Given the demand in the London property market, it is only natural that many people will hold an interest in investing in the market. There is no shortage of options to choose from in London and this is why it is essential that you study specific areas and determine if they are right for you. One of the most important steps you need to undertake when investing in property is to learn about the area, and the E1 postcode area of London offers many attractive features and benefits.

This postcode area of London has a number of famous names within it. Whitechapel, Spitalfields, Shadwell and Stepney all lie within E1 while parts of Aldgate, Bishopsgate, Shoreditch, Globe Town and Mile End can be found in this part of the capital. There is a lot to be said for looking at these specific areas but even a quick look at the E1 postcode area in general provides a good starting point in determining whether this is the right area to invest in.

E1 can offer value for money if you know where to look

As of October 2017, the average value of property in E1 (according to one online property specialist) stands at £593,538 while the average price paid for property in the past 12 months stands at £609,820. This isn’t too far from the London average, which gives you an idea that E1 is a reasonable starting point for investing in the London property market. When you invest in property, price is a factor but you shouldn’t consider the lowest price to be the most important thing because there can be issues and problems associated with a low price. With an average price around the London average, E1 provides a good grounding for investors looking to develop experience and skills in the market.

Over the past 12 months, the average price paid for property in some parts of E1 is as follows:

  • Aldgate – £624,315
  • Mile End – £421,081
  • Shoreditch – £698,192
  • Spitalfields – £691,279
  • Stepney – £419,697
  • Whitechapel – £516,916

This shows that there is a range of variety in the E1 property market so even if you have a budget that is more suited to the lower end of the E1 area; there should be an option that is worth considering.

Consider the rental yield for E1

The price you pay for property is clearly a crucial factor to bear in mind when investing but you should always have a focus on the expected rental yield. A one bedroom property in E1 provides a 4.7% expected rental yield while a two bedroom property should offer a 4.24% expected rental yield. There is a 4.06% expected rental yield on offer for a three bedroom property while a four bedroom property can provide a 4.44% expected rental yield. Anyone looking to invest in a five bedroom property in E1 should expect a rental yield of 4.27%.

When you consider that most investment specialists recommend a return of around 4% as the starting point for looking at an investment, you will find that E1 provides a suitable return. There can also be long term benefits of owning property in this part of London but even if you are solely focused on the short term rental income, there is an incentive to invest in E1.

If you are more focused on the monthly rental income you should expect in this area, a one bedroom property carries an average rent of £1,830 per calendar month (PCM). The PCM for a two bedroom property is £2,501 and for a three bedroom property, you can expect an average rent of £2,938. The average rent per calendar month for a four bedroom property is £3,004 and with a five bedroom property, the average rent PCM is £3,373.

The level of demand on offer, and the expected returns means that the E1 postcode area should be considered a suitable option for anyone looking to invest.