With short-let rentals in London on the rise, increasing numbers of tourists visiting the capital and a depletion in the short-let rental stock (due to owners shifting their attention to longer-term rentals), the future is bright. Yet, for investors looking to invest in property in London with the aim of achieving a positive short-let income stream, where do they put their money, within the 33 boroughs of greater London?
The Best Short-Let Property Investments in London
A question we often get asked by our short-let management clients from across the globe is:
‘Where are the current hotspots in London’s short-let property investment scene?’
As we monitor London’s short-let property scene on a daily basis we are well positioned to answer this question and one of the reasons why we created The D’Rews London Short-Let Property Playbook. It covers the bases for investors looking to gain a good helicopter view of all 33 boroughs of London so that they can assess various short-let property investment opportunities for themselves. It’s a great little playbook with lots of valuable insights.
With The Playbook, we also provide our Top 3 spots for Where We’d Invest!
Includes Market Intelligence on of London
We have our ear to the ground across London. Whether there’re a new property developments, infrastructure projects, or improvements to an area, we keep our investors informed. This could drastically affect the investment potential on any given town within the 33 boroughs of London. We keep in-the-know so that we can inform our clients of the best short-let property investments in London.
If you would like to discuss further, please do get in touch with our short-let management team of experts on 0044 (0)203 488 4135.
All of London
If you are unfamiliar with the boroughs across London you can get an idea from the map but there’s a comprehensive index for the 33 boroughs of London directly below this section.
Starting with the City of London (01) which is in the centre of London.
The numbering system essentially works its way outwards in spirals to the outer areas of London that includes;
- Barnet (31) in the north,
- Hillingdon (33) in the west,
- Croydon (19) in the south and
- Bexley (23) in the east.
We have written a summary for each London borough below—clearly, all the juicy data, analysis, and insights about Where We’d Invest Our Money are included exclusively in The Playbook but you’ll still gain a decent overview of London here.
Just so you know, the summaries listed below are included in the introductory paragraph for each borough within The Playbook.
Index for the 33 Boroughs of London
Simply click on an area of London from the list below:
If you would like to discuss any aspect of short-let property management here in London, or you are interested in investing in an area of London to gain returns on the short-let rental market, please get in touch with our short-let management team of experts 0044 (0)203 488 4135.
01. City of London
The City of London is the original centre of London and the heart of the financial district. This is the smallest area in London and the smallest city in England too! With clear limitations on space—and high demand—price helps manage those competing factors. There is global demand for accommodation here in the City of London and the majority of stock is apartments. The short-let market is very strong with well-off finance workers needing temporary high-quality accommodation. This sort of demand can only be good for property appreciation prospects. The current yields have been hit, but they are still far bigger here than an AST (Assured Shorthold Tenancy) is likely to offer.
If you would like to discuss our short-let management services for the City of London, please do get in touch on 0044 (0)203 488 4135.
02. City of Westminster
We have been managing short-let property in the City of Westminster since we started out in 2013. In terms of short-let management—especially for the holiday market visiting London—this area has consistently proved to be amongst the most robust in London. There is also a huge range of property prices in Queens Park which can be less than half that of West End’s £1.7m (2bed) in Covent Garden. Occupancy rates are generally around the 60% mark throughout the central areas of Paddington, Marylebone, and Covent Garden.
With such a wide range of prices and yields in such a small area, why not commission a tailor-made property report? Chat to our friendly team about our short-let management services for Westminster by simply getting in touch on 0044 (0)203 488 4135. (2bed)
03. Kensington & Chelsea
Kensington and Chelsea is home to some of the most expensive properties on the planet so one mightn’t expect to receive much in the way yields. However, this is the part of London where short-let management rental values mirror purchasing prices. In the traditional London rental market, it would be unheard of to get a yield of above 2-3%. But, if you’re thinking of buying a second home here, short letting in the right place at 4-6% could be an ideal way to offset your mortgage.
We are happy to talk through our short-let management services for Kensington and Chelsea, so please do get in touch on 0044 (0)203 488 4135.
