Peckham offers best yields for landlords
Rental yields in Peckham were estimated to reach 6-9%, while yields in Chislehurst, Bromley and Hayes were similarly high. By contrast, landlords in the affluent areas of Belsize Park and Marylebone saw yields of only 3%.
Kinleigh Folkard & Hayward regional sales director for south east London Julian Peak said areas such as Peckham were enjoying considerable growth and investment: “Lenders are still demanding large deposits from buy-to-let investors, and the interest rates charged, despite more schemes becoming available, are still considerably higher than the residential mortgage rates.
“Cash is very much ‘king’ and if a buyer has the deposit there are excellent investment opportunities throughout South East London especially for two bedroom properties.”
Despite the high yields offered by the south east, buy-to-let properties made up less than one in ten of sales in nearly three-quarters of neighbourhoods. The exception was Borough, where half of sales classed as buy-to-let.
The London estate agent’s managing director Lee Watts said: “When it comes to the reasoning behind the purchases, there appears to be a pattern developing.
“The majority of all buy-to-let purchases last year were made by those looking to safeguard their pension. Many are in their 40s, 50s or 60s and see property as offering a better return than bank accounts, bonds or other investment vehicles.”
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