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Property Prices, Values and Rental Yields

No matter where you are looking to move in the property market, it is important that you give the decision some proper thought and research. Even if you are looking to buy or invest in an area that you know quite well, there is a need to review the financial aspect of a deal. Areas like Bow and Bethnal Green are highly attractive and appealing but if you’re looking to make a smart decision, you will want to consider the latest property prices, values and rental yields for each area.

Both Bow and Bethnal Green are located in the London Borough of Tower Hamlets and these areas have changed a lot in recent years. The East End of London has experienced a great deal of regeneration and if there is a legacy of the 2012 Games, it may be seen in property and developments as opposed to in the sporting environment.

Consider the property value and prices before making a move

As of October 2017, the average value of property in Bow stands at £462,946 while in the past 12 months, the average price paid for Bow property stands at £459,252. In the past six months, the average price paid for property in Bow stands at £481,953 and in the past three months, this has risen to £506,237.

Looking at these figures would suggest that prices are on the rise in Bow but it always best to be cautious when it comes to examining property prices in a small period of time. In a three or six month period, a few outliers can have a big impact but on the whole, there is confidence that the Bow property market is attractive at the moment.

When it comes to rents, which is also an important area of the Bow property market, the average property rents in Bow stands at £1,483 per calendar month (PCM). This of course can be broken down to individual property types, with the figures standing at:

  •    A one bedroom property in Bow has an average PCM rent of £1,381
  •    A two bedroom property in Bow has an average PCM rent of £1,840
  •    A three bedroom property in Bow has an average PCM rent of £2,111
  •    A four bedroom property in Bow has an average PCM rent of £2,526
  •    A five bedroom property in Bow has an average PCM rent of £2,769

If you are looking to invest in Bow property with respect to the buy to let market, it is vital that you consider the expected rental yields. A one bedroom property provides an expected rental yield of 5.8%, a two bedroom property offers an expected rental yield of 6.16% and there is an expected rental yield of 6.26% for a three bedroom property. The expected rental yields for four and five bedroom properties in Bow are 4.48% and 3.5% respectively.

Budget is always essential when it comes to property

The value of property in Bethnal Green is slightly higher than the Bow figure, standing at £505,086 while the average price paid for Bethnal Green in the past 12 months stands at £509,874. There has been a fluctuation in property prices in Bethnal Green in the past year, with the average price paid for the past six months coming in at £527,050 and the average price paid in the most recent three months stands at £492,243.

Again, the same caveats about not reading too much into changes in the shorter term property market is important and there is confidence that the Bethnal Green property is in high demand at the moment.

The average property rents in Bethnal Green are also higher than the Bow figure, coming in at £1,723 per calendar month. This figure can be broken down as follows:

  •    A one bedroom property in Bethnal Green has an average PCM rent of £1,553
  •    A two bedroom property in Bethnal Green has an average PCM rent of £2,060
  •    A three bedroom property in Bethnal Green has an average PCM rent of £2,353
  •    A four bedroom property in Bethnal Green has an average PCM rent of £2,743
  •    A five bedroom property in Bethnal Green has an average PCM rent of £3,054

When it comes to the rental yield of Bethnal Green, there is an expected return of 4.76% for a one bedroom property while a two bedroom property provides an expected return of 5.08%. The returns for a three bedroom, four bedroom and five bedroom property stand at 5.64%, 5.04% and 4.94% respectively.

The properties in Bow (apart from the five bedroom property option) are the more attractive with respect to expected rental yield, and this perhaps backs up the assumption that a lower property price will often help provide a greater rental yield. However, the returns in both areas are attractive and well within the level of acceptable returns for an investment. It may be that you have a personal reason to buy to let in Bethnal Green as opposed to Bow, but you should find that both of these East London areas have a lot to offer.

At Unico Property Group, we know the East End of London and we are here to help you make the right decision when it comes to property. Whatever your aims and ambitions are, make sure you contact Unico Property Group and we will help you out.



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