BTL Investment Central Housing Group

Commuter location yields not always better than in-London yields

New research by lettings management platform Howsy shows which major London commuter hubs make the most attractive potential for buy to let investors.

The platform says that with working from home causing many to look outside of London for a more affordable rental, growing demand for these properties provides an opportunity for buy to let operators.

However, location is essential and Howsy’s research shows that the average rental yield currently sits at just 3.7 per cent across 20 major commuter hubs on the outskirts of London.

That’s lower, in fact, the the current London average of 4.1 per cent.

Harlow tops the table at a yield of 4.6 per cent with Reading close behind on 4.5 per cent.

Luton, Crawley, Slough and Dartford are all at or just above the London average of 4.1 per cent annual yield.

Within London, Tower Hamlets is the highest-performing borough at 4.7 per cent while Newham, Barking and Dagenham, Lambeth, Greenwich, Southwark and Ealing are all between 4.1 and 4.5 per cent.

Commuter Town or London Borough Average Rent (PM) Current Average House Price Average Rental Yield
Tower Hamlets London Borough £1,835 £472,662 4.7%
Harlow Commuter Town £1,006 £262,524 4.6%
Reading Commuter Town £1,043 £276,130 4.5%
Newham London Borough £1,453 £387,326 4.5%
Barking and Dagenham London Borough £1,208 £327,136 4.4%
Lambeth London Borough £1,908 £525,487 4.4%
Greenwich London Borough £1,476 £415,693 4.3%
Luton Commuter Town £809 £229,983 4.2%
Crawley Commuter Town £1,004 £285,725 4.2%
Southwark London Borough £1,718 £488,610 4.2%
Slough Commuter Town £1,016 £296,738 4.1%
Dartford Commuter Town £1,000 £292,213 4.1%
Ealing London Borough £1,569 £454,027 4.1%
Bexley London Borough £1,092 £331,679 4.0%
Brent London Borough £1,502 £446,966 4.0%
Enfield London Borough £1,292 £386,000 4.0%
Havering London Borough £1,169 £352,951 4.0%
Rushmoor Commuter Town £891 £270,423 4.0%
Merton London Borough £1,640 £509,252 3.9%
Watford Commuter Town £1,087 £334,610 3.9%
Croydon London Borough £1,140 £358,356 3.8%
Hounslow London Borough £1,352 £423,042 3.8%
Islington London Borough £2,003 £632,270 3.8%
Redbridge London Borough £1,311 £418,473 3.8%
Wandsworth London Borough £1,958 £624,858 3.8%
Harrow London Borough £1,387 £454,716 3.7%
Lewisham London Borough £1,316 £424,233 3.7%
Sutton London Borough £1,151 £377,458 3.7%
Waltham Forest London Borough £1,352 £437,153 3.7%
Braintree Commuter Town £837 £272,852 3.7%
Guildford Commuter Town £1,415 £461,574 3.7%
Stevenage Commuter Town £885 £289,009 3.7%
Southend Commuter Town £873 £288,327 3.6%
Bromley London Borough £1,307 £430,033 3.6%
Maidstone Commuter Town £875 £293,072 3.6%
Chelmsford Commuter Town £979 £330,064 3.6%
Bracknell Commuter Town £1,024 £345,763 3.6%
Hackney London Borough £1,842 £638,683 3.5%
Haringey London Borough £1,669 £565,343 3.5%
Richmond upon Thames London Borough £1,835 £633,481 3.5%
Barnet London Borough £1,499 £532,569 3.4%
City of London London Borough £2,274 £792,583 3.4%
Hammersmith and Fulham London Borough £2,117 £747,174 3.4%
Hillingdon London Borough £1,200 £417,977 3.4%
Westminster London Borough £3,046 £1,085,013 3.4%
Gravesham Commuter Town £903 £321,057 3.4%
Brentwood Commuter Town £1,154 £430,739 3.2%
