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London’s buy-to-let property investments

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As an award-winning investment consultancy, BuyAssociation is dedicated to providing our community of investors with property-based products sourced directly from leading developers in the UK.

We connect investors and developers at the primary stages of development projects, securing exclusive discounts through our group buying power. Our careful approach to acquiring investment opportunities grants our clients access to high-quality, lucrative developments before anyone else. We work closely with developers both regionally and internationally, and some of the locations we focus on include Manchester, Leeds, Stockport, Salford, Liverpool, Birmingham and Nottingham.

By turning to BuyAssociation, you can expect to benefit from a smooth, streamlined and straightforward investment process. To talk to us about acquiring strong investments, get in touch today.

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Why invest in the London property market?

Property has been long considered one of the most gainful asset classes in the UK for investors. For investors looking to grow capital and benefit from long-term income in a flourishing market, understanding how and where to invest is paramount. London, as the capital city of the UK, has and always will maintain a strong demand for property investment, career prospects and education – particularly from professionals overseas. Moreover, London stays ahead of any other UK city when it comes to house prices, making this central city an attractive spot for investors seeking capital appreciation.

In the wake of the 2020 pandemic, the economy has become uncertain and you may be wondering if this is the right time to invest in UK properties. Along with the changes in market trends, the property sector has experienced a shift in demand and favourable locations. However, London’s property market has proven itself to be robust due to its unmatched career prospects and growing development, and extensive regeneration. With that, the impressive profits produced through rentals and the upwards trajectory in house prices ensure London sustains its pivotal role in the UK property investment sector.

 

A new property development in Hammersmith, West London

London property market: What you need to know

  • Property value growth: The average house price in London currently sits at £629,400. Property price predictions suggest that the capital city’s market activity will be highly varied across different boroughs. In central London, high-end properties remain the most expensive. Central apartments and houses are expected to rise in price by at least 8% over the course of the year 2022. Outer London house prices are expected to inflate year on year by around 3.8% – a sustained level of growth will offer landlords and homebuyers stability in the next few years.
  • Rise in rental costs: Monthly rent costs have steadily increased over the course of the 2020 pandemic and proceeding years. However, forecasts project a further 5.5% increase in rental prices for 2022 and beyond. Among the areas with the largest increases in rent costs are Kingston, Bexley, Newham, Croydon and Hillingdon.
  • Increasing annual yields: In the top-performing boroughs of London, landlords can reap the benefits of climbing yields in the next couple of years. The average yield is 3.62%, sitting comfortably within the 3-5% average range across the nation. However, strategic planning and involvement in HMO investments could reward investors with a 5-6% yield in prime London postcodes.

Property investments in London

A view of the London skyline showing property developments in Kensington

London investment properties introduced by BuyAssociation

Our ongoing research into thriving locations, exciting upcoming developments and market forecasts empower our team to identify lucrative residential properties for our clients. We take time to closely examine population growth, rental demand, and regeneration projects. These key metrics inform our decision-making process, allowing us to seek out optimistic opportunities that provide a high return on investment.

Buy-to-let investors looking to curate a strong portfolio could benefit financially by focusing on the capital city. London is a location that should not be overlooked, regardless of fluctuations in the housing market. As the heart of the UK itself, London offers a magnitude of unique possibilities in the property sector and beyond. In order to maximise returns in a rapidly evolving market such as London, investors must obtain guidance from experienced consultants. At BuyAssociation, we specialise in introducing investors to UK property and providing advice, with a strong focus on off-market residential transactions.

As an example of the property types we source for our investors, have a look at our Hereford Road case study.

A row of luxury residential properties in London

The growing build-to-rent sector in London

The build-to-rent housing model has taken the UK property market by storm. In a housing sector predominantly occupied by renters, homes designed for the sole purpose of renting are increasing in demand. Both public and private sectors welcome the emergence of the build-to-rent model amid concern over the undersupply of homes. The fantastic qualities and contemporary amenities that are integral to the build-to-rent model continue to attract thousands of young professionals across the country. With that being said, London – the UK’s business centre – remains a desirable destination for these properties to be built. By 2025, the soaring house prices are expected to have driven the majority of London’s population towards rental properties. This provides significant scope for investors to capitalise on build-to-rent units, which a considerable amount of renters will draw their attention to.

BuyAssociation takes a proactive approach to explore opportunities within the build-to-rent sector, as we consider this asset class to provide our clients with strong returns and steady income. If you’d like to profit from an emerging and lucrative market, talk to us today about your investment goals. We can connect you with developers constructing high-end, innovative and urban apartments that will add value to your portfolio.

