New research by Revolution Brokers has revealed which Crossrail stations currently make the best investment for buy-to-let landlords based on the average rental yield available in each station postcode.
Researchers analysed current rental and housing market data to find the average rental yield in each Crossrail station postcode, as well as looking at how this has changed when compared to the previous year.
The research shows that, on average, a buy-to-let investment within a Crossrail postcode will return a yield of 3.7 percent, with average profit margin increasing from 3.4 percent a year ago.
At 5.1 percent, Reading’s RG1 postcode currently ranks as the strongest area for a Crossrail buy-to-let investment. However, East London is also home to some of the strongest yields available along the Elizabeth Line.
The E16 postcode, home to the Custom House Crossrail station, is currently home to an average rental yield of 4.9 percent. A little further down the line, the E15 postcode is home to both the Maryland and Stratford stations, as well as a very respectable average rental yield of 4.8 percent.
Southall also boasts a current average rental yield of 4.8 percent, while Forest Gate and Canary Wharf rank high at 4.5 percent.
Other stations to make the top 10 best buy-to-let investments along the Elizabeth line at present include Whitechapel (4.4 percent), Woolwich (4.3 percent), Abbey Wood (4.3 percent), West Drayton (4.3 percent) and Manor Park (4.3 percent).
In contrast, the average yield is currently just 1.9 percent in the W1 postcode, home to the Tottenham Court Road and Bond Street Crossrail stations.
This heightened demand for rental properties, in particular, presents a great opportunity for buy-to-let investors, as demand for Crossrail rental homes is only going to grow now that the service is finally starting to run.