For those looking to make money from property, there are few markets hotter than London. As outlined by the Independent, rents average out at £2,034 per month and, given the lack of housing, new tenants are easy to find. With a modernising property market meaning that the internet has a vital role to play in marketing new lettings, there has scarcely been a better time to get involved. However, it’s crucial to make a few checks before diving in.
The Drainage Question
Not all areas of London will bring in the same benefits as others, and one of the major issues that property buyers across the city should bear in mind is drainage. London is threatened by global climate change, making drainage a major factor, and the Victorian sewers of the city are straining under the weight of its population. The Islington concrete-berg is a noted example of this. Make sure your property returns good results on surveys, and if you decide to plough ahead in an area where drainage could be an issue, be aware of your options. Industry insiders including EasyMerchant have noted that modern plastics and membranes can help the foundations of a property to absorb some effects.
The physical properties of your chosen area aside, it’s also important to consider the house prices, rent and likely tenants from that area. Brexit has hit certain areas of the city worse than others. Westminster has, predictably, received the biggest hits; but other areas, like Camden, have experienced similar drops, despite not being as attractive. Conversely, areas like Ealing and Newham have experienced huge price increases. Look at crime, too; areas like Lambeth and Southwark typically have higher crime rates, and you may attract lower rent as a result.
Keeping up Maintenance
A buy to let property is not free income. According to The Telegraph, landlords can expect to shell out £8,359 per year on average with maintenance. This is either through insurance or through cash reserves. Maintenance is the key with a property – it will keep you up to date and able to demand premium rents, while also keeping your property up to date and in line with safety regulations.
London is a competitive property market and purchasing a property within it is likely to net you a decent income. Don’t take it as free money – there are a handful of important considerations to make before diving in. Above all else, physical maintenance is key.