7 Pro Tips to Your Short-Let Profits
04. Hammersmith & Fulham
Hammersmith and Fulham is one of the more expensive boroughs in London but there are still opportunities for the open-minded short-let property investor. The development of the BBC building in Shepherd’s Bush has lifted short-let prices, as has the growth of Westfield shopping centre which is the largest of its kind in Europe. On the periphery of all this development you have the less fashionable East Acton and then south to the very fashionable Fulham. Your capital appreciation has good prospects with such economic activity and as short-let property managers in this area of London, we know that you’ll receive consistent short-let returns.
If you’re looking at investing in Hammersmith and Fulham or require a short-let management service to maximise your returns for an existing short-let property, please do get in touch on 0044 (0)203 488 4135.
Wandsworth in South West London is a highly desirable location and generally attracts young professionals and families. The area stretches from Putney and Battersea on the river Thames down through Clapham Junction and Balham to Tooting in south London. Around the iconic Battersea Power Station there’s a raft of new developments, however, many of them forbid short-let rentals. If we were managing a 2-bed property here, we’d be aiming for a short-let yield of 5%.
If you like the sound of investing in Wandsworth, there are some areas where bargains can be had, such as Tooting. We are always happy to discuss our short-let management services for this area of London too so please do get in touch on 0044 (0)203 488 4135.
Lambeth is an inner-city urban area of London with the greenery of Clapham Common in the middle. It is certainly an area of high demand in the short-let market. As you’d expect the Zone 1 areas of Kennington and Oval have high property prices, but a short-let property will still outperform traditional rentals by around 1%.
That being said, better yields are certainly achievable in the Clapham, Brixton and Streatham triumvirate. If you’d like to talk about how we’d manage your short-let property in Lambeth, please do get in touch on 0044 (0)203 488 4135.
Southwark (pronounced Sutha-rk), in south east central London, runs along the Thames from Borough to Bermondsey and Rotherhithe down through Peckham to Dulwich. With Southwark Cathedral, South Bank, the iconic Tower Bridge, and London Bridge in the area, the average price is skewed upwards. Further south they are more affordable, but not so popular. It is important to be able to evaluate your short-let yields here.
If you’d like to discuss investment potential or managing a short-let property in Southwark, please do get in touch on 0044 (0)203 488 4135.
08. Tower Hamlets
Tower Hamlets takes in the other centre of London finance, Canary Wharf. Where you could charge upwards of £180 per night for a two-bed short-let rental property. There are both prime riverside properties and urban inner-city areas too. You have areas of Whitechapel and Bethnal Green with great demand from the Indian sub-continent. There’s also overflow of short-let demand from the city’s neighbouring finance district too. Tower Hamlets has some very cool areas combined with very corporate areas which brings with it a unique vibrancy.
If you’d like to discuss our short-let management services for an existing property in Tower Hamlets, or you’re on the verge of investing, please do get in touch on 0044 (0)203 488 4135.
The southern part of the borough of Hackney is Hoxton and Shoreditch which are considered to be East London. They are also considered to be some of the coolest and exciting places to live and work. There are countless tech startups in Old Street and this drives a premium for property prices and brings high demand for short-let accommodation (70%+) in the immediate area. Further north in Hackney and Stoke Newington (considered North London) short-let prices look less attractive.
If you’re interested in Hackney and would like to discuss investing or short-let management services for an existing short-let property, please do get in touch on 0044 (0)203 488 4135.
Islington is a narrow residential district of Central London. Essex Road, Upper St and Liverpool Road run south to north through some highly desirable areas. From Clerkenwell and Angel up to Highbury and Holloway in the north, there’s vibrant communities and great properties. You’ll get more for your money the further north you go.
AST (Assured Shorthold Tenancy) rental demand here is high, so there’s not much to choose between that and short-lets in the northern parts of the borough. That being said, there’s still money to be made on the short-let investment front so please do get in touch on 0044 (0)203 488 4135 and we can discuss the latest goings on in Islington.
Camden is a central borough of London that takes in some of the most exclusive real estate. It stretches from the heart of the West End in Covent Garden up to the world-famous cultural hotspot Camden Town. To add to this, there’s the impossibly perfect Primrose Hill and Hampstead Heath, where you’re in popstar and A-list actor country. This is one of the most exclusive areas in the world and space is at a premium. Demand for accommodation is also at a premium. You will often get well over 70% occupancy here, with the best properties pushing 90% and the larger yields that brings.
If you’d like to discuss buying or us managing your short-let property in Camden, please do get in touch on 0044 (0)203 488 4135.
