There are some areas of London that are always in high demand, and you may think that investing in property in these areas is a straightforward and simple choice. No matter how attractive you think an area is though, you need to undertake research. Maida Vale is a hugely popular area of London but you should consider the current rental yields in Maida Vale before you rush to invest.
While rental yields can be quite fluid, the latest rental yields offered by properties in Maida Vale comprise of 4.95% rental yield for a 1 bedroom property, 4.08% rental yield for a 2 bedroom property, 4.1% rental yield for a 3 bedroom property and a 4.34 rental yield for 5+ bedroom properties. The rental yield for 4 bedroom properties in Maida Vale was recorded as 2.94% which is clearly lower than the rest of the rental yields in the area.
The rental yield is vital in determining the value of an investment
When it comes to calculating whether a rental yield is attractive enough for a landlord, there are many things to consider. It is fair to say that a rental yield of 4% is the tipping point for many landlords, but it is important to bear a few things in mind. There is an opportunity to add value to properties in Maida Vale and given the high level of demand for property in this part of London, a landlord that decides to sensibly invest in their property and improve the standard condition will find that they will have a greater level of demand, which can see them bring in a greater level of rental income, which should see them benefit from a higher level of rental yield.
There is also the fact that owning a property in Maida Vale is not of benefit in the short term, there are long term benefits to be gained from owning property in this part of London. Property prices for in-demand areas like Maida Vale are still on the rise, so this should provide a better return in the future. There is also the fact that owning a property in this area of the capital, which could be used at a later date, is a very sensible investment.
Property prices have risen sharply in Maida Vale
While the property prices in Maida Vale have risen by close to 25% in the past 12 months, which is a big factor in why the rental yields are currently low, there are a number of factors to bear in mind. Property prices change quicker than rental prices, especially depending on the landlord and their outlook, so the current modest returns available in rental yield in Maida Vale shouldn’t be too much of a concern.
Similarly, looking at property prices in areas surrounding Maida Vale, this is an investment that is far more affordable than many areas. The current average property price in Maida Vale stands at £799,438, a figure close to 50% higher than the London average, but it is also a figure lower than local areas like St Johns Wood, Paddington, Bayswater, Swiss Cottage and Notting Hill. In fact, the average property price in Maida Vale is around half the average property price in Notting Hill, so there is a need to think about the relative prices in the local market and then determine the potential return and value of Maida Vale.
Presently, rental yields in Maida Vale are not as high as they were, but crucially, they are not as high as they are likely to be either. There is a great deal to be said for looking into the future before investing and there is a lot to be said about what is on offer from the rental market in Maida Vale.
Please contact us to discuss your property requirements.
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