Investing in London property is a pretty good idea, according to a new report (and many, many graphs) from Douglas & Gordon’s asset management arm, with gross rental returns in prime central London outstripping ten year Gilts by 35% over the last 12 years. But the best returns are on the prime fringes: Southfields and West Putney deliver better rental yields than Chelsea of South Kensington.
Many local buyers, with their ears close to the ground, are, however, losing out by knowing too much, according to the report: “The irony is that it is Londoners, trying to catch the ‘top’, who sell and then regret. Whereas overseas owners, who know ‘less’ hold PCL for the long-term and benefit.”
The numbers have been