Thinking of buying an investment property in 2019? If so, you might be wondering where in London you should be focussing your search in the year ahead. We've compiled this shortlist of buy-to-let hotspots in London that we think will take off in 2019, to help guide you on your journey to finding the perfect buy-to-let property.
Sandwiched between Crouch End and Alexandra Park, lesser-known Hornsey is an obvious choice for north London investors searching for a popular area with relative affordability. Here, average property prices* are lower than the surrounding areas, but the housing stock is of equal quality and is lucrative for the buy-to-let market.
Hornsey has a great choice of properties perfect for investors, whether it be period conversions or brand new developments – and these new developments are slowly starting to change the feel of the neighbourhood by attracting young professionals and first-time buyers. As an investor, now is a great time to take advantage of the changes that this regeneration is bringing to the area.
Out in west London, Hayes is a sound investment option for buy-to-let investors for many reasons. The arrival of Crossrail in late 2019 will mean journey times of just 5 minutes to Heathrow and only 20 minutes to Bond Street. These greatly improved journey times will really open up the area to investors and renters, as those commuting into central London may start to see Hayes as a credible option for renting and demand for properties is likely to rise.
Hayes also benefits from close proximity to a number of large west London employers, including Heathrow Airport. Improvements are also being made to the town centre. Depending on how much money you are looking to put into your next property, Hayes should be a serious contender when searching for a place to invest, especially as it has both family and professional appeal.
Much of Leyton’s development in recent years can be attributed to the creation of the Olympic site in nearby Stratford, which prompted quick enhancements to be made to Leyton’s high road before the start of the 2012 event. Since then, Leyton, like many areas in east London, has grown to be loved by London’s younger rental population for its alternative pubs and independent cafes, which have brought in different types of homebuyers and renters.
In Leyton, the housing stock consists of mainly period terraced homes – either those that have been converted into flats or whole houses. Generally speaking, these second-hand homes are cheaper than their newly constructed counterparts, which can be attractive for investors on a tighter budget. However, if you’re an investor who prefers newer properties that are easier to maintain, you’ll also find them dotted about the area too.
And, of course, London isn't the only option for making your next buy-to-let investment. Surrey, and Guildford in particular, have great investor potential due to the fact that they have good commuter connections and a range of amenities, giving them plenty of family appeal.
However, Guildford isn’t just for families. The University of Surrey and various educational institutions in the area mean Guildford’s rental stock is in high demand, giving buy-to-let investors peace of mind that the rental market will remain steady for years to come.
There isn’t much large-scale development in this area, which drives increased rental demand for newer properties, although any type of student accommodation will see healthy returns. Property prices in Guildford* are also below the London average, making investments more affordable.
*Based on Foxtons' figures as of 15/11/2018