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Estate agents Portico London have released their list of the top places to buy-to-let in London.
The areas are listed in order of highest potential yield to lowest potential yield, according to Portico's Interactive Rental Yield Map.
Rental yield is the potential annual rental income of a property as a percentage of the property's capital value.
The majority of areas touted as hotspots are located in the outer London boroughs — Ilford, Hounslow, Greenford, Croydon — though the agency states that Whitechapel and King’s Cross are safe bets if you want to invest centrally.
Here is the list:
9. King’s Cross
Current highest yield: 4.4%
The area used to be the capital's red light district, but extensive redevelopment means it is becoming more appealing as a place to live. Portico's regional director Mark Lawrinson says that with the largest network hub in London offering trains into Europe and possible HS2 to Birmingham, the area is attracting many young professionals. It is also a commercial hub - businesses including Google are opening up headquarters here.
8. West Drayton
Crossrail plans for a new station at West DraytonCrossrail
Current highest yield: 4.8%
West Drayton, in Greater London, is currently undergoing a huge facelift as a result of Crossrail. Crossrail is a 73-mile railway currently being built across Central and Greater London. West Drayton's proximity to Heathrow also makes it appealing.
7. Forest Gate
Sunset on Wanstead flats, near Forest GateBlowe.org
Current highest yield: 4.8%
Forest Gate, in northeast London, is yet another area where Crossrail has caused house prices to rocket. Despite that increase, though, it is still one of the cheapest areas to live in London, making it attractive to investors.
6. Whitechapel
Current highest yield: 4.8% around Fenchurch Street station
Most areas that offer a high yield are in Zones 3 outwards, but east London's Whitechapel is a good investment due to Crossrail, and the demand from those working at nearby tech hub in Old Street, dubbed the "Silicon Roundabout," has helped boost prices. That is because it is only 5 minutes away to Shoreditch High Street on the Overground rail and a mere 10 minutes walk to tech mecca.
5. Wood Green
Current highest yield: 5%
“For those planning further ahead, look at the Crossrail 2 map, and focus on areas such as Wood Green and the 'Haringey Ladder' which is primed for regeneration and gentrification,” says Lawrinson. Wood Green is in Greater London, ten miles north of Charing Cross.
4. Croydon
Current highest yield: 5%
Croydon is another area which is affordable in comparison to London prices. It is undergoing massive regeneration and also has good transport links to central London. It is in Greater London, ten miles south of Charing Cross.
3. Greenford
Greenford, EalingWikipedia / CC 3.0
Current highest yield: 5.3%
Greenford, in the Greater London borough of Ealing, is becoming increasingly popular due to good transport connections and low house prices. It is also close to Ealing Broadway, which is now benefiting from the new Night Tube service.
2. Hounslow
Current highest yield: 5.3%
Hounslow is seeing an influx of people moving in from surrounding areas where house prices have inflated more. The area's proximity to Heathrow and links to the M4 motorway also make it an attractive area to invest. Hounslow is the principal town in the Greater London borough of Hounslow.
1. Ilford
Current highest yield: 5.5%
Lawrinson says that Ilford will attract a "new wave of renters" when Crossrail arrives next year. "The area is being touted as the new Bethnal Green, thanks to an array of cafes and shops popping up," he added. Ilford is the located in the north-east borough of Redbridge.
