An analysis by a lettings management service has identified those parts of London with the strongest yields and capital growth in recent years.
Herddle - which has taken its data from Zoopla - says the top three areas with the most attractive recent growth start with Woolwich, where thanks to regeneration and the promise of new transport links to come, the current average house price is £481,000, up £272,000 from five years ago.
That’s an increase of 77 per cent.
Next up is Brentford which has seen a rise of around £135,000 since 2015 .
Then there is Bayswater in prime central London, which has defied the trend of falling values seen in much of the capital’s central area. The average property in the W2 postcode costs £1.25m, a slight increase from the £1.2m price point of five years ago.
Meanwhile the platform says the best yielding parts of London start with East Ham, currently offering highs of 4.81 per cent which is significantly above the average.
Then comes Stratford, a rental hotspot 12 years on from its role in the Olympics. Currently, portfolio investors can expect to achieve yields of more than 4.0 per cent in the E15 postcode.
Finally there is Poplar, relatively close to Canary Wharf so with an appeal to professionals – yields come in at just over 4.0 per cent.
“In addition to postcode, a big part of maximising returns from residential property is asset management. It’s not just the preserve of big institutions with commercial property portfolios – it works just as well in residential investment too, because better buildings usually deliver better returns” claims Herddle chief executive Corey Cummins.
“We’d urge family offices and advisers to the wealthy to consider making the most of every last drop of growth and yield as we head towards more uncertain times.”
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