The recent tax crackdown has put the pressure on buy-to-let investments, but while interest rates remain low, property is still a relatively attractive opportunity for those with a little bit of extra cash.
London is an exciting market to spend your money, as the wide variety of housing stock and promise of rising property values keep landlords on their toes.
Yes, your property yields will likely be higher elsewhere in the country, but the constant demand from a diverse clientele provides options like nowhere else.
If you’ve done the maths and are certain that a buy-to-let in the capital is what you’re after, here’s the rundown of reasons that make investing in North London so appealing.
A Diverse Range of Neighbourhoods
North London comprises of Barnet, Enfield, Haringey, Hackney, Camden, Islington and Westminster. Across these boroughs you can find leafy villages, cosmopolitan clusters and plenty of redevelopment, attracting new renters in droves – adding to the considerable 1.4 million current residents.
Islington is trendy and intellectual, packed with a mixture of young professionals and arty types that appreciate its independent restaurants and local bars. Its polar opposite could be Barnet, London’s largest borough, which offers a quiet, green oasis on the fringe of the suburbs. Westminster is arguably the most well-heeled area, housing the affluent overflow from neighbouring Mayfair and Belgravia in impeccably-kept Queen Anne and Georgian terraces.
In short, you’ll find no shortage of contemporary, purpose-built apartment complexes as well as traditional tenement homes and family friendly terraces. Do your research on the areas you like best, and speak to local experts and London based property managers to decide where your money will go furthest.
There are already plenty of employment opportunities in the area, with strengths in service industries, the public sector, finance and retail. While manufacturing has previously played a large role in North London, this is now declining, while the creative sector is rapidly growing in terms of employment. On top of existing roles, areas all over North London have been primed for regeneration and development, meaning that as the population increases employment should keep up.
Thanks to these securities there is a constant demand for housing. A home in North London will attract a huge variety of people from all walks of life.
Tube and rail remain the fastest ways to get around North London. Depending on your cut-off points, the region has around 27 underground stations (served by the Piccadilly, Northern, Victoria and Central lines), as well as 40 national rail stops for trains by Great Northern, WAGN and West Anglia. From High Barnet, in Zone 5, your commuting tenants can reach central London (using Leicester Square as an approximation) in just 32 minutes.
While this may represent a particularly speedy journey, it does reflect the strength of the North London rail network. Travelling by road is more of a challenge, with an increasing population putting strain on the A1 and A10 that take drivers between the M25 and Central London.
Keep these figures in mind when choosing the exact location of your investment property. Yes, prices will inevitably go up for homes closer to a tube station, but so too will the rent you can charge.
Now could be your moment
With London property market growth well and truly paused and most buy-to-let investors hovering over their triggers, those who are confident in their decision to purchase in the capital could have their pick of the crop. If you’re not worried about turning around a quick buck (house prices are predicted to remain flat next year, but expected to recover by 2022) then now may be your opportunity to play the long game.
Buying to let in London might not provide the same security as running a rental elsewhere in the country, but that’s part of the thrill of buying in the capital. North London offers such a range of opportunities that you can find exactly the right home for your investment preferences, and you can always be sure you make your money back should you choose to sell. Good luck!
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