The London Buy To Let Guide: East London

In our second article on ‘London’s best places for buy-to-let’ series, we’ll take a look at the capital’s eastern boroughs.
They have been enticing property investors as place to buy-to-let in London for some time for one reason – its properties have potential for growth.
Many of its key postcodes are still on their regeneration journey and offer – if you get the timing right – an ideal mix of lower-than-average house prices, popularity among tenants and potential for future development.
buy to let east londonUntil only a few years ago, places such as Shoreditch, Dalston, Stoke Newington, Stratford and Whitechapel were, some might unkindly say, relative no-go areas for some tenants and landlords.
But not now. As rents and property prices have risen in many other areas, so the East has become a fashionable and affordable best place to invest in London as many landlords have followed the tenants east, attracted by high gross returns helped by its lower house prices but relatively high rents.
For example, according to Rightmove the average house price in East London’s most inner-city borough, Tower Hamlets, is £535,432 while over the river in Lewisham the average price is over £100,000 more expensive at £663,880.
Here’s some food for thought if you’re considering a London buy to let.
 

Old East End

Stepney Green

Average house price: £531,786
In a nutshell:
Stepney Green has seen many different communities come and go from the Huguenots to the Irish and more recently immigrants from Bangladesh, who still give the area its distinctive flavour. Signs of gentrification have only recently kicked off, but the area remains heavily influenced by the bombing that flattened a third of it during WWII, and from which plenty of post-war tower blocks rose from the ashes.
Property:

  • One-bedroom apartments: from £280,000
  • Two-bedroom apartments: from £330,000
  • Three-bedroom houses: from £850,000
  • Four-bedroom houses: from £1.2 million

Limehouse

Average house price: £463,162
In a nutshell:
This small, former dockside community clings to the A13 and is sandwiched between Canary Wharf and Shadwell. Once a bleak no-go zone, it is now a fashionable place to live, helped by Regent’s Canal – along which money has been arriving as gentrification moves eastwards along the canal. The area has witnessed a deluge of redevelopment.
Property:

  • One-bedroom apartments: from £250,000
  • Two-bedroom apartments: from £325,000
  • Three-bedroom houses: from £750,000
  • Four-bedroom houses: from £1 million

Bethnal Green

Average house price: £544,391
In a nutshell:
Originally part of Stepney, Bethnal Green’s compass now points towards the nearby Square Mile but, despite hipster neighbours such as Shoreditch and Haggerston, the area is trying hard not to be pretentious despite a swathe of recent apartment developments and period conversions, and the spread of the ubiquitous craft coffee shop.
Property:

  • One-bedroom apartments: from £280,000
  • Two-bedroom apartments: from £345,000
  • Three-bedroom houses: from £950,000
  • Four-bedroom houses: from £1 million

Poplar

Average house price: £460,706
In a nutshell:
Poplar was rebuilt after being largely obliterated during WWII’s blitz and was heralded as the bright new future of post-war London, and retains that spirit today. The area remains an affordable and unpretentious bulwark to the gleaming wealthy in neighbouring Docklands. One unusual aspect of the property market is the Poplar marine, where houseboats are available from £150,00 with moorings.
Property:

  • One-bedroom apartments: from £220,000
  • Two-bedroom apartments: from £325,000
  • Three-bedroom houses: from £480,000
  • Four-bedroom houses: from £620,000

Hipster hangouts

Shoreditch

Average house price: £695,050
In a nutshell:
An achingly cool slice of formerly forlorn East End on the fringes of the City that’s now become expensive both to buy property in and live as developers have seized the opportunity to cash in on the area’s popularity.
Property:

  • One-bedroom apartments: from £350,000
  • Two-bedroom apartments: from £385,000
  • Three-bedroom houses: from £745,000
  • Four-bedroom houses: from £850,000

Hoxton

Average house price: £675,915
In a nutshell:
Another City/East End fringe area that has gentrified rapidly and become a by-word for hip London hangouts, full of achingly cool food, drinks and clothing stores. But its reputation is larger than its layout; Hoxton is a relatively small tangle of roads around its eponymous but compact square.
Property:

  • One-bedroom apartments: from £290,000
  • Two-bedroom apartments: from £400,000
  • Three-bedroom houses: from £950,000
  • Four-bedroom houses: from £1.5 million