Brent is an area famous for football. With Wembley Stadium, the home of English Football, being a central attraction. There is plenty to attract the short-let investor. Kensal Green and Kilburn are semi-suburban areas that have seen many new developments. Both areas are likely to outperform an AST (Assured Shorthold Tenancy) by around 2% so they would be decent places to investigate.
If you would our assistance researching potential properties in Brent or managing an existing property of yours, please do get in touch on 0044 (0)203 488 4135.
Ealing borough is mainly suburban from Acton out to fashionable Ealing and Northolt where there’s more greenery. Known as the ‘Queen of the Suburbs’ due to the parks and tree-lined streets tells you all you need to know about the suburban nature of this quite beautiful area. It’s an area where your short-let property investment could make an additional £10-£13k per annum for a short-let 2 bed in the right place. Ealing generally runs along the Central Line so its reasonably accessible. The area will be transformed by Crossrail in 2021. New stations in Acton and Ealing will likely see property prices push upwards making investments now more attractive.
To discuss the latest market intelligence for the area of Ealing, please do get in touch with our short-let management team, based here in London, on 0044 (0)203 488 4135.
Hounslow stretches out to west London and Heathrow airport from the extremely affluent Chiswick in the east. In between there is an inordinate amount of corporate headquarters in Brentford and Hounslow, and the airport’s surrounding areas. The rapid road and train links through this area means some of the biggest corporations in the world call Hounslow home. BskyB, Cisco, GlaxoSmithKline all need accommodation for short-term workers too. The flexibility in short letting is what attracts high-level business workers to drive the demand in this area.
To discuss the latest short-let property investment opportunities in Hounslow, west London, or to speak to our short-let management team, please get in touch on 0044 (0)203 488 4135.
15. Richmond Upon Thames
Richmond-upon-Thames is one of the few boroughs in London that is on both sides of the Thames. Approximately 50% of the area is beautiful parkland, so you are rarely far from some natural greenery. Much of that natural beauty is south of the river Thames. Think of places like Richmond Park, Kew Gardens and Bushy Park. This wealth of nature drives a premium in the London property market. North of the river tends to see lower property prices and it is here where we recommend you look for good property investment yields. The occupancy rates average around the mid 60%, but the area has great cache with tourists/business travellers which drives the short-let market.
If you would like to discuss our short-let management services for this particularly beautiful area of London, please do get in touch with our team on 0044 (0)203 488 4135.
16. Kingston Upon Thames
Kingston upon Thames is a lovely area in south west London. It enjoys a beautiful location on the waterfront and with that comes countless water sport activities and riverside entertainment. Leafy river life is a massive draw for short-let guests whether they are tourists or business travellers. This is borne out by the fact that a short-let property investment here will gain you at least 2% over and above an AST (Assured Shorthold Tenancy) let. Kingston upon Thames feels far removed from the hustle of central London but it’s actually only 20-30 mins away. You can easily access New Malden (or ‘Little Korea’ as it’s known due to the 10K+ expats) and you’ll find great rail links to Wimbledon and Waterloo.
If a short-let property investment in Kingston Upon Thames is something that you are considering, please get in touch with our short-let management team on 0044 (0)203 488 4135.
Merton is an area of south west London that is part delightfully leafy and part large shopping centre suburban area. Both Mitcham and Colliers Wood have seen significant investment over the past few years with new developments and retail parks appearing. The growing industry in Mitcham has been attracting an increasing number of business travellers. Then you have Wimbledon which itself has two sides, the lovely village at the top of the hill and the more retail-oriented area close to the train station. The price of property here rises quite literally as you go up the hill.
Merton has excellent rail connections into Waterloo and benefits from an abundance of park space such as Wimbledon Park, Wimbledon Common, and Morden Hall Park on the River Wandle. To discuss short-let property investment and management opportunities in Merton, simply get in touch with our friendly team on 0044 (0)203 488 4135.
Sutton is a borough full of sleepy villages and lovely rolling countryside. It really doesn’t feel like a London borough! It is far from sleepy for the right location in the short-let property investment market. As with a lot of the more rural areas of London, there’s a big variation in yields. Sutton and Beddington are where we would advise taking an AST (Assured Shorthold Tenancy) due to the minimal difference between short and long let yield potential.
