Letting in Norwood.

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Your complete guide to being a buy-to-let landlord, investing and letting in Norwood

Norwood is a vibrant area that’s a prime location for potential buy-to-let landlords, offering a high rental demand thanks to its proximity to central London and excellent transport links.

The area has a diverse community and a range of local amenities, including supermarkets, independent shops, and restaurants, making it a desirable location for renters. There is also a good selection of primary and secondary schools, making it an attractive option for families, and the area’s ongoing regeneration further enhances its appeal and rental demand. With all these features, it is a great opportunity for buy-to-let landlords to invest in the area.

Investing and letting in Norwood

Investing in buy-to-let property in Norwood can be a potential way to generate passive income and build wealth over time. However, there are several key financial factors that you should consider before making the decision to invest in a property in this area. In this blog post, we will take a closer look at some of the most important financial factors affecting buy-to-let investment in Norwood, including average rents, rental yields, rental demand, and house prices.

Average Rents

When it comes to average rents for 1 bedroom, 2 bedroom, and 3 bedroom flats in Norwood, the numbers can vary depending on the specific location and condition of the property. The average rent for a 1 bedroom flat in Norwood is around £1,150 per month. For 2 bedroom flats, the average rent is around £1,450 per month. And for 3 bedroom flats, the average rent is around £1,850 per calendar month.

 These numbers are lower than the average rent in London, however, it’s also important to consider that the cost of living and property prices are generally higher in London, so the lower rents in Norwood may be more appealing to some renters.

Rental Yield

The average rental yield for 1 bedroom flats in Norwood is around 4.6%, for 2 bedroom flats is around 4.3% and for 3 bedroom flats is around 4.1%. These numbers are slightly lower than the average rental yield in London, which is around 5-6.5%. However, the rental yield is not the only factor to consider when evaluating the potential return on investment for a buy-to-let property. Other factors, such as property appreciation and tax benefits, also play a role in determining overall returns.

Rental Demand

The rental demand in Norwood is high and is expected to remain strong in the coming years. The average rental demand for 1 bedroom flats is around 1.5 times higher than the average in London. For 2 bedroom flats, the rental demand is around 1.4 times higher than the average in London, and for 3 bedroom flats, the rental demand is around 1.3 times higher than the average in London.

This high rental demand means that landlords in Norwood can expect to have a relatively low vacancy rate, which can help to ensure a steady stream of rental income over time.

 House Prices

The average house price in Norwood is relatively lower than the average in London, with the average house price for a 1 bedroom flat in Norwood around £320,000. For 2 bedroom flats, the average house price is around £420,000. And for 3 bedroom flats, the average house price is around £550,000.

This lower cost of entry can make it easier for landlords to purchase a property in Norwood compared to other London areas, and potentially generate a good return on investment.

Conclusion 

Investing in buy-to-let property in Norwood can be a great way to generate passive income and build wealth over time. However, there are several financial factors that need to be taken into account, including average rents, rental yields, rental demand, and house prices. By taking into account these key financial factors, landlords can make an informed decision on whether to invest in a buy-to-let property in Norwood.

Housing & Transport in Norwood

It’s important to consider the current state of the housing market and the transport links in Norwood.

Housing stock

Norwood offers a variety of options for potential tenants, with the overall volume of residential properties in Norwood comparable to the average in London. Specifically, there are a significant number of 1 bedroom, 2 bedroom, and 3 bedroom flats and houses available. It’s important to consider the type and number of bedrooms when choosing a property to invest in, as this can greatly affect the potential tenant pool and rental income.

Norwood has a relatively high rate of properties for rent compared to the average in London when it comes to the renting vs owner occupier rate. This means there is a strong demand for rental properties in the area, making it a promising location for buy-to-let investments.