Stoke Newington

Average house price: £503,387
In a nutshell:
A fashionable but family-friendly and fiercely independent area famous for its Victorian stock, cool shops, bars and restaurants, parks and reservoirs.
Property:

  • One-bedroom apartments: from £275,000
  • Two-bedroom apartments: from £360,000
  • Three-bedroom houses: from £650,000
  • Four-bedroom houses: from £750,000

Whitechapel

Average house price: £655,969
In a nutshell:
An area strongly influenced by Bangladeshi immigration to the east of Aldgate that is transitioning from hard-working district into a Hoxton-style enclave of artists, with developers and property investors not far behind.
Property:

  • One-bedroom apartments: from £300,000
  • Two-bedroom apartments: from £350,000
  • Three-bedroom houses: from £900,000
  • Four-bedroom houses: from £1,000,000

Mile End

Average house price: £513,735
In a nutshell:
A formerly gritty working-class suburb of East London once famous for being a gangland redoubt, its good transport links into central London have persuaded many professionals to move there and gentrification has followed.
Property:

  • One-bedroom apartments: from £260,000
  • Two-bedroom apartments: from £320,000
  • Three-bedroom houses: from £740,000
  • Four-bedroom houses: from £900,000

Haggerston

Average house price: £424,515
In a nutshell:
A second-tier hipster hotspot between Hoxton and Dalston that has only recently become a popular hangout and is now famous for its must-visit restaurants and bars, and the new build developers have followed – many of the former drab council estate are being replaced with new-build developments.
Property:

  • One-bedroom apartments: from £260,000
  • Two-bedroom apartments: from £320,000
  • Three-bedroom houses: from £740,000
  • Four-bedroom houses: from £900,000

Dalston

Average house price: £494,003
In a nutshell:
Dalston is at transition point between former art student neighbourhood and somewhere City traders like to live to give themselves an edge; it’s buzzy, busy and there are lot of beards about. It has excellent transport and is served by four train stations.
Property:

  • One-bedroom apartments: from £275,000
  • Two-bedroom apartments: from £375,000
  • Three-bedroom houses: from £520,000
  • Four-bedroom houses: from £650,000

Riverside

Shadwell

Average house price: £607,359
In a nutshell:
A relatively deprived riverside area of East London that the gentrification process has bypassed, despite being squeezed between the luxury flats of Wapping and only a few Tube stops from the City. But a handful of luxury developments on its fringes distort its average house prices – away from them, prices are much lower.
Property:

  • One-bedroom apartments: from £280,000
  • Two-bedroom apartments: from £340,000
  • Three-bedroom houses: from £650,000

Olympics Stratford

Average house price: £420,133
In a nutshell:
A formerly hard-working area that, following the 2012 Olympics held near its central shopping area, had billions poured into its infrastructure and housing but which, despite this, remains relatively affordable compared to more fashionable parts of East London.
Property:

  • One-bedroom apartments: from £160,000
  • Two-bedroom apartments: from £250,000
  • Three-bedroom houses: from £347,000
  • Four-bedroom houses: from £450,000

Isle of Dogs

Average house price: £536,418
In a nutshell:
It’s the hunk of former docks in the crook of a Thames u-bend that now holds the shimmering towers of Canary Wharf as well as the lesser-known areas such as Cubitt Town, Millwall and London Yard. Having mostly been a place where you worked, the Isle of Dogs is now, following a huge burst of new homes building, a place to live too.
Property:

  • One-bedroom apartments: from £240,000
  • Two-bedroom apartments: from £325,000
  • Three-bedroom houses: from £600,000
  • Four-bedroom houses: from £700,000

In summary

House prices in East London have doubled since the early noughties and, like many other parts of London, rents have been rising too as demand outstrips supply for rental properties. But the journey to regeneration is far from over – and both capital values and rents have a long way to go before they catch up with West, North and central London.
At No Agent we are ideally placed to offer a way to offset buy to let landlords’ costs. Our flexible, affordable way to manage buy-to-let properties will save you from the hassle of having to directly manage your buy-to-lets and from paying extortionary property management fees to a traditional lettings agent. Find out more about our service.