Areas of North London: Buy-to-Let Property Investment Hotspots
The London property market is the biggest property market in the UK by far. Here we’ll zoom in on the North London property market, and try to answer the question: Where are the best property bargains and best buy to let opportunities in North London?
Why Invest in North London?
North London is widely considered to be one of the most sought after residential areas of London. North London has great transport links, great amenities, plenty of green space and a wide choice of property types from contemporary new builds to period property.
North London comprises the London boroughs of Barnet, Camden, Enfield, Hackney, Haringey, Islington and Waltham Forest. Within that, the North London boroughs are all quite different. Camden, Islington and Hackney fringe central London but Barnet, Enfield and Waltham Forest are suburban.
North London benefits from excellent transport links, explaining why it is such a favourite with London commuters. North London is well served by London Underground, London Overground, national rail services and Transport for London (TfL) bus services. It has good links to roads out of London such as the A1, A10, M1, M11 and M25 and access to current and future TfL Cycleways or cycle-superhighways.
Sights that North London is known for include London Zoo, Camden Market, Regent’s Canal Regent’s Park, Primrose Hill, Hampstead Heath, Abbey Road Studios, Highgate Cemetery and Alexandra Palace to name just a few. Other well known North London sites include Arsenal FC’s Emirates Stadium, Tottenham Hotspur’s brand new stadium just off White Hart Lane and Lord’s Cricket Ground.
North London has many further and higher education institutions, so some places have good potential for student lets including to overseas students. University College London (UCL) is one of the UK’s leading universities. UCL has 42,000 students from 150 different countries around the world.
Property Values in North London
London is known for high property prices. Parts of North London have some of London’s most expensive property. However, there is still good value property in parts of the North London area if you know where to look.
According to HM Land Registry, property prices across North London are currently: Barnet average house price £526,553. Camden average house price £870,627. Enfield average house price £400,695. Hackney average house price £551,629. Haringey average house price £547,124. Islington average house price £706,623. Waltham Forest average house price £440,353.
The average property price across North London is currently around £557,000. The most expensive North London borough is Camden while the cheapest place, to buy a property, is Enfield.
Rental Demand in North London
North London buy to let landlords can benefit from high rental demand including demand from local residents, commuters, people moving in from the UK and abroad and students. North London is a favourite for celebrity homes too.
North London is a really popular residential area for those who work in central London and the City of London. Lettings near tube and railway stations that are within Zone 1 or Zone 2 on Transport for London’s zonal fares map are often most sought after, as they offer much cheaper rail and tube fairs for commuters.
Figures from the Home.co.uk Market Rent Summary show that the average rents across North London boroughs are: Barnet average rent £2,130 PCM. Camden, Camden Town average rent £2,868 PCM. Enfield average rent £1,323 PCM. Hackney average rent £1,898 PCM. Haringey, Hornsey average rent £1,531 PCM. Islington average rent £2,311 PCM. Waltham Forest, Walthamstow average rent £1,403 PCM.
While North London house prices can be high, rents are also high in many boroughs. This means landlords can earn strong letting yields. According to Liveyield yields range from 2.4% to a strong 5.6% depending on the area.
Property Investment in North London
Here’s our guide to property investment across the different boroughs of North London.
Population: 384,000 approximately
Average House Price: £526,553
The London Borough of Barnet is one of the northernmost London boroughs. Barnet is mainly a suburban borough, with lots of parks and green spaces. The northern parts of Barnet have a semi-rural feel. They appeal to buyers and tenants who want to be close to London without living in the city as such.
Barnet is covered by the EN5, N2, N3, N12, N20, NW2, NW4, NW7, NW9 and NW11 postcodes. Areas of Barnet include Arkley, Chipping Barnet, Edgware, Finchley, Friern Barnet, Golders Green, Mill Hill, Hendon and Totteridge. Barnet is within the Barnet Council area.
Barnet has good transport links. Barnet is served by the London Underground Northern Line and Thameslink amongst other services. Barnet also has much better road links than many London suburbs being close by the A1, the A406 North Circular Road and right on the M1 motorway.
The large Brent Cross Shopping Centre is in Hendon.
Letting yields in Barnet range between 3.1% and 4% depending on the area, according to Liveyield.
Population: 270,000 approximately
Average House Price: £870,627
The London Borough of Camden is one of the southernmost North London boroughs. It fringes central London and the West End. Some parts of Camden are heavily built up and densely populated while others are more suburban.
Areas of Camden include Belsize Park, Bloomsbury, Euston, Camden Town, Hampstead Heath, Highgate, Kentish Town, King’s Cross, Primrose Hill, St. John’s Wood and Swiss Cottage. Camden is covered by the London Borough of Camden council.
Camden is covered by the following postcodes: EC1N, N6, NW1, NW3, NW5, NW8, WC1A, WC1E, WC1N, WC1H, WC1B, WC1R, WC1T, WC1V WC1X, WC2A and WC2B.
Camden is one of the best-connected places in London for public transport. As well as many stations on the London Underground and London Overground, national rail stations, Euston and King’s Cross, are in Camden. A new station is being built at Euston for the future HS2 line. A big advantage of Camden for the buy to let market is that it’s possible to walk or cycle to work in central London.
Much of Camden falls within Zone 1 or Zone 2 of Transport for London’s zonal fares system. That makes it more attractive to buy to let tenants who need to travel into central London.
Areas like Finsbury, Bloomsbury and King’s Cross are home to numerous large employers, with Google and Facebook locating here. Many parts of Camden have a trendy vibe and a busy social scene. That means Camden is particularly popular with young professional tenants.
