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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