Buy-to-Let Properties for Sale in London

Buying property in London is widely considered a good investment. There are some disadvantages to investing in London property, including the very high average price that an investor will have to pay to acquire property in the city. However, for many investors, the advantages outweigh the high initial cost. Market stability, strong demand, and high rental income make up some of these benefits.

London property is generally expensive, so many investors opt to use a buy-to-let mortgage to start investing. However, this is not a necessity, and London attracts cash buyers.

When applying for a buy-to-let mortgage, you will generally be asked for a higher deposit than ordinary residential mortgages require – usually around 25% of the property’s value.

The minimum annual salary required for a buy-to-let mortgage will vary by lender, but many require a minimum annual income of around £25,000. However, some lenders have lower minimums, so it could be worth shopping around if you don’t meet this requirement.

Yes, the income you receive as rent is taxable, and you need to declare this through your Self-Assessment tax return. Expenses such as council tax, insurance, general repairs, and maintenance can be deducted as ‘allowable expenses’.

You will also pay taxes when you buy or sell buy-to-let property, including stamp duty and capital gains tax.

Buy-to-let investors can look at rental yields to see if a rental property is profitable enough. This is the percentage of return on investment that a property generates through rental income compared to the property’s price. In the UK, a good rental yield is often considered to be between 5-6%, and anything above this is a very good rental yield.

According to Zoopla, the highest-yielding buy-to-let area in London is Barking and Dagenham, where there is an average gross rental yield of 6.22%. The London average is 4.93%, which is lower than the UK average.

It can be harder to find a good yield on London buy-to-let properties for sale as the property prices are generally more expensive, but some more affordable London areas can offer 5-6% rental yields.

The minimum investment needed for buy-to-let properties for sale London-wide will depend on the location and type of property you’re considering.

Central London properties often come with higher price tags. You can often find more affordable investment opportunities in outer boroughs and commuter areas. Entry-level prices for off-plan or studio apartments in select zones may start around £280,000. It isn’t uncommon to see prices exceed £400,000 in prime locations.

Working with an experienced team like RWinvest can help you find the right opportunity to match your budget.