Outer boroughs reap the attention of graduates moving to London
The outer boroughs of London should be a consideration for landlord’s looking to invest in the capital, according to new research.
These regions of the city offer attractive yields and are generally more affordable when it comes to the cost of buying a property.
Thousands of graduates will be looking for a place to live in order to begin their first job in the capital and many are looking for an affordable place.
Graduates in London often spend half of their monthly income on rent while those who live alone can face up to three quarters of their income on rent.
Regions such as Bexley, Sutton, Havering, Croydon and Bromley are areas where the most affordable average residential rents can be found and hence they are experiencing a growing demand for rental property.
The latest Landbay Rental Index has revealed the average rent in Bexley to be £1,004 per calendar month (pcm). Bexley has seen the strongest rental growth of all boroughs in the capital with a 1.98% increase in average rents over the past year.
On the other hand, the most expensive boroughs for renting property have all seen a fall in demand including prime regions such as Kensington & Chelsea, Westminster, Camden, City of London and Hammersmith & Fulham.
John Goodall, CEO and founder of Landbay, said: “Faced with record high student debt levels and the rising cost of living, it will be little surprise to see graduates starting to look elsewhere from the traditional young professional hot spots such as Fulham and Camden when they come to London.
“Surrounding areas are clearly worth the longer commute to reduce the rent burden and give them any hope of saving for a deposit on a house of their own one day.
“There are of course a number of factors at play, but as returns fall in the more central locations, landlords may look to the outer boroughs to seek more attractive yields.”
Landbay’s Rental Index shows the year on year percentage change in rent in all London boroughs:
|Ranking||London Borough||YoY %||Av. £|
|7||Barking and Dagenham||1.49%||1,203|
|12||Kingston upon Thames||-0.77%||1,280|
|22||Richmond upon Thames||-1.00%||1,575|
|29||Hammersmith and Fulham||-1.67%||1,886|
|30||City of London||-2.35%||2,074|
|33||Kensington and Chelsea||-2.36%||3,042|