Rental properties on cycle tracks command higher returns for landlords
- 22nd April 2022
- Landlord Property News
Benefits of living along cycle routes include lower pollution levels
London rental properties situated in close proximity to cycle routes generate returns above the market average, according to new research.
Analysis from Boomin shows rent paid for properties close to a cycle lane is 20% higher than the current London average. Properties close to cycle lanes command an average rent of £2,157, compared to the London average of £1,804.
London’s six main cycle routes pass through 14 London boroughs and 43 separate postcodes. The route between Kentish Town and Elephant and Castle provides the greatest premium, over 35% higher per month than the London average.
The route between Tower Hill and Lancaster Gate is the next highest rental price premium at £465 per month. Wandsworth to Westminster (£379), Stratford to Aldgate (£246), Merton to the City (£228) and Tottenham to the City (£227) also provide healthy premiums. One suggestion is that a cycle track near a property attracts young professional renters who are willing to pay more for their properties.
The cost of purchasing a property near a cycle track is also 7% higher than the London average (£700,000 vs £654,000). The most affordable route is between Tottenham and the City at £643,439 on average, almost £50,000 less than along the areas of Kentish Town to Elephant and Castle.
As well as benefitting landlords seeking higher returns, the benefits of living close to a cycle track are numerous. Lower pollution levels, avoiding congested underground trains and enjoying a safe route to work is a premium worth paying for many prospective renters.
Since the pandemic, many Londoners have taken up cycling. Restrictions placed on public transport encouraged 52% of Londoners to seek greener methods of travel, including cycling.
Only 39% used public transport for their commute even after lockdown restrictions were lifted. Boomin research also found 73% of London homebuyers and tenants continue to prioritise cycling as a means of transport now.
Stephen Ludlow, Chairman at ludlowthompson, said “Buy to let landlords looking for their next opportunity should consider properties near cycle lanes.”
“Continued investment in London’s cycling infrastructure will have the benefit of making the city safer for cyclists and therefore more attractive to young professional renters.”
We received 653 5-star Google reviews in 2020.
6,580 positive AllAgent reviews – Top 5 Agent in the UK (2020).
ludlowthompson staff are measured by how our customers rate them via 1,000s of questionnaires.
Every single questionnaire is read by Stephen Ludlow and David Thompson.
Clare M via Google Reviews:
"The ludlowthompson maintenance team were extremely helpful when I first let out my flat. I needed several updates to get my flat safety compliant. The team helped to find suitable contractors to carry out the work which was done promptly and they gave me estimates of the fees upfront. A very professional service."
Andy M via Google Reviews:
"Effective tenant liaison and property management. I had the pleasure of dealing with the team who were always swift to act on items and resolve questions. There was very efficient communication by email and phone and no difficulties encountered over a three-year tenancy."
Buy to let landlords looking for their next opportunity should consider properties near cycle lanes
FREE & INSTANT PROPERTY VALUATION
IN JUST 60 SECONDS