The two main towns are Carshalton and Sutton; both are around 25 mins by train to Victoria. This is ideal commuter belt with very low prices that can’t be matched in more central areas. A reasonably short train time makes it an attractive option for those commuting into central London. Our short-let property management team are always happy to discuss short-let opportunities in Sutton, so please get in touch with our friendly team on 0044 (0)203 488 4135.
Croydon is one of the most southerly London boroughs and is dominated by its eponymous main town as a transport and entertainment hub. Further south towards Coulsdon the area has a Surrey vibe; in that it’s leafy and suburban.
Outside of Croydon short let performance is only marginally better than an AST (Assured Shorthold Tenancy) let. To discuss short-let property opportunities in Croydon, please get in touch with our short-let management team today on 0044 (0)203 488 4135.
Bromley is a south-eastern borough and it’s also the largest borough in London. There’s plenty of greenbelt space here yet it’s still close enough to central London to be known as great commuter country. It’s a place that competes directly with neighbouring Croydon for the commuter pound and is similar in many aspects.
Places like Beckenham and Bromley are just 20 mins to Victoria. You’ll get great value for money if you are looking to add to your property investment portfolio here. Beckenham aside, your short-let would be more likely to make 2.5% above an AST. If you would like to discuss our short-let property management services for Bromley, please get in touch with our short-let management team today on 0044 (0)203 488 4135.
Lewisham is an extremely interesting area in terms of short-let property investment. Decent short-term property yields can be found across the borough. Whilst they may not be setting the world alight, with the right property here you could easily trump an AST let by 2%. The Borough ranges from the exclusive open space of Blackheath in the north, down through the urban and well-connected Lewisham, and further south there’s Catford; an area which is earmarked for some extensive regeneration projects. This bodes well for capital appreciation in the area.
If you would like to discuss how our short-let management team would maximise your returns for a property in Lewisham, please get in touch today on 0044 (0)203 488 4135.
Greenwich, and this area of south east central London has a great deal of river frontage. Which is a huge attraction in the short-let property market. It also has considerable tourist attractions in Greenwich itself with the Observatory, Cutty Sark and the O2 arena which put this area on the global travel map. These attractions add a great deal of weight to the tourist short-let market. From our experience it also attracts businesses exhibiting at the Excel across the river. Short-let yields are healthy across the borough of Greenwich at around the 6% mark.
Please get in touch with our short-let management team to discuss a range of short-let investment and management options in Greenwich.
Bexley is a relatively unfashionable eastern borough of London which has a Kent postcode. This means it offers some of the best value properties of all the boroughs. The figures for properties here are from a relatively small sample size both for purchasing and renting, which indicates a slow market. The property prices are the lowest in London with Erith at just £235k, so there are certainly opportunities for investing in a nice, well-connected property here. Many of the two bed properties on offer here are houses rather than the flats of more central boroughs.
If Bexley is somewhere that you are considering investing, please get in touch with our short-let management team to discuss how we can help.
Havering is a mainly suburban borough. There are three main population hubs here with Hornchurch being the area’s cultural centre, whilst Romford is the place for entertainment facilities. Then there’s Upminster which is located at the eastern extremity of the District Line. Property prices are at the lower end of the London spectrum which provides impressive short-let property yields across the board. So, in terms of short-let property investment potential and yields, Havering is hot, but it is important to pick the right place as the returns vary wildly, from 6-8%.
If you’d like to discuss some of the right spots in Havering with our short-let management team, please do get in touch.
25. Barking & Dagenham
Barking and Dagenham is a real mix of land use. You have industrial areas in the south by the Thames gateway and suburban areas in Chadwell Heath, to the north. Dagenham—famous for the Ford motor plant—is an area designated for regeneration. The property prices are some of the lowest in London which means short-let property yields are generally high even if demand isn’t so hot. Along Barking riverside and Dagenham docks there are over 10,000 new properties newly completed or in development.
If Barking and Dagenham is somewhere that you are considering investing, please get in touch with our short-let management team today on 0044 (0)203 488 4135.
Redbridge stretches to the far north east of London and is a mix of urban areas, around Ilford, and beautiful leafy suburbs in Wanstead. The property prices here roughly correlate to the number of leaves! Higher prices if it’s a leafy area and lower for urban. However, the opposite is true in terms of short-let property yields. If you are looking to use your property as a second home, you’d likely gravitate towards Wanstead. Ilford if purely for investment.