Well-known locations like Camden Market, London Zoo, the British Museum and the British Library plus popular theatres are in the area, so Camden attracts visitors and tourists too.
The large University College Hospital is also in Camden.
Rental yields in Camden range from 2.4% to as much as 4.5%.
Population: 333,700 approximately
Average House Price: £400,695
The London Borough of Enfield is in the north part of North London. Enfield is a suburban borough and parts of it are quiet for somewhere that is within London. It borders the counties of Hertfordshire and Essex.
Areas of Enfield borough include Edmonton, Enfield Town, New Southgate, Palmers Green and Southgate.
Enfield postcodes are EN1, EN2, EN3, EN4, EN8, N9, N11, N13, N14, N18 and N21. Enfield is within the Enfield Council area.
Transport services in Enfield include the Piccadilly Line of the London Underground and the London Overground. Enfield has good road connections to the M25 London Orbital Motorway as well as the A10 and A406 North Circular.
Enfield has cheap property compared to much of north London. In fact, Enfield has the cheapest house prices in North London. That makes Enfield popular with family buyers and tenants looking for more space at a reasonable cost.
Yields in the Enfield area are the highest in North London. They range between 3.2% and 5.6%.
Population: 281,000 approximately
Average House Price: £551,629
The London Borough of Hackney is located to the north-east of central London. Hackney is a densely populated inner London borough. Hackney includes both residential areas, including many large post-war housing estates, plus light industrial areas.
Areas of Hackney include Dalston, De Beauvoir, Hackney, Hackney Marshes, Hackney Wick, Haggerston, Hoxton, Shoreditch, Stamford Hill and Stoke Newington. Hackney falls within the Hackney council area.
Hackney postcodes are N1, N15, N16, E5, E8, E9, E10 and EC2A.
Hackney has good transport links on the London Overground network. National rail services are also available at nearby Liverpool Street station.
Some parts of Hackney are amongst London’s more deprived areas. But some areas like Hoxton and Shoreditch, around Shoreditch High Street, have become fashionable residential areas for those who work in central London and the City. Locations, where it’s possible to walk or cycle to work, are especially popular with Hackney renters.
Yields in Hackney range between 2.6% and a strong 5.2%.
Population: 268,600 approximately
Average House Price: £547,124
The London Borough of Haringey is a central north London borough. Haringey has borders with Barnet, Camden, Enfield, Hackney, Islington and Waltham Forest too.
Areas of Haringey include Bounds Green, Crouch End, Highgate, Hornsey, Muswell Hill, Seven Sisters, Tottenham Green, Tottenham Hall and White Hart Lane. Haringey Council is the local authority for the Haringey area.
Haringey postcodes are N4, N8, N10, N17 and N22.
Haringey has especially good transport links with services on the London Underground Piccadilly Line, Northern Line and Victoria Line and London Overground.
Although Haringey isn’t the cheapest borough in North London it’s notably cheaper than boroughs to the south. So Haringey appeals to those who want good value property yet still be within 15-25 minutes by train from central London.
Yields in Haringey are in the range of 3.6% to 5%.
Population: 206,100 approximately
Average House Price: £706,623
The London Borough of Islington is on the fringes of central London and immediately north of the City of London. Islington is a densely populated inner London borough.
Areas of Islington include Barnsbury, Canonbury, Lower Holloway, Highbury and Upper Holloway. Islington comes under the Islington council area.
Islington postcodes are EC1M, EC1R, EC1V, EC1Y, N5, N9 and N17.
Islington is one of the best-connected London boroughs. It is well connected to the London Underground, Northern Line, Piccadilly Line, Circle Line, Hammersmith and City Line and Metropolitan Line and the Thameslink network. Farringdon station will have services on the new Crossrail or Elizabeth line too once it opens.
In recent decades Islington has gained a reputation as being a trendy and liberal place to live and is known for its theatre, arts and cultural venues. The Angel, Upper Street and Exmouth Market are amongst Islington’s smart shopping and dining areas.
Islington is also one of London’s tech. hubs with a cluster of digital business especially around Farringdon and Old Street, around an area known as Silicon Roundabout. That makes Islington a good bet for attracting professional tenants.
Much of Islington falls within Zone 1 or Zone 2 of Transport for London’s zonal fares system. That makes it more attractive to buy to let tenants who need to travel into and around central London.
Parts of Islington include some of London’s most expensive and exclusive residential areas where the most desirable Georgian properties can cost several million pounds. However, according to Rightmove and Zoopla, you can buy property in Islington from as little as £150,000.
Yields in Islington range from 2.5% to 3.9%.
Population: 278,000 approximately
Average House Price: £440,353
The London Borough of Waltham Forest is in north-east London. The south of Waltham Forest is very urban and more densely populated. The northern and central parts are suburban with plenty of green space and some areas that still have a villagey feel.
Epping Forest, London’s largest open space, is partly within Waltham Forest.
Areas of Waltham Forest include Chingford, Leyton, Leytonstone, Walthamstow and Whipps Cross. Waltham Forest is covered by just three postcodes – E4, E11 and E17. Waltham Forest is part of the Waltham Forest council area.
Waltham Forest has good transport connections into central London and the City using the Underground’s Central Line and Victoria Line and the London Overground. Waltham Forest also has good road connections to the A406 North Circular Road and M11 motorway. Waltham Forest is mainly located in Zones 3, 4 and 5 of Transport for London’s zonal fares system.
The area has good value property compared to much of North London. Waltham Forest is the second cheapest borough in North London. It’s popular with families moving out of more central areas and looking for cheaper house prices and a suburban location.
Yields in Waltham Forest are 4.2% to 4.7%.