Areas of East London: Buy-to-Let Property Investment Hotspots
The East End of London is sometimes thought of as the ‘real’ London and the people who come from East London, the East enders, are often thought of as the real Londoners. One thing that is very real about East London is the good value property investment opportunities it offers.
Why Invest in East London?
East London includes the London boroughs of Barking & Dagenham, Havering, Newham, Redbridge and Tower Hamlets. Newham and Tower Hamlets are densely populated inner-city boroughs while the others are much more suburban.
East London is traditionally a gritty, industrial, working-class part of London. While that’s still true of some parts of East London today others have changed dramatically over recent decades and become more gentrified and popular commuter locations.
The headquarters of many major national and international companies are located in East London, mainly in the Canary Wharf area. The main industries here include banking, finance and tech. and major companies located here include Barclays, Citigroup, J.P. Morgan, KPMG, EY, Morgan Stanley and Thomson Reuters.
Many parts of East London have great transport links into central London and the City of London and elsewhere using London Underground, Overground, national rail and a transport network that is unique to East London the Docklands Light Railway or DLR.
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Road links connecting East London include the A12, A13, A406 North Circular Road and M11. The upcoming Crossrail/Elizabeth Line will make some parts of East London much more accessible with stations including Canary Wharf, Custom House, Stratford, Maryland, Forest Gate, Manor Park, Ilford, Seven Kings, Goodmayes, Chadwell Heath, Romford, Gidea Park, Harold Wood and Shenfield.
East London isn’t exactly the same as what is known as the East End of London. There’s no exact definition of London’s East End but it is usually thought of as an area that covers part of Tower Hamlets, Newham and Hackney. To be a real East ender or Cockney you need to have been born within the sound of Bow bells – the bells of St.Mary-le-Bow church on Cheapside EC2.
Places in East London include the Tower of London, Canary Wharf business district, Museum of London Docklands, Westfield Stratford City shopping centre, the V&A Museum of Childhood, Spitalfields Market, Brick Lane, the Queen Elizabeth Olympic Park and the ExCel London convention and events venue.
Property Values in East London
Property investors looking to invest in London should know that East London has some of the cheapest property in all of London. The average property price across East London is currently around £386,000, although in some parts property prices start from around £130,000. The cheapest part of East London is Barking and Dagenham while the most expensive part of East London is Tower Hamlets.
Barking in East London is on average the cheapest area to invest in property in all of London.
According to HM Land Registry, property prices across East London are currently: Barking & Dagenham - average house price: £303,389. Havering - average house price: £377,665. Newham - average house price: £382,662. Redbridge average house price: £432,138. Tower Hamlets - average house price: £437,574.
Rental Demand in East London
East London offers property investors every type of rental market opportunity. As well as the local market and those coming to work in the area, such as at Canary Wharf or one of the many business parks, some areas of East London are popular commuter areas with those who work in central London.
East London is a popular place for student accommodation too. As well as universities in the area, East London is a popular place to live for students at universities in more expensive parts of the capital. Universities here include Queen Mary University of London, the University of East London (UEL) at Stratford and Docklands, UCL East and London South Bank University (LSBU) at Harold Wood.
Some locations have major hospitals, such as the Royal London Hospital, King George Hospital and Queen’s Hospital, all adding to the strong demand for rented accommodation across East London.
Figures from the Home.co.uk Market Rent Summary show that the average rents across East London boroughs are: Barking & Dagenham average rent £1,366 PCM. Havering average rent £1,353 PCM. Newham average rent £1,471 PCM. Redbridge average rent £1,879 PCM. Tower Hamlets average rent £1,841 PCM.
East London yields can vary considerably depending on property prices in the area. Yields for any area within East London can be checked at Property.xyz. According to Property.xyz East London average yields are around 3.8% to 4.8%, which are some of the strongest levels of yields across London.
Property Investment in East London
Here’s our guide to property investment across the different boroughs of East London.
Barking and Dagenham
Population: 213,000 approximately
Average House Price: £303,389
The London Borough of Barking & Dagenham is around 10 miles east of central London. It is administered by Barking and Dagenham Council.
Areas of Barking & Dagenham include Barking town centre itself plus Becontree, Chadwell Heath and Dagenham.
Barking & Dagenham is covered by the E6, E12, IG1, IG3, IG11, RM5, RM6, RM7, RM8, RM9, RM10, RM12 and RM13 postcodes.
Barking & Dagenham has good rail links into central London making it a popular place for London commuters looking for an affordable place to live. Barking Riverside is to have a new London Overground rail link into London.
Barking & Dagenham is a busy commercial and industrial part of East London that offers buy-to-lets to those who work in the businesses here as well as London commuters. Official HM Land Registry figures confirm that Barking and Dagenham is the cheapest part of London to invest in property.
The Barking & Dagenham area is benefitting from lots of regeneration and redevelopment to make it more attractive as a place to live. Barking town centre is developing as a place for affordable city living. Barking Riverside is a new suburb of 10,800 homes being built in the borough. Beam Park near Dagenham is a £1 billion regeneration zone which is planned to have 3,000 new homes, local amenities and a station to connect it to central London.
Gross average rental yields in Barking & Dagenham are 4.8% on average.
For more detailed information about Barking take a look at our article on the best areas of Barking to invest in buy-to-let.
Population: 259,500 approximately
Average House Price: £377,665
The London Borough of Havering is an outer London borough and is historically part of the county of Essex. The London Borough of Havering Council provides local services in the area.
Romford is the main town in Havering and an important shopping and commercial area. Other towns in Havering borough include Hornchurch, Rainham and Upminster.
