If you’re looking for somewhere new to invest this year, leading estate agent Portico has revealed eight potential London property hotspots for 2020.
With house prices in London remaining relatively flat over the last couple of years and wage growth increasing, the agent has calculated that it has become 10% more affordable to purchase a property in the capital.
Vatche Cherchian, Portico’s Regional Director, comments: “While house prices in London have remained relatively flat over the last couple of years, wage growth hasn’t. We’ve actually seen a 4% growth year-on-year in wages. And if you tally that wage growth increase up against flatlining London house prices, what you’re saying in real-terms is that it has become around 10% cheaper to buy a property, which is encouraging.”
There has also been an increasing demand for rental properties in London, but a low supply of stock. This has resulted in increasing rents and healthy yields.
The recent housing report from Tony Blair states that, if we see the Conservative manifesto proposals carried out, we could see a 26% rise in prices. For investors looking to use these factors to their advantage, Portico has used its extensive market research and London rental yield data to conclude the following property hotspots for 2020:
1. Barking & Dagenham
Average house price: £318,527*
Average rental yield: 5.4%**
2. Sutton
Average house price: £387,286*
Average rental yield: 4.4%**
3. Havering
Average house price: £392,031*
Average rental yield: 4.9%**
4. Ilford
Average house price: £421,226*
Average rental yield: 5.5%**
5. Newham
Average house price: £445,425*
Average rental yield: 4.9%**
6. Redbridge
Average house price: £488,632*
Average rental yield: 5%**
7. Hounslow
Average house price: £497,758*
Average rental yield: 4.7%**
8. Tower Hamlets
Average house price: £545,550*
Average rental yield: 4%**
*Rightmove data correct as of 16.12.2019
**Portico rental yield map data correct as of 16.12.2019