78% of London landlords plan further investment

View over London from the air

With rental demand still high, London and the South East retains plenty of appeal for many buy-to-let landlords, with 78% of the capital’s landlords planning expansion of their portfolios.

New research from Direct Line for Business indicates that North East London has been named by 30% of landlords as the best location to invest in, followed by South East London and then East London.

In particular, the data reveals Woodford, Leytonstone and Redbridge as areas of real interest to landlords.

The importance of good proximity to transport links – especially rail links, was underlined by this report, with properties situated close to underground stations considered the most desirable by landlords.

Homes located on Central line stations are viewed as offering the best investment opportunity, followed by those located on the Jubilee or Piccadilly line.

Additionally 72% of landlords rated properties with national rail connections as attractive to prospective tenants, while London Overground links were ranked desirable by 71% of those surveyed. Bus routes (68%) and tram routes (60%) were considered less attractive draws for potential tenants.

The advent of HS2 was considered likely to have a positive impact on London property values among 63% of landlords.

Christina Dimitrov, business manager at Direct Line for Business, said:

Landlords across the capital will always be looking for the ‘next big thing’ in property, as there are always trends in demand with people wanting to rent in the latest up and coming area.

"We have seen this before with the likes of Tooting, Bethnal Green and Walthamstow suddenly becoming ‘hot spots’.

Andrew Turner, chief executive at Commercial Trust, commented:

This report pinpoints a number of important elements that make London such an attractive region to invest in.

"London is a city that never stands still, it is always evolving and the introduction of the HS2 transport system can only enhance property values both in the capital and along the commuter line it creates.

"The importance of good rail links has been endorsed by landlords in this research; London still serves as the financial hub of the UK, with millions commuting for work every day, many of whom are would-be tenants or investors.

"Whilst prices in London remain high both for property investment and rent, the city continues to grow, with new build projects underway, offering new opportunities for investment.

"It is terrific to see so many London landlords showing confidence in the market and there is no better endorsement for investing in the capital’s property.

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This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.