The London property market stands alone from the rest of the country and for many people, the prices in the English capital makes buying a home an unobtainable dream. However, there is a huge demand for rental accommodation in London, and this means investing in property in the capital is often a very wise decision. There is a need for landlords to do a lot of research before they invest in property but there is enough to suggest that Vauxhall can provide a good return for a landlord or investor.
As of August 2017, a leading online property specialist listed the average value of property in Vauxhall as being £780,487 while the average price paid for Vauxhall property in the past 12 months stands at £683,546. Over the past six months, the average price paid for property in Vauxhall stands at £753,913 and in the past three months, the average price paid for property in Vauxhall stands at £783,430.
Vauxhall property prices are on the up
Taking the figures for the last three months and the past year together, it appears that the average price has risen by £100,000. There are clearly a number of factors to bear in mind, with the massive influence of the aftermath of the Brexit vote still rumbling on this time last year, and outliers can have a big impact in shorter time periods, but there is enough to suggest that Vauxhall is on the up. While some potential investors may be dismayed to learn that property prices are on the up, rising house prices often see rental fees rising too, so there should be scope for a greater rental income each month when investing in an area like Vauxhall.
The average prices and value are slightly ahead of the London average but in comparison to some areas in the wider region, Vauxhall represents value for money for many people. Being located close to the Thames, being within a reasonable walk from Waterloo and having places like the Tate Britain within very easy reach ensures that Vauxhall is an attractive proposition for many people. This is an area that is regarded as being a good transport hub and of course, Vauxhall Bridge ensures people can head to the city quickly on bike or by car. This easy connectivity to a major employment area means that Vauxhall is attractive for property buyers and tenants alike.
Consider rental yields in Vauxhall
Of course, if you are considering buying to let, there is a need to consider the rental yields. A one bedroom property in Vauxhall provides an expected rental yield of 3.78% while a two bedroom property offers an expected rental yield of 3.45%. The expected rental yield from a three bedroom property comes in at 3.52% and a four bedroom property offers an expected rental yield of 3.24%. A five bedroom property in Vauxhall is likely to offer a yield of 2.61%.
These returns will be slightly lower than what some investors are looking for, but there are still many reasons to invest in property in Vauxhall. The returns for one, two and three bedroom properties are appealing enough for some landlords and the area, and the quality of expected tenant, can play a part in making an investment opportunity worthwhile. As this area is an attractive one, it is not unreasonable to assume that property can be let to young professionals and tenants who are expected to pay in full, on time while looking after the property in a reasonable manner. Over time, this can bring about a much more dependable return than an area which offers a better rental yield on paper but may attract more unsuitable tenants.
Your long term aims as a landlord should also be considered, and this is a factor why Vauxhall property is a sound investment. If after letting the property out, you are looking to sell or you want to use the property for your own purposes, the stunning location and convenience of facilities ensures that there is a lot to like about property in this part of London.