According to housesforsaletorent.co.uk, the average monthly rent in Dagenham is £1,552 PCM. This is more expensive than the average UK rent of £1268 PCM calculated by the HomeLet Rental Index but cheaper than the London figure, which comes in at £2127 PCM. So, despite the hefty rent required to live in Dagenham, it’s still a more affordable option for tenants when compared to many other London areas.
Zoopla states that Barking and Dagenham is currently the best area in London for high average rental yields. They calculate the gross average rental yield for the area to be 6.24%. This is impressive for a buy-to-let property in London, as they typically have meagre rental yields.
When it comes to rental demand, London has a higher proportion of people renting than other areas. There aren’t enough private rental properties to meet demand, meaning there is likely to be consistent demand from potential tenants in Dagenham, and rental costs will stay high.
In terms of possible student accommodation investment opportunities, Coventry University has a site at Dagenham; the town is also in reasonable proximity to Central London, where there are several world-class further educational institutes.
However, Dagenham is not known as a student town, and other parts of London may be more appealing to student renters.