Five buy-to-let tips when investing in London property

Stamp duty rises and Brexit fears may have caused some prospective buyers to hesitate but figures just released by the Office for National Statistics (ONS) suggest investors are still keen to purchase London property.

The ONS has reported an average 12.1% rise in the capital’s property prices for the year upto August 2016. Rents have also shown a steady increase (with an 8.4% rise over last year). When set against interest rates so low they are almost non-existent, London buy-to-lets continue to provide an attractive opportunity for investors.

However, with a city as large and diverse as London, it can be hard to know where to invest. It takes careful research, local knowledge and more than a touch of luck to uncover a really good buy to let property: one that will not only provide a healthy rental income, but also has potential to grow in value.

If you are thinking about buying to let, there are five key points to keep in mind:

1. Prime London purchases: If you are buying in Zone 1, it’s unrealistic to expect the rental income to cover your mortgage. In order to see real gains you should be prepared to hold on to the property for several years.

2. Avoiding voids: ‘Void’ months – where the property is standing empty – can eat into potential profit, so follow your agent’s advice when it comes to setting an appropriate rent for the property.

3. Love the location: Select the right location and tenants will follow. Consider transport links, good local schools and proximity to work hubs. Being close to great bars, restaurants and shops will also increase your property’s appeal.

4. Flexible furnishing: Strategically placed items of furniture can help to show off a property to its best advantage, but be prepared to remove these pieces if your new tenants want to use their own furniture.

5. Focus on the future: Look at local regeneration projects and local authority area plans that could improve the value of your property in time. However, be careful that you don’t end up with a property that overlooks a building site.

Lurot Brand has been advising investors of all sizes for over forty years. Our track record of running successful sales and lettings operations means we are exceptionally well placed to advise on buy-to-let investment, particularly if you are thinking of buying a London mews property . Call us today to view stunning investment properties (a favourite of ours is Leinster mews) in some of the capital’s most sought-after postcode areas.