For property investors, there are few cities as ripe with opportunity as London. Spread across its 32 boroughs, London has properties of every conceivable type. It also has properties at every point on the price spectrum. You can invest millions or you can invest just a few hundred thousand.
Below are our recommendations for where in London you should invest your money.
Which Is The Best Area For Property Investment In London?
Like any major industrialised capital city, London is constantly evolving. As different parts of the capital fall in and out of favour with investors and homebuyers alike, the prices of property can rise and fall dramatically. If you manage to invest at the right time, you can ride the wave of a price increase to reach enormous profits. Of course, if it were that easy, everyone would be doing it. Identifying the right areas to invest in is hard enough. It is made even harder by London’s unpredictability.
That said, some areas stand out as being particularly attractive for property investors. If your only concern is purchasing a property that is likely to increase in value, the areas that we have outlined below are all worth considering.
Barking And Dagenham
Dagenham is a relatively quiet suburban town in east London. The Borough of Barking And Dagenham covers a wide area, one that stretches from Barking in the west to Rush Green in the east. The area has gained a reputation as one of the best boroughs in London for families. It has also seen impressive growth in house prices over the last five years, easily outstripping the average for the capital as a whole.
The borough has numerous transport links with the rest of London, and it is due to receive a Crossrail station in the future.
The Borough of Tower Hamlets is slightly more expensive than its neighbouring boroughs. However, it is a place that has a lot going for it. Within Tower Hamlets are several desirable areas, including Canary Wharf, Whitechapel, and Poplar. These are all attractive prospects for investors looking for relatively safe property investment. You can be sure that prices in these areas will hold steady, if not increase, in the near to medium-term.
Redbridge is a borough that is overflowing with property investment opportunities. The value of property in Redbridge varies from around £294,000 in Little Heath, up to £709,000 in Woodford Wells. Homes & Property are projecting an increase of 17% in house prices over the next five years. The new Elizabeth Line will improve the already comprehensive transport links and enable commuters to ride out as far as Reading.
Where Can I Find The Best Investment London Property For A Buy-To-Let Investment?
London has always been an attractive investment target for buy-to-let investors. The capital is full of desirable locations. It caters to people from all manner of economic backgrounds. Because there are properties available at every price point, there are boundless opportunities for investors looking to become landlords. If you have millions at your disposal, you might be able to afford property in one of central London’s many world-renowned affluent districts.
But you don’t need to have a seven-figure budget to be able to enter the buy-to-let market. London is a vast place. Not all of the 32 Boroughs are as busy and hectic as London’s central boroughs. As you move out east, for example, you encounter Dagenham and Barking and Newham, both of which are home to suburban villages.
The Borough of Newham is a popular option for buy-to-let investors, and it isn’t hard to see why. The average monthly rent comes in at just under £1,500. The average asking price for a house in Newham is £354,162. If you have £500,000 or more available to invest, you can find some really attractive options. Newham is far enough away from central London that you don’t have to deal with the full-on city experience. However, the borough has excellent transport links with central London.
Not only can you quickly get to central London from Newham, but the area has plenty to offer in its own right. There are 80 hectares within the borough of Newham that the government has designated as part of the Metropolitan Green Belt, which covers London and the surrounding areas. There are also ten libraries in the area and Newham as a whole is considered one of the best parts of London for education. The education infrastructure makes Newham an attractive borough for families.
On the other hand, if you are thinking of investing somewhere a little more upmarket, Wandsworth Council has announced plans to build more than 3,000 luxury homes in the Battersea area. Existing properties in the area are likely to increase in value when these are finished. The entire area surrounding Battersea Power Station is due to undergo a multibillion-pound rejuvenation. Once construction is complete, the zone surrounding the iconic Grade II listed building will be a significant social and economic hub. In addition to the new housing going up, there are plans to build commercial properties as well.
What Are The Best London Property Investment Areas For House Flippers?
House flipping has proven a popular form of investment for those who prefer a more hands-on investing experience. House flippers are responsible for bringing their properties up to a standard where they can sell it for more than they paid to buy it. Many investors prefer doing this to purchasing a property that they expect to increase in value without them having to renovate.
While the renovation work that house flippers do to their properties will determine how much they can sell them for, they are not the only factor. House flippers can enhance their earnings buy flipping property in areas where house prices look likely to rise anyway. The areas we have identified below are among the most promising in London.
Havering is another east London borough that offers some respite from the hustle and bustle of the capital’s centre. As well as being an attractive place to live, Havering has also attracted a range of businesses to the area in recent decades. The local economy incorporates numerous sectors, ranging from manufacturing to logistics and engineering.
Havering is also another area that is due to get a Crossrail station, connecting it to London and beyond. In recent years, the council has made serious improvements to the road layout in the borough. These improvements have significantly improved the flow of traffic and the driving experience for residents.
Ilford is a great borough to invest in. The area is rapidly emerging as the next big commuter hub, and the impending arrival of Crossrail will only speed up this transformation. In addition to Crossrail links, Ilford is also due to receive a multimillion-pound investment project that will see large swathes of the borough rebuilt. The district is even preparing to construct its first skyscraper, which should be complete by the end of 2021.
Average property prices in Ilford have gone up by 60% in the last five years. Property investors still have time to get in and take advantage of this strong performance. Despite this increase, property prices in Ilford are among the most affordable in the capital.
Where Are The Best Places in London to Invest in Property For The Long-Term?
If you are thinking about long-term investments, then you need to look beyond Crossrail. When the project is complete, Crossrail will raise the values of properties in many places. However, five or ten years after Crossrail is finished, other factors will determine whether these increases hold or sink back down.
For long-term investors, central London might offer a more dependable investment target. Some parts of central London are always reliable investments. For example, property in Mayfair isn’t likely to lose its value anytime soon.
There are few parts of London as reliable for investors as Westminster. The Borough of Westminster isn’t just physically at the heart of London, but culturally and politically as well. There are several regions within Westminster, such as Mayfair, Hyde Park, and Regent Street. Property in any of these places is almost guaranteed to hold its value in the long-term.
How to Choose The Best Property Investment in London For You
Choosing the right investment property will depend on many factors. The most important considerations are your available resources and your investment goals. If you are looking to make money relatively quickly, you should look at house flipping. On the other hand, if you are willing to wait a while, you should consider investing in an area like Battersea that is due to receive an investment boost.
There is no shortage of property investment opportunities in London. Within the 32 boroughs, there is a diverse mix of people, cultures, and backgrounds. This diversity is reflected in the properties and opportunities that are available to investors. Whether you want to invest in a buy to let family home in the suburbs or a commercial premises in the city centre, London has something for everyone.