Buy-to-Let Property Investment Areas of London

Why invest in London?

London stands as a premier investment destination due to its status as a global financial capital, attracting over £20 billion in cross-border investments in 2022. It ranks as Europe’s top financial center, second only to New York, and boasts the world’s largest airport system, enhancing connectivity for businesses and investors.

The city is also an innovation hub, leading in tech investment with $79.6 billion in venture capital over three years, and home to the highest number of $1 billion+ tech companies in Europe.

Find the top buy-to-let and rent-to-let property investment opportunities in London. 

Property investment opportunities in London

1. Stratford

Stratford is a top spot for property investment with its great access to amenities and transport. It’s a hotspot for investors due to its growing demand in both residential and commercial properties.

• Housing: Mix of new-build apartments and townhouses; relatively affordable for London
• Amenities: Westfield Shopping Centre, Olympic Park, numerous restaurants
• Transport: Excellent connections via Underground, Overground, DLR, and international rail
• Notable: Ongoing regeneration since the 2012 Olympics; significant potential for capital growth

2. Peckham

Peckham is a prime investment opportunity in 2024, with property values rising 7.81% in the past year. Strong rental demand and limited supply position it favorably for growth and stability.

• Housing: Victorian terraces, modern flats; mid-range prices, still relatively affordable
• Amenities: Trendy bars, art galleries, Peckham Levels, multicultural food scene
• Transport: Well-connected by Overground and buses; quick access to central London
• Notable: Rapidly gentrifying area attracting young professionals and creatives

3. Wembley

Wembley is quickly becoming a go-to area for rental investments in London. With lots of new developments, it’s offering renters high-quality homes and solid returns for investors.

• Housing: New apartments and shared ownership schemes; affordable options available
• Amenities: Wembley Stadium, London Designer Outlet, Boxpark Wembley
• Transport: Multiple Underground lines, Overground, and National Rail connections
• Notable: Massive regeneration project ongoing; potential for long-term appreciation

4. Croydon

Croydon is a smart choice for property investment with its affordable housing and strong transport links to central London. The area’s regeneration is turning it into a desirable spot for both residents and businesses.

• Housing: Mix of period properties and new developments; relatively affordable
• Amenities: Boxpark Croydon, multiple shopping centers, Restaurant Quarter
• Transport: Fast connections to central London via rail and tram network
• Notable: Major redevelopment plans; dubbed “Silicon Valley of South London”

5. Woolwich

Woolwich is a rising property investment hotspot in 2024, offering affordable housing and strong rental growth. Its excellent transport links and diverse options attract both buyers and investors.

• Housing: New riverside apartments and period conversions; still reasonably priced
• Amenities: Royal Arsenal development, upcoming Creative District, Thames Barrier Park
• Transport: DLR, National Rail, and new Crossrail station opening soon
• Notable: Significant regeneration underway; poised for growth with improved transport links

What is the average rental yield in London? 

The average rental yield in London is approximately 4.7%, based on data from propertydata.co.uk. The highest rental yield recorded is 6.7% in the RM10 postcode district, while the lowest is 2.6% in the NW11 postcode district.

Contact Pluxa Property to explore all property investment opportunities in London

Pluxa Property, the leading property investment company in the UK, can help you explore lucrative opportunities in the London market. 

With over 10 years of expertise, we offer a wide range of services, including:

• Rent to serviced accommodations
• BRRR investments
• Buy to serviced accommodations in UK

Our team of experts can assist you in finding the right property, negotiating the best terms, and implementing effective management strategies to maximize your returns. Contact Pluxa Property today to start your property investment journey in London.

FAQs About London

Is London a good place to invest in?

Yes, London is a great choice for property investment in 2024, primarily due to its economic fundamentals and high growth. The city’s GDP, projected to rise from £646 billion in 2023 to £1.23 trillion by 2040, underscores its status as a global economic powerhouse. Additionally, rental prices have surged by 31% over the past two years, with forecasts predicting an 18.4% increase in rental prices over the next four years, reflecting strong demand in the market.

What is the average monthly private rent in London? 

As of June 2024, the average monthly private rent in Stratford (London) is £1,028. This reflects a 4.7% increase from £982 in June 2023, surpassing the overall rise in the West Midlands, which was 8.4% over the same period.

Is London a good place for rent to rent? 

Yes, London remains a strong market for rent-to-let investments, with average rental yields between 3% and 5%. Despite high property prices, the demand for rental properties continues to grow, driven by a diverse population and a robust job market. This makes London an enduring choice for landlords seeking stable returns.

What is the estimated payback period for rent to rent in London?

The estimated payback period for a Rent-to-Rent investment in London is 7 months. This timeframe reflects the period needed to recoup the initial investment through rental income at Pluxa Property.

How much initial investment do you need to invest in London for rent to rent?

To start a Rent-to-Rent investment in London with Pluxa Property, you typically need an initial investment of approximately £15,271. This investment is estimated to yield a monthly profit of £1,281, with a remarkable ROI of 499% and a total estimated profit of £46,120.