Top Property Investments in London: 2024
The London property market remains one of the most attractive investment destinations, with both domestic and international investors continuing to see strong potential. Investment properties in London are not only about value appreciation, but also generating a steady rental yield, which is especially crucial for Buy-to-Let (BTL) investments. With rental growth consistently outperforming other UK cities, London remains a hotspot for property investors in 2024.
If you’re feeling overwhelmed by the vast number of choices, don’t worry—this updated guide will provide an overview of the best property investments in London for 2024, considering both rental yields and capital growth.
East London
Hackney
Average Price:
£630,000
Average Rental Yield:
4.8%
Hackney continues to be one of the most desirable locations for investors in East London. Known for its vibrant culture and proximity to London’s tech hub (Silicon Roundabout), Hackney offers excellent long-term investment prospects.
The borough is undergoing massive regeneration, and with improvements to public transport infrastructure, it’s poised for further property price growth. According to recent data, Hackney has seen a 6.5% increase in property prices in the past year alone.
Barking & Dagenham
Average Price:
£320,000
Average Rental Yield:
5.5%
Barking & Dagenham remains the top contender for high rental yields in London. Situated just 25 minutes from Central London, this area is set to benefit from major investment and regeneration projects.
The Crossrail link is expected to further boost property demand in the region. In 2024, properties in Barking & Dagenham saw a 10% increase in demand, making it one of the best areas for property investors looking for strong returns with a lower entry price.
Ilford
Average Price:
£420,000
Average Rental Yield:
5.6%
Ilford continues to shine as an up-and-coming investment area in East London, now upgraded to a Crossrail hub. The area has experienced an incredible 60% increase in property prices over the past 5 years, with further growth expected due to new developments.
In 2024, Ilford’s average rental yield of 5.6% remains one of the highest in London, making it an attractive location for buy-to-let investments.
Newham
Average Price:
£445,425
Average Rental Yield:
4.9%
Covering the surrounding areas of the Excel Centre and London City Airport, Newham has seen substantial property price increases and higher rental yields than London’s typical average. A large part of this growth is down to Newham’s population having increased by more than 80,000 since 2005.
With Stratford’s Olympic Park and London Stadium within the borough, the 2012 Olympics originally put Newham on the map, and the borough has seen significant growth and regeneration ever since. Newham has also become a cultural hub and new jobs and exciting developments keep coming to the area.
Newham has seen significant growth in property prices (49%) over the last five years, so it’s a great choice for buyers seeking a solid investment with good prospects.
Redbridge
Average Price:
£488,632
Average Rental Yield:
5.0%
Offering families good value homes within an easy commute of central London, Redbridge offers investors a chance to potentially see impressive capital growth, outpacing other boroughs by 17% over the next 5 years.
Already a well-connected commuter area, further rail improvements with the new Elizabeth Line will stretch over 60 miles from Reading and Heathrow to Abbey Wood. This will continue to improve Redbridge and boost the local property market.
As a leafy suburb with almost a quarter covered in award winning parks and forest land and top performing schools, this borough will be very popular with families.
Poplar
Average Price:
£512,000 (up by 15% in the past 5 years)
Average Rental Yield:
4.5%
Served by several Docklands Light Railway stations in Zone 2, Poplar is the more affordable option than neighbouring Canary Wharf. This former victorian slum is getting revamped for the 21st Century with 3000 flats in the pipeline, these will be in new buildings and revived brutalist landmarks with shops, offices and new parks.
With both new builds such as Galliard Homes at Orchard Wharf and period houses available, it has a lot of change on the cards, becoming a magnet for city workers and families alike.
North London
Blackhorse Road
Average Price:
£484,000
Average Rental Yield:
4.3%
An up and coming hotspot for startup entrepreneurs and creatives, this borough is changing swiftly with the creation of 2,500 new homes and a need for workspaces and studios.
The streets around Blackhorse Road Tube station are lined with neat terrace houses, originally built for local factory workers which have increased in value significantly over the last 5 years. It’s well connected with good Zone 3 transport links, the Victoria line (arguably the fastest!) and great schools according to Ofstead reports.
Harringey
Average Price:
£445,240
Average Rental Yield:
4.9%
Immensely popular with London renters in their 20s, Haringey offers desirable areas for families, such as Crouch End and Muswell Hill. Harringey also poses as an attractive option for first time buyers when compared with more expensive neighbouring north London areas.
North/West London
Kilburn
Average Price:
£665,000 - cheaper than surrounding areas of Brondesbury (£823,764) and South Hampstead (£837,797)
Average Rental Yield:
4.6%
Kilburn offers more affordable housing compared to its neighbors like Brondesbury and South Hampstead, yet it still boasts impressive rental yields.
