Forget those fancy West End flats, smart investors are heading to East London! Tower Hamlets is the new star of the buy-to-let world, offering a 5.9% rental yield – that’s way higher than the London average of 4.81%.
It’s simple: high demand, low prices! The average property in Tower Hamlets costs £456,375, but renters are paying £2,244 a month. That means you’re getting a healthy return on your investment.
More Good News for Buy-to-Let Investors
The experts at SBA Property Management say this is just the beginning. Falling mortgage rates are making it easier and cheaper to get a loan, and with the Bank of England slashing interest rates, this trend is likely to continue.
Beyond Tower Hamlets: Other Hidden Gems
Tower Hamlets isn’t the only hot spot. Here are some other East London boroughs offering impressive returns:
- Newham: 5.23% average yield
- Barking & Dagenham: 5.06% average yield
- Greenwich: 4.96% average yield
Barking & Dagenham is particularly attractive for new investors. With average house prices lower than anywhere else in London, you can get started with a deposit of just £51,060 for a typical 15% down payment.