Shoreditch: A Buy-to-let Guide

Since the early ‘00s Shoreditch has become one of the coolest places to live in London. The east London district has been transformed over the past two decades, offering lots of new property developments, business zones and nightlife right on your doorstep. Our Shoreditch buy-let-guide gives you more insight into the area and explains why it remains such an attractive proposition for potential investors. 

The local property market

Average sale prices in the Shoreditch continue to rise, having increased by over 25% in the past 12 months. As of 2020, the average flat in the area costs around £820,000, with house prices coming in at a lower rate of £780,000.

The range of sale prices is quite wide, with a one-bedroom property going for anything between £300,000 to well over £1 million.

Three-bedroom properties are typically the most expensive, with some new-builds costing upwards of £3 million. Older, four-bedroom properties typically offer the best value, with average sale prices starting at £520,000 – although this may indicate a shortage of properties of this size.

Average rental prices and potential yields

Before investing in a property in Shoreditch it’s important to understand what tenants could be paying each month and the potential yields you could receive.

The current average rental value sits at £752pw, with prices ranging anywhere from £230 to £2,300pw.

Studio flats average between £230 to £350pw, one bedroom prices average £395 to £850pw, while a three bedroom property could cost anywhere between £595 to £1950pw.

Shoreditch sits on the edge of Hackney - on the cusp of the capital’s financial district, so the yields tend to be quite strong. As of the start of 2020, expected yields range between 3-4%.

Why invest in buy-to-let in Shoreditch?

Shoreditch has a lot going for it in terms of location, with Liverpool Street only a short walk away, along with Spitalfields Market, Boxpark Shoreditch and Brick Lane. There is an abundance of bars, cafés and restaurants to choose from, offering a fantastic range of cuisines from around the world.

The local culture scene is one of London’s most vibrant, with the Rich Mix cinema, Whitechapel Gallery and Dennis Severs’ House all close by.

Professionals working in the city have flocked to Shoreditch and Hackney over the past 10-15 years, which has transformed the area and made it a far more attractive place to live.

Bus routes run into the city and onto places like St Pauls, Farringdon, the Strand and the West End. London Overground trains operate from Shoreditch High Street train station and take passengers to Canada Water, West Croydon, Shepherd’s Bush and Clapham Junction.

What to look for in a buy-to-let property

Whether it’s your first time investing in a buy-to-let property, or you are looking to expand your portfolio, it pays to be aware of what to look out for before spending your money. These are a few things to consider when investing in buy-to-let property:

  • Do your Research: Use information similar to what we’ve provided above and get in touch with local agents who know the area and can provide up-to-date expertise.
  • Look for Strong yields: A buy-to-let property should be an investment that offers good financial rewards so ensure the area you invest in is trending upwards. Shoreditch yields are between 3-4% which is strong for London.
  • Find a Good mortgage: Make sure you get the best possible buy-to-let mortgage deal available so you can continue to enjoy the yields produced over the coming years.
  • Account for additional costs: You will have more to pay beyond monthly mortgage instalments. There are also additional tax, maintenance and agents fees to consider.
  • Find a Property Management Company: One thing Landlords underestimate is the benefit of a Property Management Company. Property Management Services handle all the legal aspects of dealing with tenants and maintaining a property. This typically means less chance of tenant turnover, fewer legal problems, lower maintenance costs and timely rental payment. This can make the buy-to-let process a whole lot simpler.

Visit Our Landlords Page to find out why you should choose Base Property Specialists to let and manage your buy-to-let property in Shoreditch.