London’s buy-to-let hotspots for Stamp Duty savings and yields
SE17, which covers parts of Lewisham, Southwark and Lambeth, is one of the best buy-to-let options in the London market, according to Benham and Reeves.
With an average house price in the postcode of £560,120, investors looking to buy now are in line for the maximum stamp duty saving of £15,000.
In addition to this, SE17 is home to the highest yields of all postcodes that present this maximum SDLT saving; with an average rental yield of 4.1%.
The estate agent looked at average house prices, rental yields and the stamp duty savings that can be achieved during the current eight-month reprieve to find the locations with an attractive combination for landlords.
In addition to SE17, Kennington and Peckham both also offer the maximum Stamp Duty saving, with yields as strong as 4%.
Other postcodes where landlords can secure the maximum £15,000 saving, as well as above-average rental yields, include the IG7, SW9, SE16, E9, SW2, N7 and IG5 postcodes with yields ranging from 3.7% to 3.9%.
Landlords can save upwards of £10,000 in SDLT in 16 other postcodes that are also home to above-average yields.
However, the SE28 postcode in Thamesmead offers the most affordable investment.
The postcode is home to an average house price of just £275,498, and while it also offers the lowest SDLT holiday, landlords can still save £3,775 with the area home to an average yield of 5%.
Director of Benham and Reeves, Marc von Grundherr, said: “For far too long the government has squeezed the life out of the buy-to-let sector, and so it’s great to see that, finally, there has been some financial breathing room afforded to landlords.
“Not only is there a considerable saving of thousands of pounds in Stamp Duty on even the most affordable investments, but we’re seeing above-average rental yields the length and breadth of the capital.”