Where are the best buy-to-let areas in London?

 

As the prime location for property investment, each and every area of London offers something unique for home buyers, tenants and landlords alike. We base our list of the best locations around the city on demand, price growth, future development plans and capital growth potential.

An aerial view showing townhouse properties in East London

East London

London property investors should know that East London has some of the best deals in all of the capital. Currently, the average house price in East London is around £386,000. However, some areas see prices start from as low as £130,000 – this is exceptionally low compared to house prices in central London that surpass £600,000. East London’s cheapest investment properties are based in Barking and Dagenham, whereas the highest costs of property can be found in Tower Hamlets. In all of London, Barking is the most affordable area to invest in property.

The range of rental market options across the east of London is exceptionally diverse, reinforcing why investors continue to be lured in by locations in this area. Not only is this section of London a popular destination for university students to live, but the public transport links also enable many commuters to travel in and out of the city centre every day.

A luxurious home in South London prime property

South London

There is a lower average property price in South London than in North London. Currently, South London’s property prices average about £480,000. Though South London has its share of expensive properties, there are also bargains to be found. Richmond is the most expensive borough in South London, while Croydon is the least expensive.

Many of the residents that choose to live in South London favour peaceful spots such as Merton, which is scattered with greenery and historical buildings. Landlords can expect to charge up to £448 a week in rental costs, as this is currently the average monthly cost for renting a home in this quiet borough. The SW19 postcode of Wimbledon is one of London’s most prevalent districts for tenants. Not only does it provide excellent access to the city centre, it is also home to the world-famous tennis tournament, which makes it a global tourist attraction all year round, driving up prices and rental demand.

A view of beautiful houses in North London

North London

The north of London is widely regarded as one of the most desirable residential areas in the city. The area has unrivaled transport links, many amenities, a lot of green space, and a wide variety of property types, including both contemporary new properties and period homes. Landlords who are investing in buy-to-let investment properties in North London can benefit from the high rental demand created by locals, commuters, people moving in from the UK and abroad, and students. North London is a favourite among celebrities too. If you’d like to benefit from a sustainable yield of around 5.8%, this is the area where you should be conducting your search for property.

Many people who work in Central London or the City of London prefer to live in North London. Most commonly, commuters seek out properties near tube or railway stations, making travel from each zone easy and hassle-free. For those looking for buy-to-let property to rent to families, North London encompasses multiple green spaces, a selection of schools and an assortment of shopping centres and leisure centres.

A photo of the street in West Ealing, London, showing a row of well-lit townhouses

West London

If you’re looking for property that has the highest potential for demand and very limited void periods, West London is ideal. Located in the heart of West London is Heathrow Airport, numerous large businesses and a vast amount of attractions. Known for its flocks of big crowds on match days, Wembley Stadium propels the interest in this area of London, making it one of the key places that investors choose to buy and tenants choose to rent. Kensington and Chelsea remain the most costly to buy property, as the average home sets buyers back around £683,000.

Investment property in Reading and London’s surrounding areas

In addition to Central London and the surrounding areas of the city, the towns within close proximity also present as attractive real estate for homeowners, tenants and investors. The vibrant university town of Reading is just 40 miles west of London and is highly regarded as a fantastic place to live and work in the UK. Many factors contribute to Reading’s stellar reputation, but the property growth statistics and forecasts are what make this large town a prime investment destination.

The South East’s economy and property market conditions are on an upward trajectory, and Reading in particular has demonstrated outstanding growth in the past few years.

The population has rapidly become dominated by relocating young professionals looking for affordable buy-to-let properties outside of London. In the first half of 2021, the South East experienced a rental growth increase of 10.6%, exemplifying the strengthening market and ever-growing demand for rental property outside of London. Moreover, the average price of properties sold there in 2021 was around £444,994, which is a significant rise compared with the average of £350,00 that houses were sold for in 2015. This growth is attributed to a combination of new residential developments, rising job opportunities and improving transport links.

Why is Reading an emerging area for property investors?

The desire to live within a commutable distance to the capital city has risen dramatically, likely due to the cost savings of outer-city living when compared to London’s rising house prices year upon year. Reading is conveniently located just 30 minutes away from London by train, allowing young professionals to take advantage of cheaper housing without compromising their careers. However, Reading’s job market is thriving in its own right, enabling many post-graduates to take up promising careers in this area. But why is Reading a property investment hotspot?

