London, E14 9QU | Investment Property for Sale | VES-E14-001

Opportunity to purchase an apartment in East London generating £27,600 rent pa and a gross yield of 5.5%

£500,000

Apartment

VES-E14-001

INITIAL INVESTMENT

£233,400

GROSS RENT / YIELD

£27,600 / 5.5%

NET RENT / YIELD

£17,239 / 3.4%

ADD TO FAVOURITES

Above average yield

Through our expertise and research, we have found that this property is above the average of this location based on data from REalyse, PropertyData and Zoopla

The higher the yield the stronger the return on investment.

The property

TENANCY

Tenanted

TENURE

Leasehold

SERVICE CHARGE

£3,960

3 bedrooms

2 bathrooms

1 reception room

802

Fully Furnished

Leasehold information

  • Length of lease: 99 years
  • Start of lease: 2006
  • Ground rent: NIL

The listings particulars haven't yet been reviewed by the vendor and are therefore not final.

Market Trends

Sales Trends

  • Prices in E14 have increased 26% over the last 5 years (-1% over the last 12 months) and are £469k which varies by property type (£365k for a 1-bed flat to £766k for a 5-bed terraced property (this area ).

  • On average, there have been 122 properties sold per month in the area in the last 12 months.

  • In comparison, prices in the wider East London postcode area are £445k (0% over the last 12 months) and range between £336k for a 1-bed flat to £1.94m for a 5-bed detached property.

Rental Trends

  • Rents in E14 are now at £1,850 per month (-3% over the last 12 month). On average, there have been 470 properties listed for rent per month in the area in the last 12 months.

  • Given prices in the area, gross yield is currently 3.7% which is lower than the national average of 4.7% and higher than the wider E area of 4.2%.

  • This property is currently achieving a gross yield of 5.5% which is 33% higher than the area (based on information supplied by the seller)

Source: REalyse - 16/04/2019

Tenancy

RENT

£27,600 p.a. / £2,300 pcm

TENANCY DEPOSIT

£2,300

TENANCY TYPE

AST

TENANCY AGREEMENT STARTED

31 months ago

TENANCY AGREEMENT ENDS

Periodic

Floorplans

Documents available on request, please contact for viewings or further questions.

The information relating to the property is supplied by the vendor and the latest available at the date of listing.

Certain information may expire or become inaccurate over time and should be verified by the purchaser’s solicitor.

Financials

VIEW FINANCIALS WITH

Personalise the financials

Edit our market average financial assumptions to see every property using your financial strategy.

Sign In

 or 

Sign Up

 to edit financials 

>

Rental Income

GROSS RENT PER ANNUM

£27,600

Equivalent of £2,300 per calendar month (PCM).

GROSS RENTAL YIELD

5.5%

Gross rent per annum divided by the purchase price.

NET RENT PER ANNUM

£17,239

Gross rent per annum minus fully managed operating costs.

NET RENTAL YIELD

3.4%

Gross rent per annum minus fully managed operating costs divided by the purchase price.

FULLY MANAGED OPERATING COSTS

£10,361

The total estimated sum of expenses calculated annually assuming a fully managed service.

Click to understand assumptions.

Disclaimer

All financial information is provided as a guideline only, is based on estimates and assumptions and is subject to change. Buyers are advised to seek independent financial advice. Capital at risk.

About Tower Hamlets, E London

  • Tower Hamlets is located east of the City of London and north of the River Thames in East London and includes the postcodes E and EC.
  • The area comprises of 20 districts such as Bow, Aldgate, Canary Wharf, Stratford, Leyton, Poplar, Hackney, Olympic Park.
  • It is also home to a number of famous tourist attractions Tower of London, Tower Bridge, Columbia Road Flower Market and Billingsgate Fish Market.
  • Canary Wharf is located on the Isle of Dogs in East London and is one of the leading financial districts in the United Kingdom. It primarily consists of modern buildings and is one of London’s newest areas, containing many of Europe’s tallest buildings.

