Discover best London borough for rental growth in September 2022. Double-digit price increase recorded in this Zone 2 location.
For property investors, determining the best London borough for rental growth is a good way to establish demand for Buy-to-Let investment.
After all, London is a big city. Each borough has its quirks and identity, making it a hotbed for landlords who wish to capitalise on the high demand and the variety of property needed to house Londoners.
Whilst the Capital is home to the UK’s highest property prices (and in some areas, the lowest yields), it is also filled with unrivalled growth opportunities that investors shouldn’t overlook.
Fabrik Invest’s latest fully managed Buy-to-Let opportunity Heathside in SE10 is a prime example.
With prices starting from £425,000 (below the city-wide average of £523,666), Heathside offers buyers the opportunity to own a new-build property in Zone 2.
According to CBRE, there has been a surge in demand for rental property in Zone 2 boroughs, as people look to secure better value for money whilst benefitting from short travel times into the city.
No.1 London borough for rental growth
In September 2022, HomeLet reported that Bexley and Greenwich was London’s no.1 borough for year-on-year rental growth, with the cost of new tenancies up by an average of +19.8% (UK average +9.2%).
Although investors should remember that this double-digit increase reflects a rebound in rents following a decline over the pandemic, market fundamentals indicate that rents will continue to climb above-average levels into 2023 in more affordable boroughs.
After all, higher mortgage rates will compound the pressure of demand from first-time buyers, and with housebuilders unable to keep up with targets, the prospect of an improved rental supply is doubtful.
Why invest in London Buy-to-Let property?
Securing an apartment within Heathside at the earliest stage will save you money in the long run.
Property values within the development are set at the lowest possible pricing, meaning you’ll secure the best deal and unit by acting now.
Given the recent change to Stamp Duty, you’ll also benefit from paying a lower rate, which means you will save around £2,500 (based on a £425,000 apartment) compared to before the government’s mini-budget announcement.
With a favourable payment plan spread across the build phase, only 10% is required at Exchange of Contracts. Plus, with completion due in Q4 2023, mortgage buyers will have plenty of time to secure a decent mortgage product.
If you think Heathside SE10 is the opportunity you’ve been waiting for and would like to discuss how it will fit into your investment strategy, contact Fabrik Invest.
