Buy in Clapham or Brixton?
The disparity between a SW2 and SW4 post code is increasing?
Buying a terraced house in Clapham is now almost unaffordable and yet you will see property values have averaged an annual 6.74% increase this year. As an investment, yields in Brixton have achieved much greater returns and coming from a lower cost base, I think will give the investor more value. So which types of properties in Brixton have achieved the best returns? Interestingly it is the 3 bedroom flat market which is top. Average value at £595,600 with an average rent of £2970 gives a return of 5.98%! This compares to an average yield for a 3 bedroom house of 4.97%. In SW4 again it is the 3 bedroom house which gives the best results. Average value of £880,000 with monthly rents of £3650 gives a 4.9% yield.
London borough Brixton SW2 Clapham SW4
| Average Value | £496,886 up 5.22% | £843,777 up 6.74% (12m) |
| Flats | £405,081 up 4.96% | £566,979 up 5.36% (12m) |
| Terraced | £738,939 up 7.41% | £1,344,463 up 7.95% (12m) |
| Semi D | £914,410 up 0.66% | £1,808,612 up 0.66% (12m) |
| Average Rent | £1,822pcm | £2,141pcm |
| Average gross yield | 4.4% | 3% |
| Number of transactions | 542 | 445 |
Interesting, the gap between both postcodes is increasing but not dramatically so and staying fairly constant. The difference in value has widened by 20% over 6 years. Courtesy of Zoopla
UK ‘ Buy to Let’ market in 2015