Economy

  • 3rd highest economic output of any local authority area in the UK, next to Westminster and the City of London.
  • In 2015, the borough’s economic output was around £29 billion – accounting for 2 per cent of the UK economy.

Population

  • Continues to be one of the fastest growing, youngest, and most diverse populations in the UK - almost half are aged 20-39 (46%).
  • Median age in 2017 was 31.0 years which was the 4th youngest LA in the UK. The median age was 35.1 in London, 39.8 in England and 40.1 in the UK.
  • Population is 308,000 and is projected to reach 365,200 by 2027 – equivalent to around 15 additional residents per day for the next ten years.
  • Since 1986, the population has more than doubled – making Tower Hamlets the fastest growing local authority in the UK.

Households

  • Over 54,000 new homes are expected to be built in the borough by 2030/31.
  • The fastest household increase of all LA’s in England & Wales - +29% between 2001 (78k) and 2011 Census (101k households).
  • The number of households is projected to reach 160k by 2028 (28k over the next decade) from 134k in 2018.
  • There were 101,247 households recorded at 2011 Census, a 29% increase on 2001.
  • The borough has been significant change in the borough’s tenure profile. Around 39% of all households are in private rented accommodation (tax records for 2017 suggest the sector accounts for 39% of the housing).
  • Tower Hamlets accommodates an estimated 12% of all student accommodation in London. The most recent survey data available from 2015 estimates there are approximately 7,000 student bed spaces in the borough, the third highest proportion after Camden and Islington.

Businesses

  • The borough has 16,800 businesses (+55% in the last 5 years), 278,000 jobs and is home to some of world’s largest financial institutions (March 2017)
  • The borough has a wide range of local businesses including small family companies, creatives, start-ups, light manufacturers and small-to-medium-sized enterprises – 98% of local enterprises are small businesses which employ fewer than 50 people.
  • Employment is dominated by the finance industry. 44% of jobs are concentrated in Canary Wharf and 26% are in the finance and insurance industry, making it the borough’s largest employment sector.

Connectivity & Transport

  • The borough’s overall connectivity is high with its surrounding areas.
  • The borough is well served by several train networks and has 31 public transport stations (3 mainline, 12 underground, 16 DLR) and will have, in 2018, two Elizabeth line (Crossrail) stations at Whitechapel and Canary Wharf.
  • The majority of routes are east west in orientation. However, the Overground, parts of the Docklands Light Railway (DLR) and the mainline are north south. These lines link the borough with destinations, such as, central London, Heathrow Airport in the west, Cambridge to the north east, Southend in the east and to Lewisham as well as Crystal Palace in the south.

Prices

  • Prices have decreased -3% over the last 12 months and are now £463,000. On average, there are 239 sales per month (61 sales recorded in Feb 2019).
  • Rents have decreased -4% over the last 12 months and are now £1,800. On average, there are 841 listings per month (946 in Feb 2019) which has decreased from 2468 in Aug 2016. Gross yield is 4.2% have increased over the last 12 months versus 3.6% in Feb 2018.

Blackwall Way,

London,

Greater London,

England,

E14 9QU

What makes us different?

Vesta’s sole purpose is to make buying and selling rental property easy for both landlords and tenants.

Benefits include:

  • Buy tenanted property
  • Huge choice for all budgets
  • View property performance data
Learn more >

Questions?

Our sales team is standing by to help.

Important Note

All information contained in this website is provided as a guideline only, is based on estimates and assumptions, may not be accurate or complete, and is subject to change. We make no representations or warranties with regards to this information, expressed or otherwise. A buyer who relies on such information does so at their own risk. Buyers are advised to seek independent financial advice and should undertake their own due diligence.

Your capital is at risk. Property values may decline and the property might not be able to be rented at amounts sufficient to cover debt interest costs, operating expenses and liabilities, and might not result in a positive cash flow. Property is an illiquid asset and should not be viewed as a short-term investment.

In no event will we be liable for any loss or damage, including without limitation any loss or damage arising directly or indirectly out of or in connection with the use of this website and the information contained therein.

Copyright © 2019 Vesta Global Limited. All rights reserved.