Rental yields remain one of the key factors for all landlords when looking to invest. Not sure what it is? Put simply, it’s the income generated by a property as a percentage of the property's value. London, with its high property prices, can be a challenging place to find good rental yields. However, there are still several boroughs in the city that offer great returns for landlords. In this article, we'll take a look at our top ten London boroughs to consider for rental yields to help stimulate your thoughts of where to look for your next investment.
- Hounslow - 5.8%
Hounslow is located in West London and is a popular area for renters due to its proximity to Heathrow Airport and easy access to the city via the Piccadilly line. The area has seen significant regeneration in recent years, including the development of the Chiswick Park business district, which has attracted many young professionals to the area.
- Barking and Dagenham - 5.6%
Barking and Dagenham is located in East London and is an up-and-coming area that has seen significant regeneration in recent years. The area is well connected to the city via the District and Hammersmith & City lines, making it a popular area for renters who work in the city.
- Bexley - 5.5%
Bexley is located in Southeast London and offers renters a more suburban feel than many other parts of the city. The area is well connected to the city via the DLR and has a strong local economy, which has helped to drive rental demand.
- Newham - 5.4%
Newham is located in East London and offers a great balance of value for money, space, and location. Being close to the Jubilee and DLR lines, it’s perfect for both city and docklands commuters.
- Redbridge - 5.3%
Redbridge is located in Northeast London and it’s its proximity to the city centre – and all that has to offer - without the high rental prices that make it so popular. The area is well connected to the city via the Central line, great, again, for commuters.
- Croydon - 5.2%
Croydon is located in South London and is an area that has seen significant regeneration in recent years, including East Croydon station redevelopment and the Ruskin Square development. It remains popular with renters because of its relative affordability, diverse culture and great transport links.
- Waltham Forest - 5.1%
Waltham Forest combines affordability and accessibility, and a diverse range of amenities and cultural offerings. Transport links are fairly good, with the Victoria line among others servicing its population.
- Greenwich - 5.0%
Greenwich is located in Southeast London and is an area of outstanding parks and history. The area is well connected to the city via the DLR and Jubilee line, linking it well to both the city and docklands.
- Hillingdon - 4.9%
Hillingdon is located in West London and combines suburban living with close proximity to both the green belt and Heathrow airport. Having London's largest airport located close by means the area is very well serviced by public transport via the Piccadilly and Metropolitan lines.
- Havering - 4.8%
Havering feels both urban and suburban, combining plenty of green parks and spaces with the renters' usual desire for proximity. The area is very well connected with both the District and Hammersmith & City lines stopping in its bounds.
So, when it comes to rental yields, London can still offer some surprises, especially in those more unusual boroughs that offer renters the combination of transport link and price.