Now is a good time to invest, says industry expert
New research by mortgage broker Revolution Brokers has revealed which Crossrail stations currently make the best investment for buy-to-let landlords based on the average rental yield available in each station postcode.
The specialist broker said that a buy-to-let investment within a Crossrail postcode, in general, will return a yield of 3.7%, with this average profit margin increasing from 3.4% a year ago.
But which stations in particular are best to invest in?
According to Revolution’s research, the E16 postcode, home to the Custom House Crossrail station, registers an average rental yield of 4.9%.
“Crossrail is one of the most significant developments to travel infrastructure within London and the South East in many years, so it’s hardly surprising that homebuyers and tenants alike are flocking to areas with direct access to the Elizabeth line,” Almas Uddin, founding director of Revolution Brokers, said.
“This heightened demand for rental properties presents a great opportunity for buy-to-let investors, as demand for Crossrail rental homes is only going to grow now that the service is finally starting to run.”
Uddin added that property values along the route have already climbed significantly and so it’s important to find the right balance between this initial cost and the rental income available to ensure a good return of investment.
“The good news is that despite this strong market growth, there remains a wealth of stations offering a very respectable rental yield and so now is as good a time as any to invest,” he continued.
The E15 postcode is home to both the Maryland and Stratford stations, as well as a very respectable average rental yield of 4.8%.
Southall also boasts a current average rental yield of 4.8%, while Forest Gate and Canary Wharf rank high at 4.5%.
Other stations to make the top 10 best buy-to-let investments along the Elizabeth line at present include Whitechapel (4.4%), Woolwich (4.3%), Abbey Wood (4.3%), West Drayton (4.3%), and Manor Park (4.3%).
In contrast, the average yield is currently just 1.9% in the W1 postcode, home to the Tottenham Court Road and Bond Street Crossrail stations.
Meanwhile, Custom House and Forest Gate not only boast some of the highest average rental yields, but at 0.8%, they have also seen the largest annual increases across the entire network.
Reading, Southall, Canary Wharf, and Whitechapel have also witnessed some of the strongest growth, up 0.7% in the last year.
Twyford has seen the largest annual decline in the average rental yield at -0.6%, while Chadwell Heath, Romford, Harold Wood, Langley, Goodmayes, and Seven Kings have also experienced a decline, albeit to a more marginal extent.