Tunbridge Wells Commuter Town £1,122 £421,075 3.2%
Bishop’s Stortford Commuter Town £1,045 £396,304 3.2%
Camden London Borough £2,302 £881,096 3.1%
Kingston upon Thames London Borough £1,306 £506,000 3.1%
Wycombe Commuter Town £1,020 £410,432 3.0%
Kensington and Chelsea London Borough £3,023 £1,396,102 2.6%
London London £1,644 £485,794 4.1%
United Kingdom UK £959 £231,855 5.0%
London Commuter Belt Average Commuter Belt £999 £325,431 3.7%
Average rent sourced from Gov.uk
Average house price sourced from Gov.uk
Commuter Town or London Borough Average Rent (PM) Current Average House Price Average Rental Yield
Tower Hamlets London Borough £1,835 £472,662 4.7%
Harlow Commuter Town £1,006 £262,524 4.6%
Reading Commuter Town £1,043 £276,130 4.5%
Newham London Borough £1,453 £387,326 4.5%
Barking and Dagenham London Borough £1,208 £327,136 4.4%
Lambeth London Borough £1,908 £525,487 4.4%
Greenwich London Borough £1,476 £415,693 4.3%
Luton Commuter Town £809 £229,983 4.2%
Crawley Commuter Town £1,004 £285,725 4.2%
Southwark London Borough £1,718 £488,610 4.2%
Slough Commuter Town £1,016 £296,738 4.1%
Dartford Commuter Town £1,000 £292,213 4.1%
Ealing London Borough £1,569 £454,027 4.1%
Bexley London Borough £1,092 £331,679 4.0%
Brent London Borough £1,502 £446,966 4.0%
Enfield London Borough £1,292 £386,000 4.0%
Havering London Borough £1,169 £352,951 4.0%
Rushmoor Commuter Town £891 £270,423 4.0%
Merton London Borough £1,640 £509,252 3.9%
Watford Commuter Town £1,087 £334,610 3.9%
Croydon London Borough £1,140 £358,356 3.8%
Hounslow London Borough £1,352 £423,042 3.8%
Islington London Borough £2,003 £632,270 3.8%
Redbridge London Borough £1,311 £418,473 3.8%
Wandsworth London Borough £1,958 £624,858 3.8%
Harrow London Borough £1,387 £454,716 3.7%
Lewisham London Borough £1,316 £424,233 3.7%
Sutton London Borough £1,151 £377,458 3.7%
Waltham Forest London Borough £1,352 £437,153 3.7%
Braintree Commuter Town £837 £272,852 3.7%
Guildford Commuter Town £1,415 £461,574 3.7%
Stevenage Commuter Town £885 £289,009 3.7%
Southend Commuter Town £873 £288,327 3.6%
Bromley London Borough £1,307 £430,033 3.6%
Maidstone Commuter Town £875 £293,072 3.6%
Chelmsford Commuter Town £979 £330,064 3.6%
Bracknell Commuter Town £1,024 £345,763 3.6%
Hackney London Borough £1,842 £638,683 3.5%
Haringey London Borough £1,669 £565,343 3.5%
Richmond upon Thames London Borough £1,835 £633,481 3.5%
Barnet London Borough £1,499 £532,569 3.4%
City of London London Borough £2,274 £792,583 3.4%
Hammersmith and Fulham London Borough £2,117 £747,174 3.4%
Hillingdon London Borough £1,200 £417,977 3.4%
Westminster London Borough £3,046 £1,085,013 3.4%
Gravesham Commuter Town £903 £321,057 3.4%
Brentwood Commuter Town £1,154 £430,739 3.2%
Tunbridge Wells Commuter Town £1,122 £421,075 3.2%
Bishop’s Stortford Commuter Town £1,045 £396,304 3.2%
Camden London Borough £2,302 £881,096 3.1%
Kingston upon Thames London Borough £1,306 £506,000 3.1%
Wycombe Commuter Town £1,020 £410,432 3.0%
Kensington and Chelsea London Borough £3,023 £1,396,102 2.6%
London London £1,644 £485,794 4.1%
United Kingdom UK £959 £231,855 5.0%
London Commuter Belt Average Commuter Belt £999 £325,431 3.7%
Average rent sourced from Gov.uk
Average house price sourced from Gov.uk

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