Rental yields on London investment property
Property investors in London have seen a strong rise in rental yields on their investment property in the last three years. There are two reasons for this:
- 1. As prices fall, provided that the rent remains the same, rental yields will rise.
- 2. In the current market where so many would-be buyers can't raise finance, the rental market is booming and in many London areas rents have been rising strongly.
Check this example of an increasing rental yield on London property
Let's say a two bed apartment in Wandsworth, London was valued at £300,000 and achieved a monthly rental of £1,000. The gross rental yield would be 4%. This was typical of much London investment property until recently.
Now let's say the price has fallen 20% to £240,000 but the rental remains the same at £1,000. Your gross rental yield has increased to 5%.
Bring Axis into the equation with the ability to negotiate below market value pricing. Assume that this same apartment is made available by Axis at £200,000, saving you £40,000. The rental yield has now increased again to 6%.
And finally, the current market is showing strong rental growth so let's say you can now achieve £1,200 a month rental. The rental yield, based on investing through Axis, has reached 7.2%!
Invest in London property through Axis, buying below market value and with Axis picking areas of strong rental demand, it's reasonable to assume you will achieve a rental yield for London investment property of around 80% more than you would have done as recently as three years ago.
This increased rental yield ensures that investors with minimum deposits can still achieve an excellent positive cashflow ensuring a safe and reliable investment into the future.
Register with Axis now to receive details of London investment property

