Westminster Buy-to-Let Guide

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.

Learn more about buy-to-let and how it works here!

Average Property Prices in Mayfair

The average property price in Mayfair is £8,998,510.

Average Rental Yield in Mayfair

The average rental yield in Mayfair is 1.11%

Average Property Prices in Lisson Grove

The average property price in Lisson Grove is £1,283,87.

Average Rental Yield in Lisson Grove

The average rental yield in Lisson Grove is 5.11%

(Averages house prices taken from Zoopla, rental yield estimate calculated with figures from home.co.uk, housesforsaletorent.co.uk)

When deciding on the perfect buy-to-let location for investors, rental yield and property prices can only make up one part of the story. 

While selecting the right area for you, you must thoroughly research the specific area’s infrastructure and amenities to ensure you’re targeting the most attractive district for renters. Read more about real estate investing with our free property guide.

Lifestyle

The City of Westminster is a bustling urban centre that boasts high-profile London landmarks. This includes art hot spots like the National Gallery and Tate Britain, venues like the Royal Albert Hall and those found in the West End, and an exciting dining and nightlife scene. 

Despite the inner-city location, Westminster and its vicinity is also home to some of London’s largest green spaces like Hyde Park, Green Park and St. James’s Park.

Potential tenants won’t find much to be desired regarding leisure and the arts in Westminster. The area has an image that promises prestige and an aspirational lifestyle that will continue to attract affluent renters despite the extravagant rents.

Infrastructure

Westminster is located in Transport for London’s zone 1, making it exceedingly well-connected for public transport. Many underground lines serve it, and several major railway stations can be found in the area, as well as an extensive bus network.

Public spending in London is the highest in the UK, coming in at £13,719 per head in 2022, which is 15% higher than the UK average. In terms of infrastructure, Westminster is well-connected, convenient, and well-maintained. These favourable conditions look set to continue with the promise of regeneration projects in the area.

Regeneration

There are planned regeneration projects on the cards for Westminster to create further jobs and opportunities for residents and businesses.

Westminster City Council’s ‘Church Street Masterplan’ was approved in 2017, and since then, various projects have been greenlit in different parts of Westminster. In 2020, the city council pledged to turn the area into a carbon-neutral green city by 2040 by utilising new technologies and promised a multi-billion-pound investment for renewal.

These projects are set to bring even more rental demand to the area, as well as push up rents and property values in the future, making Westminster an area worth investing in sooner rather than later.

Read our Off-Plan Developments guide for the latest on urban regeneration and property investment.

While new builds are becoming more in demand, investors are aware of the elevated price that is expected when buying a newly built property. This is why off-plan arrangements are becoming more popular as a way to acquire a new build property at a discounted price.

Westminster is a very popular area meaning there are plenty of new build projects being currently worked on or in the pipeline. This means there are chances to find off-plan investment opportunities in Westminster, but it’s likely that these properties will be costly, even with the discounts that investing off-plan can offer.

It could also be worth searching for off-plan property in Watford and other London areas to find a better deal. Major cities in other regions such as Manchester and Liverpool are good bets for off-plan property and much more affordable than London.