easier reach.
White City and Shepherd’s Bush have always been viewed as full of concrete and a little unloved. Even with BBC Television Centre based there and the many media jobs that it brought with it, the area has stubbornly resisted being ‘smartened up’. That is until the BBC moved most of its operations to Salford Quays leaving Television Centre ripe for redevelopment. The result is a welcome urban regeneration of apartments, offices (such as Virgin, ITV and the Royal College of Art) and retail units (including a branch of Soho House). Westfield the mall giant that made its London home in White City, provides aspirational retail and places to eat from under one roof. The gentrification has brought with it professionals looking for good rental opportunities; and the increasing rental yields are a mark of this area being one to watch.
Haringey, Wood Green, Hornsey, Tower Hamlets and Newham are gaining in popularity. Investment in N8 and E16 is starting to bear fruit with stunning new developments following the Lea River and out to the Olympic Park at Stratford. This area has already seen rental yield rises of 2%-4% and seems to be a favourite for buy-to-let investment.
Richmond upon Thames, Southbank, Bermondsey, Waterloo and Deptford are the south of the river stars this quarter. All highly attractive to tenants thanks to their great local character – Southbank and Bermondsey have links to Borough Market for foodies and tourist attractions along the river, while Richmond upon Thames and Deptford has a vibrant cultural heritage. Investment along the river is always strong as tenants seek out riverside apartments. In the wake of the Nine Elms development around Battersea Power Station however, more developers are seeking out opportunities on the south side of the river in places with both historical and commercial appeal.
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