Investing in buy-to-let property in Lambeth can be a great opportunity for potential landlords looking to generate passive income and build wealth over time. However, it’s important to understand the key financial factors that will affect the success of your investment. This blog post will provide an overview of the average rents, rental yields, and demand for rental properties in Lambeth, as well as the average house prices for different types of housing. We’ll also cover some of the top financial considerations you should keep in mind before buying a buy-to-let investment. 

Rent prices and rental yields

The average rents for 1-bedroom, 2-bedroom, and 3-bedroom flats in Lambeth are currently around £1,500, £1,800, and £2,300 per month respectively. These prices are slightly lower than the average in London, which are around £1,500, £2,000, and £2,500 per month respectively, which is great for bringing in renters looking for more affordable rental properties. 

Rental yields in Lambeth come in at 4%, 5% and 6% for 1-bedroom, 2-bedroom, and 3-bedroom flats respectively. While this is lower than the London average, the area still has interesting potential for investment due to high rental demand.

 House prices

The average price for a 1 bedroom house in Lambeth is currently around £450,000, £650,000 for a 2 bedroom house and the average price for a 3 bedroom house is around £800,000. These prices are slightly lower than the average in London, which are around £500,000, £700,000, and £950,000, respectively. 

Key financial factors

There are several key financial factors to consider before making the decision to invest in a buy-to-let property. These include:

• The expected rental income 

• The purchase price of the property

• The cost of any necessary repairs or renovations 

• The cost of property management – i.e. the cost of advertising for tenants, conducting background checks, and collecting rent.

• The tax implications – i.e. rental income tax, capital gains tax, and stamp duty.

Conclusion

Investing in buy-to-let property in Lambeth can be a great opportunity to generate passive income and build wealth over time. However, the key financial factors that will affect the success of your investment, such as rental yields, the demand for rental properties, as well as the average house price are worth considering.

For any potential landlord looking to invest in buy-to-let properties Lambeth offers a range of residential properties and an attractive location for renters.

Housing stock

In Lambeth, there is a mix of 1, 2, and 3 bedroom flats and houses available, with the majority of properties available 2 bedroom flats and houses, followed by 1 bedroom and 3 bedroom properties. Data from the Office for National Statistics (ONS) shows that approximately 60% of properties in the area are occupied by owner-occupiers, with the remaining 40% for rent, which is slightly higher than the national average, where around 35% of properties are for rent.

The average price for a 1 bedroom flat in Lambeth is around £450,000, while the average price for a 2 bedroom flat is £600,000 and for a 3 bedroom flat is £850,000, which is slightly higher than the UK average. According to the ONS, there are around 20,000 residential properties available for rent in Lambeth.

The age of the housing stock in Lambeth varies, with a mix of older properties and new builds, with around 10% of properties built in the last 10 years. The age of the housing stock is worth considering when choosing a buy-to-let location as new builds may come with warranties and energy efficiency features that could attract tenants and reduce maintenance costs. 

Transport

The London Underground is the primary mode of transport in Lambeth, with several stations located within the area, such as Lambeth North, Vauxhall, and Brixton. The Northern Line runs through Lambeth, with stations at Kennington, Elephant & Castle, and Waterloo, all of which provide quick and easy access to the rest of London. The Bakerloo Line also stops at Lambeth North, providing connections to Paddington, Oxford Circus, and other key destinations.

Lambeth is also served by a number of bus routes. The area is well-connected to other parts of London, with bus routes operating to and from destinations such as Victoria, Oxford Street, and King’s Cross.

For those who prefer to travel by train, Lambeth is also home to two major railway stations: Waterloo and Vauxhall. Waterloo is one of the busiest railway stations in London, with regular services to destinations across the UK, including Bristol, Southampton, and Portsmouth. Vauxhall Station is also a key transport hub, with regular services to destinations such as Clapham Junction, Battersea, and Woking.

Lambeth has relatively short and manageable commute times for residents. With a number of different trains, buses and bike or car sharing schemes, as well as the proximity to the city centre, residents of Lambeth are able to travel to their destination quickly and efficiently. Compared to the average in London, Lambeth’s commute times are relatively short and manageable.

Conclusion

Lambeth is an ideal location for renters who need quick and easy access to the rest of London and beyond. With excellent public transport links, residents of Lambeth can easily get around the city and make the most of all that London has to offer. When considering investing in buy-to-let housing stock in Lambeth, it is important to have a clear understanding of the local housing market, including the type and volume of properties available, the average house prices, the renting vs owner-occupier rate.

Lambeth is a London borough located in the south of the city, with a rich history dating back to Roman times. The area is home to many famous landmarks, including the Houses of Parliament, the London Eye, and the Imperial War Museum. Lambeth is also known for its vibrant arts and cultural scene, with many theatres, galleries, and music venues located in the area.

Population 

Lambeth is a relatively large borough with a population of around 300,000 residents. This is slightly below the average for a London borough and the population is steadily growing. This is good news for potential investors in the buy-to-let market as it indicates a strong demand for rental properties in the area.

The borough has a relatively young population, with a median age of around 34 years old. This is slightly lower than the London average of 38, and indicates a large population of working-age individuals who are likely to be in need of rental accommodation.

Employment rate & Education

The employment rate in Lambeth is also relatively high, with around 60% of the population in employment, which suggests that there is a strong demand for rental properties from working individuals.

Lambeth has a relatively well-educated population. Around 40% of residents have a degree level or higher, which is above the UK average of 38%. There is also a large student population with several universities and colleges located in the area, including University of the Arts London and Lambeth College. This is a positive indicator for the buy-to-let market as students are often in need of rental accommodation.

Crime rate

When it comes to crime, Lambeth has a relatively high crime rate compared to the UK average. However, it’s worth noting that crime rates vary considerably across the borough and it’s important to research crime rates in specific areas before investing.

Conclusion 

Lambeth is a large London borough with a growing population, a young and educated population, a high employment rate, a large student population, and a high volume of renters. These factors, combined with the area’s rich history and cultural scene, make it an attractive option for potential buy-to-let investors. However, it’s important to consider crime rates in specific areas and to do thorough research before making any investment decisions

Council name: London Borough of Lambeth, Contact number: 020 7926 1000, Email: contactus@lambeth.gov.uk, Website: https://www.lambeth.gov.uk/ 

HMO licence contact: Lambeth Housing Licensing Team, Contact number: 020 7926 1000, Email: housinglicensing@lambeth.gov.uk, Website: https://www.lambeth.gov.uk/housing-licensing 

Council tax website: https://www.lambeth.gov.uk/council-tax 

Civic amenities website: https://www.lambeth.gov.uk/civic-amenities 

Website for list of Lambeth schools: https://www.lambeth.gov.uk/schools-and-education/schools-in-lambeth 

Trading standards contact number: 020 7926 6000, Email: trading.standards@lambeth.gov.uk, Website: https://www.lambeth.gov.uk/business/trading-standards 

EPC register contact number: 0800 408 1474, Email: info@epcregister.com, Website: https://www.epcregister.com/ 

Waste collection contact number: 020 7926 1000, Email: recyclingandwaste@lambeth.gov.uk, Website: https://www.lambeth.gov.uk/recycling-and-waste 

GSC register contact number: 020 7926 1000, Email: gsc@lambeth.gov.uk, Website: https://www.lambeth.gov.uk/register-a-gas-safety-certificate