Avg. House Price: £1,650,757
Avg. Gross Rental Yield: 3.27%
Undoubtedly one of the best areas to invest in London if you have the cash, Central London is one of the most iconic areas of London.
Home to locations like the West End, Buckingham Palace, Big Ben, and Parliament, Central London is one of the best places to live for professionals.
With access to fantastic business opportunities, unrivalled transport links, restaurants, and sights to see, Central London is one of the most desired UK locations with over one and a half million residents.
However, according to Zoopla, these attributes come at a premium, with average house prices valued at a staggering £1.65 million.
Although these costs are high, rent is also huge with some areas like WC2 coming in at £7,167 PCM.
However, this high rental income isn’t enough to offset the staggering costs, with rental yields in Central London valued at just 3.27%, making it one of the lowest rental returns in the UK.
Prices and returns can get even worse depending on where you go. A property in the illustrious West End, for instance, can set you back a staggering £2,369,823 with returns of just 1.11%.
Due to these prices, Central London is typically not considered the best area to invest in London for the average property investor.