While recent reports have suggested some buy-to-let landlords are looking to sell this year, purchasing a London rental property remains a fantastic option for those looking to make a return on their investment.
As well as receiving consistent passive income from the occupant’s rental payments, landlords will generate capital growth as the property value increases.
At Knightsbridge International Real Estate, we have extensive experience in the buy-to-let sector and cover some of London’s most affluent and sought-after areas. Our coverage includes Knightsbridge, Chelsea, Mayfair and South Kensington – some of the biggest hotspots for premium London property and highly popular with renters.
What are some advantages of buying to let in London?
While the initial investment may seem daunting, the return far outweighs any doubts or fears. Despite the UK’s economic challenges over the last few years, London’s property market has continued to grow, with house prices rising year-on-year.
Receive rental income
London is a wonderful place to live, showcasing the very best of what the UK has to offer. From rich history and culture to exciting new dining and nightlife options, it has everything you need for a well-rounded living experience, so there’s no wonder it’s the capital of the rental market. Renting in London – particularly the luxurious South West areas around Knightsbridge – is highly competitive, and private rental prices increased by 3.6% from 2022 to 2023. The average rental yield in the capital is around 4-6%, which is above the national average, making it an incredibly lucrative option for investors.
Capital growth in London
London’s property market is one of the strongest in the world, with the city regularly receiving outside investment. So, purchasing a property is always a sound financial decision, and an investor’s capital should be protected.
With London’s property value set to steadily increase over the coming years, landlords will also generate capital growth. While landlords receive passive income from their tenants to supplement their finances, their net worth will also significantly increase thanks to London’s booming housing market.
Income security
Renting just one property to a tenant or set of tenants is a great way for a landlord to receive consistent additional income, alongside their salary or pension.
It also allows the landlord to reinvest the additional money, meaning they can expand their property portfolio or take on new revenue-generating ventures.
If you’re interested in purchasing a buy-to-let property in Knightsbridge or the surrounding areas, our expert team is here to help. Get in touch today to find out how we can maximise your investment.
