Barking has been revealed as the best place to invest in by London estate agents Portico, which has 18 offices in the capital. The agency produced a rental yield Tube Map, which found that the East London town was the best location for landlords and investors looking for the highest gross rental yields.
Portico stated: “Over the past five years, all 32 London boroughs (and particularly those in central London) have experienced substantial property price growth, fuelled by a combination of record levels of overseas investment and historically low interest rates. However, while property prices have increased substantially, rental prices have broadly continued to track earnings growth. As a result, rental prices have not increased at the same rate as property prices and yields have steadily declined in central areas for at least the past five years that we have been tracking them.”
On a daily basis, Portico says it analyses property prices from several hundred estate agents in London. “We combine this instantaneous picture with data collected over the past three months and compare this against own internal company data, so that we have enough data to be able to make statistically reliable assessments of the median sale price against the median rental price for several different types of property,” the firm stated.
Portico then created an average gross rental yield for each London tube station where sufficient data was available. The top eight areas for gross rental yields in London are below.