If you’d like to discuss the potential short-let property returns that you’d achieve for a property in Redbridge, please contact our short-let management team of experts today on 0044 (0)203 488 4135.
Newham offers some excellent short-let yield potential. Anywhere from 6-8%. Newham has seen enormous regeneration around Stratford, which was home to the Olympics in 2012. There’s also £3.7billion earmarked to develop the area around the Excel Exhibition Centre & Canning Town in the South. Newham is home to London’s only inner-city airport which drives the economy here and attracts overseas short stay visitors. Retail visitors are drawn to Newham, in particular Stratford, with Westfield boasting of 300 shops and bucking the trend of the move away from mall shopping.
If the short-let property investment scene in Newham is something that you’d like to learn more about, please get in touch with our short-let management team today on 0044 (0)203 488 4135.
28. Waltham Forest
Waltham Forest is a large area of north east London which has very diverse housing stock from the urban Leyton in the south, to leafy Chingford in the north. Unlike most of central London, average property prices have a smaller spread which ticks the box for an investment only area. However, there are premium pockets, like Walthamstow Village where you could be paying £70k above the area’s average 2 bed price. Short-yields can range from 5%-7% in Waltham Forest.
Our short-let management team will be delighted to discuss short-let property management and short-let investment opportunities here in Waltham Forest. Simply get in touch with our short-let management team today on 0044 (0)203 488 4135.
Haringey is an area of London with stark contrasts with the affluent areas of Highgate, Crouch End, and Muswell Hill to the west and the more urban areas situated to the east of the borough that include Wood Green, and Tottenham Hale. It is the eastern side which attracts the short-let investor. Property is priced at the lower end of the market. Returns on investments are likely to be much healthier, with an 8-9% yield possible, which is around double that of an AST (Assured Shorthold Tenancy) let.
To discuss short-let property investment opportunities in Haringey, please get in touch with our short-let management team today.
This most northerly part of London offers a wide range of hidden investment gems. From the sleepy village feel of Winchmore Hill to the urban environs of Edmonton, from suburban Southgate to the shopping and entertainment centre of Enfield. On top of this there are some quick train connections and the Northern Line into central London takes around 25 mins. Winchmore Hill is an area where we’ve experienced great success with short-let properties. It has a village feel yet its only 25 mins from the city’s financial district and attracts guests who have family in the area.
Our short-let management team will be delighted to talk through a range of property investment opportunities and the kinds of returns we’d expect to achieve. Simply get in touch with our short-let management team today.
This northern London borough is well connected to the centre via the Northern Line tube branches. It is a fully suburban area with large areas of greenbelt land which makes this attractive for commuters. There will be one of the largest regeneration projects in Europe taking place named Brent Cross Cricklewood, with extended shopping centres and infrastructure improvements. This includes almost 7,000 new homes. Property prices here are on the lower side, but so are the yields. It doesn’t seem to have a great appeal to the short-let market. However, with all the regeneration taking place the area could be a shrewd place to invest in the long run.
If you’d like to discuss short-let property and property investment options in Barnet with our team here in London, please do get in touch with our short-let management team today.
Harrow is a north westerly district of London which is generally suburban. Its main travel artery is the Metropolitan and Jubilee Line that heads south through Wembley into Baker Street in just 30 mins. It is home to some big multi-national employers such as Kodak and Ladbrokes. It’s also the location of some great educational institutions such as the world-famous Harrow School for boys. These factors attract wealthy families and business people for short to medium stays.
If you’d like to discuss property opportunities here in Harrow, please get in touch with our short-let management team on 0044 (0)203 488 4135.
Hillingdon is an area of western London dominated by exceptional transport links with Heathrow to the south, the M25 to the west and the A40 to the north. It will also have Crossrail stations across the borough connecting it directly to Heathrow and central London. Hillingdon is a place where property prices are considerably lower than the London average. It’s home to some established business centres, which drives demand in the short-let rental market. These excellent transport links, and the corresponding busyness of the area, are what make Hillingdon such an attractive area for property investors. It is one of London’s least densely populated boroughs with a high percentage of owner occupiers compared to the rest of London which indicates a general sense of financial security.
If you are interested in exploring the short-let property market in Hillingdon, please get in touch with our short-let management team today on 0044 (0)203 488 4135.