London commands the highest rents in the UK for both residential and commercial property. This is thanks to its status as the capital of the country, a major financial and economic centre and a thriving and busy hub of human activity. However, London is a big, diverse city and there is a lot of variance in rental levels between different areas. Some areas stand out as those that command the very highest rents.
Of course, there is a lot more to choosing a good property investment than just picking the area with the highest rents. Many other factors come into deciding how profitable and stable an investment is likely to be, and there is always an element of risk. Nonetheless, high-rental areas can make for very appealing starting points when you look into a residential property investment in Manchester.
Mayfair
With a thriving market largely composed of commercial property Mayfair commands some of the highest rents not just in London but in the world. Once a more residential area than it is today, high demand and a bustling retail sector have seen former residential buildings converted into offices and other business premises. Shops, restaurants and luxury five-star hotels are very much in evidence, as well as offices. Some residential properties can still be found amongst the businesses, however, and these also command high rents. The average Mayfair home brings in a gross rent of £1,256 per week, and the full range of property types vary between less than £400 per week right up to £4,000.
Knightsbridge
With a long-established history of playing host to wealthy individuals and prestigious businesses such as Harrods, it is entirely unsurprising that Knightsbridge brings in some of the highest rental yields in London. As with Mayfair, it is a popular shopping district, but Knightsbridge has avoided moving towards a predominantly commercial property market in quite the same way. Instead, it continues to offer a mixture of commercial and residential properties. Rents for both are attractively high, with Knightsbridge rental properties in the residential sector commanding an average of £2691 per week. Due to the wide variety of properties available, an especially wide variety of rental prices can be seen. In the residential sector alone, these can be as little as £350 per week or reach levels of up to £25,000 per week.
Kensington
Another thriving commercial area but with a strong residential market as well, Kensington is an extremely popular district of London. Densely populated and with high demand for all types of property, the combination of a thriving retail sector and other attractions such as Kensington Gardens and the museum district serve to drive its popularity with residents and tourists. This large number of people, both living in and visiting the district, in turn forms a key factor in maintaining Kensington’s popularity with businesses. Kensington residential properties can command rents ranging from £275 to £4,500 on a weekly basis. The average Kensington home commands a rental value of £938 per week.