Rental Yields in Shoreditch

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Rental Yields in Shoreditch

Given that Shoreditch has been one of the most talked about areas in London in recent years, you may be forgiven for thinking that you have missed out on the property and lettings boom. The area has almost become synonymous with the notion of gentrification but modern day Shoreditch is slightly more refined compared to the area that created so many headlines in the media after its initial boom.

The impact of Crossrail is being felt in the area and while the gentrification of East London continues at great pace, it is areas to the East and North of Shoreditch that are the current flavours of the moment or which are experiencing the great leaps forward. If anything, Shoreditch is settling down and it is recognised as a place of work as much as the fun and frivolous nature that many people deemed it to have a good few years ago. This may not be as much fun but it does provide a better blend of work and entertainment, and when it comes to the rental market in Shoreditch, there is still a lot to be excited about for an investor. This is why working with the best estate agents in Shoreditch can be of great benefit.

The E2 postcode area is the relevant one for potential Shoreditch investors
While every investor needs to calculate the level of return that they are comfortable with, many property and rental experts suggest that a rental yield of over 4% is a solid return. If this sounds suitable to you, the expected rental yields across property types in Shoreditch should be of interest. The E2 postcode area is the one that people should study when it comes to Shoreditch rental yields and for a one bedroom property, the expected rental yield is 4.76%.

The expected rental yield for a two bedroom property is 5.08%, the expected rental yield for a three bedroom property is 5.64% and the expected rental yield for a three bedroom property is 5.64%. If you invest in a five bedroom property, the expected rental yield is 4.94%, so all of the expected rental yields stand well above the minimum rate that many advisors, including the leading Shoreditch estate agents, recommend.

If you have the funds, a three bedroom property in Shoreditch may be your best investment option
It is interesting to note that the lowest expected rental yield for properties in Shoreditch is the one bedroom property, a situation which stands in contrast to most other areas in London. It is usually the one bedroom property that provides the most attractive rental yield but in Shoreditch, if you are looking to invest in property, and you have the funding available, opting for a three bedroom property is likely to be your best option.

However, there should be a solid return on offer from all property in Shoreditch and there is a long term confidence about this area. Yes, the Shoreditch boom era is behind us but looking forward, Shoreditch appears to be a consistent area which will offer confidence for any investor, regardless of what their short and long term aims are.