According to Westminster City Council, Westminster has the most significant private rented sector in the UK. The estimated 52,700 properties account for 43% of all housing in the area.
The City of Westminster has some of the highest rents of any London borough. If you look at London City Hall’s London Rents Map, the Westminster median rent in the past 12 months for a 2-bedroom rental is £2925, nearly double the London median of £1500. In Mayfair, this figure jumps to £9425. However, rental demand remains high as affluent professionals are drawn to the area.
As per the 2011 census, Westminster has an ethnically diverse professional population. There are plenty of job opportunities for high-income professionals. Many corporations have stationed their global or Europe headquarters in the City of Westminster, constantly luring new workers into the rental market. Those who rent are more likely to skew younger than the overall population of Westminster and inhabit childless households.
Apart from professionals, buy-to-let property investors may also consider targeting affluent student renters, as four of the top ten UK universities are situated in London, according to the University of Cambridge.
Due to excessive property prices, the rental yields in London are less than the UK average, coming in at 4.1%. The City of Westminster paints an even worse picture as one of the UK areas with the worst performing gross rental yields, yielding on average just 3.63% as per Zoopla.
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