A view of the town centre in Reading
  • Regeneration: The town centre of Reading has become a focal point for multiple regeneration schemes looking to revitalise the area in order to lure more tourists and residents from adjoining towns, and improve the lives of those who live there. Part of the redevelopment projects planned for this town entails creating sustainable homes in order to evolve Reading towards a sustainable future. By 2022, the redevelopment of Station Hill will provide increased living spaces and multiple leisure facilities for residents looking to relocate and enjoy high-quality housing.
  • Successful economy: In 2019, Reading surpassed Manchester as the city expected to experience the highest growth in the UK over the 2018-2021 period. Compared to the UK average of 1.7%, Reading’s gross value added (GVA) is estimated at 2.2%. Part of the reason is its high-growth technology sector, which is on track for 3.5% growth over the next three years. Nearly a third of Reading’s jobs are in this sector. Many of the world’s most successful IT companies are based in Reading, which is one of the reasons why so many graduates look to this town for promising career prospects.
  • Educational institutions: The University of Reading is regularly praised and regarded as one of the leading universities in the UK. Boasting over 50 research centres, multiple awards and campus transformations, this university offers an array of unique opportunities for prospective students. The institute is also recognised for its expertise in areas such as business, science and technology due to its significant investment in and emphasis on research.
A freehold apartment block in Reading

BuyAssociation’s freehold apartment blocks in Reading

Investors that work with BuyAssociation have clear and precise objectives, which is why we work hard alongside our clients to achieve them.

We give our investors access to premium-quality freehold apartment blocks in this location that make valuable additions to landlords’ portfolios. As part of our commitment to our mission to source lucrative residential property, our experts identify Reading as a prominent area to secure high growth potential and profitable returns for investors.

As a result of our industry partnerships and group buying power, we have sourced a selection of freehold one- and two-bedroom houses in the heart of Reading. Highgrove Mews comprises eight contemporary homes, each designed with meticulous attention to detail. The stylish Highgrove Mews rental properties, due to be completed by May 2022, will provide investors with impressive yields in addition to strong capital growth over time.

BuyAssociation has a proven track record for connecting investors with developers, find out how we can help you secure profitable Reading property, discuss your portfolio goals with us today.

The importance of location when investing in property

At BuyAssociation, we source investment opportunities by conducting significant research on data and statistics, market forecasts, average property prices, economic growth and tenant demand. By paying attention to exciting locations with endless opportunities in industry and property, we can acquire developments that will maximise property portfolios. It is crucial as a property investor to focus on locations with strong metrics and positive forecasts.

Whether you are a first-time investor or an experienced property buyer, the following primary factors should always be considered when searching for advantageous investment property:

  • House values

    Taking into account the intended value of your property once it comes to reselling is vital for achieving capital appreciation. As part of your location research, take a look into the significantly higher valued homes and where they may be placed across the city. You want to ensure that the price you pay for a property is worth exactly what you pay, factoring in any additional costs such as requirements for renovation, property taxes and maintenance.

  • Rental prices and demand

    City centre living is popularising in many key cities across the country. For this reason, many tenants are willing to pay a high rental cost for the convenience of living in a central area in close proximity to universities, businesses and retail. By researching the average rent charges of different locations of interest, you will be able to accurately estimate the rental costs you should be charging. Similarly, it is essential that the location you pick has constant rental demand in order to avoid void periods and loss of income.

  • Market growth

    Investing in a prime area predicted for strong future growth is crucial to your decision making. By analysing the forecasts for population and economic growth, you should be able to narrow your search. As an increase in population occurs, the demand for housing correlates, leading to an even larger increase in investment opportunities.

  • Business opportunities

    Many of the UK’s biggest cities have transformed into specialised business hubs for a variety of sectors. By looking into the prospects for careers and upcoming jobs in different areas, you should gain an understanding of how likely people are to move to that location. Most of the UK’s thriving cities are also prominent for business, meaning that a rise in population is inevitable where people wish to relocate to advance their careers.

A luxurious apartment in London with large windows and elegant decor

Interested in investing in London property? Contact us today

Whether you are looking to buy a full block of residential units or to get ahead in the build-to-rent or HMO sectors, our London property specialists will endeavour to understand and fulfil your needs. We position you first in line for exclusive access to seemingly unattainable developments, allowing you to connect with developers before the property becomes available on the market.

To discuss an available investment opportunity that works for you, turn to us for unbiased, transparent and helpful advice. Let us help you with your property search in identifying affordable property that generates maximum income. We make the investment process as hassle-free as possible – give us a call to take advantage of our expertise.

Realtor giving senior couple key to new house renters
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