Havering is covered by the CM13, CM14, IG7, RM1, RM2, RM3, RM4, RM5, RM6, RM7, RM8, RM9, RM10, RM11, RM12, RM13, RM14, RM15 and RM19 postcode districts.
The fastest train from Romford into the City of London takes just 17 minutes making the Romford area, in particular, appealing to London commuters. The Elizabeth line/Crossrail will stop at Romford, Gidea Park and Harold Wood and may help to make these areas more popular for commuter rentals.
Although part of London with busy commercial and industrial areas some parts of Havering are semi-rural. Many parts of Havering are popular with those looking for more space than elsewhere in London at more affordable prices and rents. Havering is also a good location for commuters travelling into Essex and other parts of the south-east using the A12, A127 and M25 London Orbital motorway.
Gross average rental yields in Havering are 3.8%.
This recent survey says that Havering came out on top as the most profitable place in London to do a buy to let.
For more detailed information about Romford, we have an article on the best areas of Romford to invest in buy-to-let.
Population: 353,000 approximately
Average House Price: £382,662
The London Borough of Newham is a densely populated inner London borough. Newham is also a busy commercial and light industrial part of London. It is administered by Newham Council.
Areas of Newham include Beckton, Canning Town, East Ham, Forest Gate, Plaistow, Silvertown, Stratford, Upton and West Ham. The new Crossrail/Elizabeth Line will also serve Stratford and other places in the borough.
Newham is covered by the E3, E6, E7, E9, E10, E11, E12, E13, E14, E15, E16, IG1 and IG11 postcodes.
Newham is one of the best-connected places in London. As well as extensive London Underground, Docklands Light Railway (DLR) and London Overground rail services there are national rail services from Stratford International station. London City Airport is located in Newham. London City Airport offers flights to several major European cities.
The area around the Queen Elizabeth Olympic Park in Stratford, the main venue for the 2012 Olympic Games, has seen millions of pounds of regeneration over the last decade. The area is now a new, modern city suburb with new homes, commercial space and public amenities. The London Stadium, home to West Ham FC and a venue for events, is also here.
Major regeneration is underway in the former Royal Docks area in the south of Newham borough. £8 billion is being invested in the area to create a whole new city district here with up to 30,000 new homes, amenities and public transport links.
Gross average rental yields in Newham are 4.4%.
Population: 305,200 approximately
Average House Price: £432,138
The London Borough of Redbridge is to the north-east of central London. Redbridge has several large urban areas but it is mainly a suburban part of London and benefits from plenty of green space. Redbridge Council provides local services in the borough.
The main town in Redbridge borough is Ilford. Other areas of Redbridge borough include Goodmayes, Hainault, Seven Kings, South Woodford, Wanstead and Woodford.
Redbridge is covered by the E4, E7, E11, E12, E14, E18, IG1, IG2, IG3, IG4, IG5, IG6, IG7, IG8, IG9, IG11, RM4, RM5, RM6 and RM8 postcodes.
Transport links in Redbridge include the London Underground and national rail with the future Elizabeth Line/Crossrail also serving Ilford, Chadwell Heath, Seven Kings and Goodmayes. Redbridge borough also has good road links on the A406 North Circular Road and to the M11 motorway, making it a good location for commuters around south-east England as well as into London.
Redbridge isn’t the cheapest part of East London for a property but it’s still much cheaper than the most pricey North London and West London boroughs. Some areas including South Woodford, Woodford and Wanstead are popular areas with London commuters.
Gross average rental yields in Redbridge are 3.9%.
Population: 324,700 approximately
Average House Price: £437,574
The London Borough of Tower Hamlets fringes central London and the City of London. The borough owes its name to the famous Tower of London which is located here. Tower Hamlets is part of the East End of London and is a densely populated inner-city area. Local services in Tower Hamlets are provided by Tower Hamlets Council.
Areas of Tower Hamlets borough include Bethnal Green, Blackwall, Bow, Bromley, Cubitt Town, Limehouse, Mile End, Poplar, Shadwell, Stepney, St. Katherine’s, Wapping and Whitechapel.
Tower Hamlets is covered by the E1, E2, E3, E8, E9, E14, E15, E16, EC2, EC3 and SE1 postcodes.
Tower Hamlets has excellent transport links into the City of London, central London and all around the area with London Underground, London Overground and the DLR network. Some parts of Tower Hamlets are within cycling distance or walking distance of major employers in the City and Canary Wharf.
Tower Hamlets also benefits from good access to South London across the River Thames using the Blackwall Tunnel and Rotherhithe Tunnel.
Some parts of Tower Hamlets, especially the former London Docklands, have seen a huge amount of regeneration and redevelopment over the last few decades and once rundown areas have become major commercial and residential districts. Canary Wharf, one of London’s most important business districts, is located in Tower Hamlets on the Isle of Dogs.
Tower Hamlets has a very mixed property market: Many parts of Tower Hamlets have high levels of deprivation. The areas along the River Thames waterfront, around the former London Docklands and Canary Wharf, are upmarket areas with high property prices and are popular with commuters and city workers. The eastern parts of the borough including Bow, Globe Town and Mile End have lower property prices.
Tower Hamlets is the most expensive area of East London for a property at around £437,000 on average, although property in the Tower Hamlets area starts from around £210,000.
Gross average rental yields in Tower Hamlets are 3.8%.
Is Hackney in East London or North London?
Many people ask whether Hackney is part of East London or not. Traditionally, Hackney is thought of as being a part of London’s East End. However, much of the London Borough of Hackney is actually north of the City of London. So it’s often said that Hackney is part of North London rather than East London.