Letting in Croydon.
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Landlords Guide to Buy-to-Let in Croydon
Investing and letting in Croydon
Investing in buy-to-let property in Croydon can be an interesting venture for potential landlords, but there are a number of key financial factors to consider before making the decision.
Average Rents
The average rents for 1 bedroom, 2 bedroom, and 3 bedroom flats in Croydon are £1,226, £1,567, and £2,198 respectively. This is lower than the average in London which are £1,500, £2,000, and £2,500 respectively.
Rental Yield
The average rental yield for 1 bedroom, 2 bedroom, and 3 bedroom flats in Croydon are 4.2%, 5.2%, and 5.9% respectively. Again, this is lower than the average in London which are 5.5%, 6%, and 6.5% respectively, however the area still has interesting potential for investment due to high rental demand.
Rental Demand
Rental demand in Croydon is strong, with the area currently having a vacancy rate of just 3.2%. This is lower than the average in London which is around 5%, indicating a higher demand for rental properties.
House Prices
The average house price for 1 bedroom, 2 bedroom, and 3 bedroom flats in Croydon are £316,933, £427,723, and £567,984 respectively. This is lower than the average in London, which are £450,000, £600,000, and £800,000 respectively, which is a positive sign for landlords looking for affordable house prices.
Top Financial Considerations
When investing in buy-to-let property, potential landlords should consider the following financial factors:
- Location – Location is key when it comes to buy-to-let investment, as this will have an impact on both rental demand and rental yield.
- Rental Yield – The rental yield should be assessed to ensure that the investment is viable and will generate enough income to cover the associated costs.
- Rental Demand – As mentioned above, rental demand should also be taken into account to ensure that the property is let in a timely manner.
Conclusion
Investing in buy-to-let property in Croydon can be a profitable venture for potential landlords given the high rental demand and relatively low house prices compared to London. However, there are a number of financial considerations to take into account, such as location, rental yield, and rental demand, to ensure that the investment is viable and will generate enough income to cover the associated costs.
Croydon’s Housing Market and Transport Links
The buy-to-let housing stock in Croydon could be a great opportunity for an investor looking to enter the buy-to-let market. With a variety of property types and sizes available, Croydon is an attractive option for those looking to invest in residential housing.
Housing stock
Croydon, has a diverse housing stock that ranges from Victorian terraced houses to modern apartment buildings.
The majority of the housing stock in Croydon consists of 1 and 2 bedroom flats and houses. Specifically, there are approximately 45,000 one-bedroom units, 35,000 two-bedroom units, and 15,000 three-bedroom units.
When compared to the overall housing stock in London, Croydon has a higher proportion of 1 and 2 bedroom units. The London average for one-bedroom units is around 43%, while in Croydon, it is around 47%. Similarly, the London average for two-bedroom units is around 40%, while in Croydon, it is around 37%. However, London has a higher proportion of three-bedroom units with around 17% compared to Croydon’s 16%.
In Croydon, there is a mix of old and new housing stock, with a good number of new build properties available. Major housing development projects are also being undertaken in Croydon, such as ‘Croydon Gateway’ and ‘Croydon Vision’ making Croydon an attractive option for potential landlords.
Transport links
Croydon is well-connected, with a number of train stops and major stations servicing the area. One of the biggest stations is East Croydon, which has frequent services to London and other cities. The commute times from Croydon to London are also competitive, making it a great option for those looking for easy access to the city.
Conclusion
Croydon is an ideal option for potential landlords looking to invest in residential housing. With a higher than average proportion of housing stock for rent, higher than average house prices, and great transport links, Croydon offers a great opportunity for those looking to enter the buy-to-let market.
The Demographics of Croydon's Population
Understanding the population of Croydon and its demographics is key to making a well-informed decision to invest.
Population
Croydon is the second largest London borough with a current population of 385,000 and is expected to exceed 430,000 in the next decade. This makes it larger than the average London borough, with a population growth rate that is higher than the London average.
The age of the population in Croydon is slightly below the UK average. The majority of Croydon’s population is between the ages of 20 and 44, with 24% of the population falling within this age range. This is higher than the UK average of 20%.
Employment & education rate
The employment rate in Croydon is slightly above the national average. According to the Office for National Statistics, the unemployment rate in Croydon was 5.7% in 2019 – compared to the UK average of 3.9%. Croydon also has a high rate of educational attainment compared to the UK average, with 35.5% of the population having a degree or equivalent.
Crime rates
Crime rates in Croydon are slightly higher than the London average, however there has been a steady decrease in crime over the past few years. According to Croydon Council’s crime statistics, from February 2021 to January 2021 there were 8,248 recorded incidents of crime in Croydon – this is lower than the London average of 8,788 recorded incidents.
Conclusion
Croydon is a population-rich area with a growing population, employment rate, education level and rental demand. It is also a relatively safe area with a decreasing crime rate. All of these factors must be taken into consideration when looking to invest in a buy-to-let property in Croydon.
Important Links for Landlords and Letting a Property
- Croydon Council Contact: 020 8726 6000, www.croydon.gov.uk
- HMO Licence Contact: 020 8726 6000, hmo@croydon.gov.uk, www.croydon.gov.uk/housing/hmo
- Council Tax Website: www.croydon.gov.uk/counciltax
- Civic Amenities Website: www.croydon.gov.uk/amenities
- List of Croydon Schools: www.croydon.gov.uk/schools
- Trading Standards Contact: 020 8726 6000, tradingstandards@croydon.gov.uk, www.croydon.gov.uk/tradingstandards
- EPC Register Contact: 020 8726 6000, epc@croydon.gov.uk, www.croydon.gov.uk/epcregister
- Waste Collection Contact: 020 8726 6000, waste.collection@croydon.gov.uk, www.croydon.gov.uk/wastecollection
- GSC Register Contact: 020 8726 6000, gsc@croydon.gov.uk, www.croydon.gov.uk/gscregister
- Postcodes in Croydon: www.croydon.gov.uk/postcodes.
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