-
Census 2021 Data -
Homes & Property -
Law and Order -
Jobs & Economy -
Learning & Schools -
Essential Services -
Travel & Transport -
Local Amenities -
Leisure & Recreation -
Environment
Yield
Angel Way, Romford, Greater London
RM1 1AA Havering London Boro
This section gives the estimated property yield for the postcode based on our own unique algorithms, comparing it to the national average. We analyse gigabytes of data to explore why yields might be higher, lower, or in line with expectations. From local market trends to demand and property types, the data paints a clear picture of investment potential in RM1 1AA.
Estimated yield for property investors
6.4%
Yield
The estimated yield for the RM1 1AA postcode area is 6.4%, which is higher than the national average yield of 3.8%.
Summary
Property yields in RM1 1AA are lower than average, which might reflect a more mature or stable market where opportunities for high returns are limited.
The combination of lower yields and higher levels of crime might indicate that the area is significantly less desirable for high-return investments due to its lack of safety. However, it could still appeal to those seeking stable, long-term growth.
The urban nature of RM1 1AA suggests that the area is well-connected and densely populated, which typically correlates with strong rental demand and potentially higher yields.
With a lower rate of home ownership, the rental market in RM1 1AA is likely more active, offering greater opportunities for investors to capitalise on demand.
Despite the urban appeal, a lower safety score might deter some potential tenants, which could impact rental demand and yield stability.
The economic stability in RM1 1AA, indicated by moderate to high income levels and lower unemployment, bodes well for both property values and rental yields, as residents are more likely to afford stable housing.
Factors affecting yield in RM1 1AA
Understanding property yield involves considering various factors like affordability, income, and crime rates. These elements influence rental demand, property values, and ultimately, the return on investment.
Property Yield (%)
This is the rate of return on a property investment, expressed as a percentage of its value. Higher yields in RM1 1AA generally point to better investment potential, influenced by rent prices and local demand.
Property Affordability
Affordability measures the relationship between property costs and local incomes. Less affordable areas might see rent increases that boost yields, but the reduced buyer interest could impact long-term property values.
Rental Affordability
This assesses the portion of income households allocate to rent. Excessive rent costs in RM1 1AA may suppress tenant demand and decrease yield, while affordable rents are more likely to secure long-term tenants, stabilising yield over time.
Household Income
Higher household incomes can support higher rents, leading to potentially better yields. But in affluent areas, the increased property prices may reduce the yield percentage, even with solid rental income.
Urban Location
Urban areas usually offer higher yields due to rental demand, especially in cities with a youthful, mobile population. Yet, the elevated property prices in these areas can reduce the yield percentage, even with strong rental income.
Employment Score
High unemployment often signals an unstable economy, which can decrease rental demand and raise vacancy rates, thereby reducing yield. Low unemployment, on the other hand, usually points to a stable economy, enhancing rental demand and yields.
Outright Ownership
High levels of outright home ownership often indicate a settled community with reduced rental demand, which could lower yields. In contrast, areas with fewer outright owners may see higher rental demand, potentially boosting yields.
Crime & Safety Levels
High crime levels can discourage renters, decrease property values, and result in lower yields. In contrast, low crime rates make an area more desirable, driving up rental demand and property values, which can enhance yields.
Best Performing Yields
The following postcodes within the RM1 location current have the highest performing yields:
Methodology
Our property yield estimates are derived from a custom algorithm built by PostcodeArea that combines data from the Census 2021 and other reliable third-party sources.
This algorithm evaluates several key factors - including affordability, rental affordability, household income, urbanisation, unemployment rates, property ownership levels, and safety. We do this by assigning weighted scores to each factor. These factors are chosen for their relevance to property investment, with the yield percentage itself carrying the most weight due to its direct impact on potential returns.
The algorithm also incorporates conditional logic to assess how different combinations of these factors might influence property yield. For example, a neighbourhood with high rental affordability and strong income levels might indicate robust rental demand, leading to higher yields.
Conversely, areas with high unemployment and low income could see reduced rental demand, potentially lowering yields.
By considering these interactions, the algorithm provides a more nuanced estimate than simple averages or single-factor analyses.
It's important to note that these yield figures are general estimates intended as a guide rather than precise calculations. While the algorithm offers valuable insights based on historical and statistical data, it may not fully capture the unique aspects of each neighbourhood or current market conditions.
Investors should use this information as a starting point for further analysis and consider it alongside other factors such as market trends and personal financial goals.
