An annual study by CIA Landlord has uncovered the true impact the Covid-19 pandemic has had on the UK housing market, identifying that the majority of London boroughs are unprofitable.

The research revealed that London’s profitability for landlords has decreased by 48% overall since January 2020.

Rising property prices and decreasing rental rates are squeezing profit margins for landlords, leaving 27 out of 33 London boroughs unprofitable in 2021.

The table below shows the most profitable London boroughs to become a landlord in 2021. 

Barking has been ranked as the most profitable borough with an average of £261 profit per month.

Table 3. Top 10 places to become a landlord in London based on average property price, mortgage amount, average rent and monthly costs vs profits.

*The monthly profit total has been calculated by taking the sum of the average rent, minus the monthly mortgage and monthly fees (£61.56 in England).

Barking was identified as the most profitable London borough with an average profit of £261.10, followed by Brent with £241.28 and Newham making an average of £183.48.

Barking, Brent, Newham, Westminster, Tower Hamlet and Southwark were identified as the only profitable London boroughs out of 33.