Recommend areas for BTL in London

[Mollyeyes]

Hello

What areas would you invest to buy 1 or 2 bed flat to let out? Looking for longer term.

Thank you

Definitely don't buy a one bed unless it's prime central London. Two beds - yields are better outside of London.

How much have you got to spend? Battersea and areas around it are undergoing a lot of development and the northern line extension is being built, but new flats around there will be £££. Otherwise areas around the further out crossrail stations still offer some good value....

But overall it's a funny time to invest in London, hard to tell the long term effects of covid for instance and more people working from home/fewer commuting to central London plus Brexit impact - do make sure you do your sums on the short term/medium term yields before putting all your capital/eggs in one basket (sorry if that's teaching you to suck eggs but BTL is so often recommended to inexperienced investors and it really isn't the simple proposition it was a few years ago for sure)

Does it have to be London?
How close to your home are you looking?
Are you going to manage it yourself or a letting agent?
Anything without outside space is not selling well currently for obvious reasons - cheaper to buy but harder to rent and resell
How long are you looking to gave it for?
Have you worked out short/long term returns including fees/tax etc?
Are you looking to rent to social/private/student?

I have been a landlord for 13 years and it's getting more and more difficult
Can be worthwhile but there's a lot to consider!

Would you consider areas outside of London? Much cheaper property prices and rental yields in Manchester. Manchester also has a massive student population (over 100,000) and a huge under supply of housing compared to its ever increasing population. London has pretty much maxed out its potential and you'll get much better returns up north.

*and better rental yields

Thank you everyone. I would like it to be in or near London to maintain ourselves, was thinking of a 1bed for about 350k as doubt can get 2 bed for this price. Something with some outdoor space. What about balcony ?

@Mollyeyes

Thank you everyone. I would like it to be in or near London to maintain ourselves, was thinking of a 1bed for about 350k as doubt can get 2 bed for this price. Something with some outdoor space. What about balcony ?

Better than nothing, but the issue is most people won’t want to stay in a one bed for long and you will therefore have turnover, with void periods, agent fees, need to redecorate, liability for council tax etc. The ideal is to find a good tenant who stays for years and that could be difficult with a one bed. You could post on Landlordzone forum though, people there are experienced landlords.

Great areas are zone 3! Depends how much you have to spend but Streatham, tooting and Earlsfield all great buys in 1/2 beds.