14 September Best Area for Buy-to-Let Investments in London
Can you still make a return on buy to lets in prime central London?
Typically rental yields in the prime central market are among the lowest in the UK, but there are still plenty of places where a good return can be made in the heart of London.
Recent data from Knight Frank reveals that rents in Mayfair have risen by 5% over the past 12 months, which is the largest increase across the prime central London area. The property firm cite public realm improvements and high-quality new builds have led to increased demand in the area, hence the price rise.
The length of tenancies overall has been increasing. The average length of a tenancy in prime central has risen steadily over the last few years and now sits at over 16 months.
It is understood that this is, in part, due to the continuing uncertainty in the sales market which has given rise to tenants being more willing to commit to longer term rents, improving their stability and security for longer periods.
A strengthening demand among corporate tenants, many of whom it is believed rent second homes in the capital, has tenancies to hit a 3-year high.
Knight Frank’s data supports separate data from Strutt & Parker which shows that the uptake of new rental properties in prime central London in the second quarter of this year rose significantly against the same period last year.
Overall the rental market remains strong and the potential for investment opportunities with good returns, both on monthly rental fees and improved equity are still extremely viable.
At Walton Estates we strive to always ensure you are given the very best information, the best advice and guidance and the best service we can in order to make your property investment the very best it can be.
Contact us today to enquire about your prospective rental returns or to find out about our latest buy to let opportunities.