Top property investment hotspots investors should watch out for in 2025

2025 is already here and leading property portals such as Zoopla and Rightmove have forecasted this year to be a buyer’s market after a successful wrap of 2024. With more housing stock entering the market and competitive pricing, savvy investors have a unique opportunity to secure high-potential properties across thriving and emerging neighbourhoods.

Whether you seek attractive rental yields, capital growth, or a combination of both, London and its surrounding areas offer plenty of exciting options. Here are some compelling neighbourhoods you should have on your list if you decide to invest in a property this year.

Bow, East London

Conveniently close to popular East London districts like Canary Wharf and Stratford yet more affordable than its neighbours, Bow is an emerging property destination in Zone 2 with quick commute links to the City and London’s top universities. Located in the heart of East London’s Golden Triangle, Bow Green by Berkeley is a brand-new scheme offering gross rental yields of up to 6.6%, with an average growth in sales value of 44% in the last five years.

Southall, West London

Although a Zone 4 location, Southall benefits from a fast commute to central London and Heathrow Airport in under 15 minutes, which has been made possible after the introduction of the Elizabeth Line. This welcome transport upgrade, coupled with several regeneration projects in the area has transformed Southall into an investment and rental hotspot. With yields of up to 6% and a 12% growth in annual rents last year, Southall, and developments like The Green Quarter are attracting immense investor interest.

Hayes, West London

Another beneficiary of the Elizabeth Line, Hayes is now just 20 minutes from central London’s Bond Street and less than 10 minutes to Heathrow Airport. The scenic views of the Grand Union Canal and accessibility to several tech companies like Sony, Amazon, Microsoft, Nvidia and others across the M4 and M40 corridors have led to extensive regeneration in the area. Hayes Village by Barratt London is developed on the area’s former Nestle site offering upscale amenities with yields of up to 6%.

West Ham, East London

West Ham in East London is just a few minutes from Canary Wharf, Stratford and popular attractions like the Queen Elizabeth Olympic Park, Victoria Park and O2 Arena. The area is undergoing a development renaissance and TweleveTrees Park is right at the centre of this transformation. With a brand-new, on-site entrance to West Ham Station, this Berkeley development will facilitate quick access to five rail lines and is expected to generate yields of up to 6%.

Woolwich, South East London

As a riverside location by the Thames, Woolwich was popular for its glorious maritime history and scenic views. However, with commute time to central London cut by nearly half, courtesy of the Elizabeth Line, this Zone 4 neighbourhood has caught the interest of many families, professionals and students looking to buy or rent.

Royal Arsenal Riverside is an exceptional development in Woolwich, featuring an on-site Elizabeth Line Station, as well as an on-site branch of Benham & Reeves, helping landlords at the development generate attractive yields. Lombard Square in neighbouring Plumstead is another exciting Berkeley development with immense investment potential.

Enfield, North London

Located a little over 10 miles north of central London, Enfield is an upcoming town, proving to be an oasis for nature lovers who enjoy the sunny English countryside. A former hunting ground of Britain’s royal family and aristocrats, Trent Park by Berkeley retains the original legacy of the area’s period architecture in its new properties, which are surrounded by over 400 acres of open parkland. With quick Underground connectivity to central London in less than half an hour and well-regarded schools in the vicinity, the area offers yields of over 5.5%.

Finsbury Park, North London

North London is home to some of the city’s most leafy neighbourhoods and Finsbury Park offers waterfront views and extensive parkland, which are rare sights for a Zone 2 location. Extensive regeneration in the area has led to the development of many residential properties and Woodberry Down is an example of peaceful parkside living with quick commute access. Just a three-minute walk to Manor House Station from where King’s Cross is only a six-minute train ride away, this development offers yields of up to 5.7%.

Home to sought-after neighbourhoods like Muswell Hill, Highgate and Shepherds Hill, Haringey is a verdant Zone 3 area in North London. In addition to beautiful Art Deco and Grade II-listed buildings, the area is well-connected to multiple Tube stations that run direct services into the city. Berkeley’s Alexandra Gate (formerly called Clarendon), beside the iconic Alexandra Palace and its 200-acre vast Alexandra Park is within walking distance to four key Zone 3 stations and just 10 minutes from King’s Cross. Investors can expect yields of up to 5.5% in Haringey.

Kidbrooke, South East London

Located near the borders of Greenwich, areas like Blackheath and Kidbrooke have taken the property market by storm with large-scale regeneration efforts and infrastructure upgrades. Surrounded by 86 acres of parkland and the wetlands of Cator Park, Kidbrooke Village by Berkeley offers unparalleled commute ease with an on-site railway station. Just 16 minutes from London Bridge, this Zone 3 development offers world-class amenities, including pubs, cafes and many other leisure facilities owing to which investors and landlords can expect yields of over 5.4%.

While these areas are among the top residential and rental destinations in and around the UK capital this year, Benham & Reeves with its 21 local branches and over 65 years of estate and lettings legacy is well-equipped to meet all your London property needs. Contact us to learn more about investing in high-yielding London properties.

Source for average rental yields and property prices: Dataloft, ONS