With an ongoing regeneration project worth £600 million, Kilburn is set for future capital growth. Properties here have appreciated by 15% over the last 5 years. For investors, it’s a prime location in North London for solid returns in the coming years.
South London
Merton
Average Price:
£455,000
Average Rental Yield:
6.3%
Merton is an increasingly popular investment area, offering excellent rental returns and a stable property market. The Wimbledon area continues to attract affluent buyers and renters. Merton benefits from strong local amenities, schools, and green spaces.
According to recent market trends, Merton has seen a 7% increase in rental prices over the past year. With an average rental yield of 6.3%, it is certainly a prime location for investment in South London.
Old Kent Rd
Average Price:
£590,000
Average Rental Yield:
6.0%
Old Kent Road is in the middle of a significant regeneration project. This area is rapidly evolving, and its proximity to Zone 1 makes it an attractive option for long-term investors. In 2024, Old Kent Road has seen a marked increase in both demand and rental prices.
The introduction of a new Old Kent Road station (pending approval from Transport for London) is likely to push prices even higher.
West London
Hounslow
Average Price:
£500,000
Average Rental Yield:
4.7%
Hounslow continues to be a strong choice for investors, with its proximity to Heathrow Airport and future redevelopment plans. The area offers large homes for lower prices than its surrounding areas, and Hounslow’s rental yield has remained strong at 4.7% in 2024.
The recent investment in infrastructure and regeneration projects, such as £500 million for civic improvements, is expected to further increase its attractiveness for property buyers.
Greater London
Woking
Average Price:
£316,909
Average Rental Yield:
4.8%
A little further out west but growing in popularity as a commuter option, Woking offers more square feet for your money than other boroughs and has no fewer than eight golf courses to choose between!
Guildford
Average Price:
£354,245
Average Rental Yield:
5.7%
Attracting Londoners for quite some time due to its wealth of green spaces and beautiful homes, Guildord could be the perfect choice for savvy investors.
Sutton
Average Price:
£387,286
Average Rental Yield:
4.4%
Extremely popular area among families looking to upsize away from central London, Sutton offers landlords a healthy return on investment. Already seeing more than £410m invested since 2012, the borough forecasts even more investment and development opportunities, encouraging economic growth as Sutton home to more than 6,800 businesses.
Having the perfect balance of practically being in the countryside and yet close proximity to central London certainly makes this an attractive property investment in London.
Why is London Still a Good Property Investment in 2024?
London remains one of the top places for property investments due to its ongoing infrastructure development, high rental demand, and steady property appreciation. Despite global challenges, London’s property market has demonstrated resilience, continuing to offer promising investment opportunities.
Here are key reasons why property investment in London is still a smart choice for 2024:
- Capital Appreciation: Historical data shows that property values in London continue to rise in the long term. Properties in some of London’s most popular areas have appreciated by 3-6% in the past year.
- Strong Rental Yields: Areas like Barking & Dagenham and Ilford offer rental yields as high as 5.5%, making them attractive locations for investors looking for stable income.
- Ongoing Regeneration Projects: Regeneration projects in areas like Old Kent Road and Hackney are expected to continue driving property prices upwards, creating significant opportunities for investors.
Property Sourcing Services in London
At Pearl Lemon Properties, we specialize in property sourcing in London, helping investors find the best opportunities in both established and up-and-coming areas. Whether you’re looking for investment property for sale in London or want to expand your buy-to-let portfolio, our team of property sourcing experts can help you navigate the market.
Our services include:
- Residential Property Sourcing: Finding your dream home or profitable investment property.
- Commercial Property Sourcing: From office spaces to retail units, we source the best commercial properties for your needs.
- Investment Property Sourcing: Identifying high-potential properties that provide strong returns.
- Property Management Services: Full support for your investments, from tenant sourcing to ongoing property management.
FAQs
Is London still a good place to invest in 2024?
Yes! Despite challenges like Brexit and the pandemic, London’s property market continues to demonstrate resilience, offering solid returns in the form of capital appreciation and rental yields.
What areas in London provide the best rental yields in 2024?
Barking & Dagenham and Ilford continue to offer the highest rental yields, with 5.5% and 5.6% respectively. These areas offer great potential for investors.
How has the property market in London changed in 2024?
The market has continued to grow despite challenges. Investment in regeneration projects and improved infrastructure in areas like Old Kent Road and Hackney have led to increased property demand.
What is the average return on investment for London property in 2024?
Investors are seeing strong returns, with areas like Merton offering up to 6.3% rental yield and substantial long-term capital appreciation.
How can Pearl Lemon Properties help me find the right investment property in London?
We specialize in property sourcing in London, offering expert advice, in-depth market research, and access to exclusive off-market deals to ensure you get the best investment properties.
