Dagenham Buy-to-Let Guide

According to Rightmove, the average property price in Dagenham was £361,211 over the past year. This is much cheaper than the London average, which stands at £532,113 as stated by the UK House Price Index. However, it is still substantially pricier than the UK average of £287,782.

Rightmove states that Dagenham’s average property price is similar to last year’s figure and is 5% higher compared to 2021.

The lack of growth in Dagenham property prices over the last year is unsurprising as the UK property market has been generally subdued, particularly affecting the London area. Why not learn more about property investing with our free guide.

Looking to the future, the UK property market is forecast to return to good growth in the next few years, with a predicted boost of 17.9% leading to 2028, as per Savills. However, the outlook for London is not as promising as the national forecast, with a prediction of 13.9%, which may be bad news for Dagenham investors.

The London Underground District Line runs through Dagenham, and Becontree station is the closest to central London. Moving out, there’s a station at Dagenham Heathway. This small commercial area is considered the borough’s second town centre after Barking Town Centre. At the eastern edge of Dagenham, there’s Dagenham East station, which is close to the Eastbrookend Country Park.

The area around the Dagenham Dock train station is in the south, beside the River Thames. Chadwell Heath is a separate area that borders Dagenham to the north.

Becontree

Average Property Prices in Becontree

The average property price in this area is £362,713.

Average Rental Yield in Becontree

The average rental yield in this area is 5.16%.

Average Property Prices in Dagenham East

The average property price in this area is £366,502.

Average Rental Yield in Dagenham East

The average rental yield in this area is 7.65%.

Average Property Prices in Chadwell Heath

The average property price in this area is £403,784.

Average Rental Yield in Chadwell Heath

The average rental yield in this area is 6.59%.

(Average property prices were taken from Rightmove in late 2023, and rental yield estimates were calculated with figures from housesforsaletorent.co.uk in the same period – We have a useful Stamp duty calculator for our readers to utilise)

Affordable Property

Dagenham is one of the cheapest areas in London to buy property, making it a top choice for London buy-to-let investors.

By getting a good deal on a property, investors can keep the initial costs of investing low and start seeing returns quicker. For this reason, it’s advisable to research more affordable areas with high demand levels.

Dagenham is one of the best options for investors explicitly searching for a London property, but prices still tend to be much higher than the UK average. It’s worth remembering that other regions are typically much more affordable.

Regeneration

Plenty of exciting regeneration schemes on the cards for the Barking and Dagenham borough should help make the area more profitable for investors. Why not learn how to invest in real estate with our free guide!

This includes a possible new London Overground station and a new film studio in Chadwell Heath.

Thanks to these various regeneration efforts, Barking and Dagenham seems to be an up-and-coming area of London.

Looking out for regeneration areas is a good strategy for property investors to find cheaper regions that benefit from capital growth in the near future. This is because the area will become more attractive and likely see a boost in popularity as a place of residence.

Across the country, there’s a lack of available rental properties, and new builds are needed to keep up with demand. Dagenham is no exception, and the local council and private developers have this area in mind for further development.

Regeneration areas, particularly, such as Becontree Heath, seem to be attractive locations for new builds.

When it comes to the best areas to invest in London, Dagenham seems like one of the best value areas for property investors to target. While cheaper properties can be found in surrounding commuter towns such as Luton and Slough, Dagenham is one of the top options for those who want a more central London property.

However, for investors willing to look further afield, properties in the North of England can be acquired much cheaper and, on average, offer much better rental yields.

In particular, major cities in the North West are increasingly popular for buy-to-let investments. While the Dagenham area ranks as one of the best parts of London for high rental yields, Liverpool has one of the highest average gross rental yields for the whole country, according to Zoopla. Investment properties in Manchester can generally be acquired cheaper than the national average.

Looking to the future, London also has the worst projected capital growth for the next few years, as predicted by property experts Savills. London is expected to grow 13.9% up to 2028, lower than the UK average of 17.9%. The North West is forecast to grow 20.2%, a much more promising number than London.

Learn more: Find out why North West property professionals are more optimistic by reading our latest news and insights.