May 23 2013 Latest news:
Melissa York, Reporter
Thursday, August 23, 2012
Property rents in Newham saw the largest increase in London last year.
New research by property consultants CB Richard Ellis Group (CBRE) reveal that rental prices grew by 39 per cent over the year amounting to nearly £1,700 per month on average.
Newham tops the survey ahead of the City of London which recorded a 32 per cent growth attributed to a small number of exclusive new penthouses in the area.
Other east London boroughs also saw significant growth with Redbridge up 28 per cent, and Tower Hamlets up 18.5 per cent.
But CBRE recorded that house prices have not increased at the same pace meaning landlords are seeing good returns on their property.
This has lead to Newham also topping the table for rental yields with an average 9.2 per cent return on residential investments, followed by Redbridge with 8.5 per cent, and Barking & Dagenham with 7.9 per cent but this is down from 3.3 per cent a year ago.
Jennet Siebrits, head of residential research at CBRE, accredits the increases to regeneration in Newham, accelerated by the Olympic Games, improving infrastructure, job opportunities, and delivering new cultural and sporting facilities.
He also noted that with the youngest population in London - 41 per cent of residents are under 25 - the area is anticipated to appeal to young professionals in the future.