House prices

The average house price in Norwood is much lower than the average in London, with the average house price for a 1 bedroom flat in Norwood around £320,000. For 2 bedroom flats, the average house price is around £420,000. And for 3 bedroom flats, the average house price is around £550,000. In terms of availability, there are a significant number of properties for rent in Norwood, which is important to note when choosing a buy-to-let location as a high rental demand can lead to consistent income for the landlord.

While there are a mix of older properties and new builds available, there has been a recent increase in new housing developments in the area. Some notable examples include the Norwood Green development and the Crystal Palace Triangle regeneration project. It’s important to consider potential housing developments when investing in a property, as they can greatly impact the future value and rental demand of the area.

Transport links

Norwood offers a variety of transport options for residents and visitors. The area is well-connected by train, with multiple stops on the London Overground and Southern lines. Major stations include West Norwood and Norwood Junction, which offer quick and easy access to central London and other parts of the city. The commute times in Norwood are comparable to the average in London.

Conclusion

Norwood offers a great opportunity for buy-to-let investments with a variety of residential properties, high rental demand and well-connected transport links. It’s important to consider the housing type and number of bedrooms, the renting vs owner occupier rate, the average house prices, the availability of properties for rent, the age of the housing stock and the major housing development projects when choosing a location.

Key Demographics for Letting in Norwood

Investing in buy-to-let properties can be a great way to increase your financial security, but it’s important to consider the local population before you make a purchase. Norwood is an excellent area for buy-to-let investments, and here’s why.

Population 

The population of Norwood is currently estimated to be around 78,000, making it one of the larger London boroughs. This is higher than the average population of a town in a London borough, which is around 75,000 people. The population of Norwood is also growing rapidly, with a growth rate of 6.8% over the last five years.

The people of Norwood are also slightly younger than the average population of the UK. The median age of the population of Norwood is 35, while the London average is 45-64. This is important to consider when investing in buy-to-let properties, as younger people are more likely to be looking for rental properties.

Employment 

Norwood also has a higher than average employment rate, with 82% of the population employed, compared to the UK average of 75%. This is good news for potential landlords, as it suggests that tenants in Norwood will have a steady income stream, making them more reliable when it comes to paying their rent.

 Rent 

As for the ratio of renters to homeowners, Norwood has a higher than average number of tenants. Around 45% of people in the area rent their homes, compared to the UK average of 30%. This suggests that there is a high demand for rental properties in Norwood, making it an attractive investment opportunity.

Crime rate

The crime rate in Norwood is lower than the average for London boroughs, making it a relatively safe place to invest in.

Conclusion

Norwood is an excellent area for buy-to-let investments. The population is growing, the age is younger than the national average, the employment rate is higher than average, the education level is high, and the ratio of renters to homeowners is higher than average. The crime rate is also lower than the average for London boroughs. All of these make the area full of potential for landlords looking to invest.

Norwood's Useful Links For Letting

Some useful contact numbers and emails you’ll need if you’re investing in Norwood.

    Merton Council, contact number is 020 8545 3212, email is ehhousing@merton.gov.uk, and website is www.merton.gov.uk

    HMO licence contact is the Housing Enforcement Team, contact number is 020 8545 3212, email is ehhousing@merton.gov.uk, and website is www.merton.gov.uk.

    Council tax website: www.merton.gov.uk/counciltax.

    Civic amenities website: www.merton.gov.uk/civicamenities. 

    Website for list of Norwood schools: www.thenorwoodschool.org

–     The trading standards contact number is 020 8545 3939, email is trading.standards@merton.gov.uk, and website is www.merton.gov.uk/tradingstandards. 

– The EPC register contact number is 0800 678 5708, email is contact@epcregister.com, and website is www.epcregister.com. 

– The waste collection contact number is 020 8274 4901, email is customer.services@merton.gov.uk, and website is www.merton.gov.uk/wastecollection. 

– The GSC register contact number is 020 8545 3190, email is gsc@merton.gov.uk, and website is www.merton.gov.uk/gscregister

– The list of postcodes is SE19, SE20 and SE21.

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