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What Size Flat Should I Purchase As A Buy To Let In SE18?

One of the most common questions I get asked from landlords looking to buy in the area is whether to buy a one or two bedroom flat to rent out to tenants.

As one of the main considerations for landlords is monthly income, particularly now with the new tax regulations just round the corner, comparing the yield can give a good indication of which property to purchase.

The average asking price of a one bed apartment/flat in SE18 is currently £349,811 with an asking rental figure of £1146pcm this would give a yield of 3.93%.

As you can probably tell from these figures they include the new higher end developments such as Royal Arsenal Riverside, if we removed these developments and dealt only with the remaining properties the average sales figure comes to £230,713 and the rental £954 giving an improved yield of 4.96%.

Doing the same for two beds the average asking price is currently £499,031 and at a mean rental of £1432 a yield of 3.44% will be achievable. Again after taking off the higher priced developments the asking sales figures would point to £272,665 being the average figure for two beds with a rent of £1181 per month giving a yield around the 5.19% mark.

So as you can see if your primary consideration is yield then the older properties tend to edge it by quite a margin and existing two bed properties slightly outperform their one bed counterparts, but the margins are quite small so I wouldn’t rule out either size and would instead place more emphasis on finding the best deal currently available.

If you’d like to discuss investing in the area why not send me an email paul@allavenues.co.uk