Revealed: London’s Top Areas for Home Improvement Projects
London has an extremely lucrative property rental market, and landlords that choose to invest in their portfolio will only see a greater return – especially if they have properties in any of the‘hotspot’ areas that we’re about to reveal. Of course, renovating comes with its own set of expenses, but when the work is carried out to a high standard it can add thousands to the market value of the property – and the landlord will benefit from both increased rental income, and a higher resale price.
Using data from Home, we have analysed average rental values in a selection of areas in London, telling you exactly where you should invest in the city if you want to make the most out of a renovation project. Find out how you can maximise your earnings as a landlord in London, and start your own renovation project with our team of trusted professionals.
1. Chelsea
Average rental value (per calendar month): £8,827
Bagging the top spot with an average rental value of £8,827 per calendar month, Chelsea is the most financially lucrative place to renovate for landlords in London. The area is best known for its high-brow culture, luxurious dining spots, and impressive amenities, and many of the streets in the borough are lined with traditional townhouses. While the average monthly rental income figure is around the £8k mark, this figure increases for properties with more than three bedrooms – and many house shares in Chelsea are four and five bedrooms.
2. Shepherd's Bush
Average rental value (per calendar month): £6,111
Shepherd’s Bush is the second rental hotspot, where a well-planned renovation project could yield an average monthly income of £6,111. This zone 2 borough boasts convenience for young professionals that head into the city for work, with plenty of transport links to choose from; multiple tube stations serve the area, including the Central, Circle, and Hammersmith & City lines. Many commuters choose the area as a base, opting for house share accommodation – so demand for modern, comfortable, low-maintenance properties is high.

3. Camden
Average rental value (per calendar month): £4,636
Camden has secured third place in our roundup of renovation hotspots for London landlords. It has to be one of the quirkiest boroughs in the city, and many of its inhabitants are involved in the arts or other creative industries. Camden is also home to many students, given its close proximity to University College London and University of The Arts London.
Other types of renters in the zone 2 borough tend to include working professionals and families, so there’s a clear opportunity for landlords to renovate and make the most out of the high demand for properties in the area – the average monthly rental fee is £4,636, so any kind of renovation effort would be worthwhile.
4. Kentish Town
Average rental value (per calendar month): £4,158
In fourth place, and generating an average rental fee of £4,158 per calendar month, we arrive in Kentish Town. Staying in zone 2, but still offering easy access to Central London, Kentish Town is an extremely sought after area amongst renters that want to make their budget go further. Property demand is high as a result, and a high-spec renovation will only help landlords to add to the value of properties that they have in the area.
It’s also a great place to sell rental properties, as many occupants include families that want a spacious forever home, while still having access to plenty of amenities; from schools to leisure centres.
5. Islington
Average rental value (per calendar month): £3,559
Islington completes our top five, where a well-renovated rental property could generate anywhere from £3,559 per calendar month. Given that the borough sits between zone 1 and zone 2, it offers unrivalled value for money for renters, and landlords can use this appeal to their advantage when they opt to renovate. Flats are the most common accommodation types available in Islington, but space limitations can be combatted by well thought out renovation projects; from configuring open-plan living and kitchen spaces, to making clever use of yard areas with rear home extensions.
Upgrading your property in Islington will boost its appeal to prospective tenants, and you’ll benefit from the consequent higher monthly rental fees.
Start your London home renovation with experienced experts
Here at We Love Build, we help landlords, homeowners and property developers to add more everyday value to their properties with our home renovation services. We offer a comprehensive design and build approach, including both pre-construction and construction services, taking your project from an initial idea to a functional, operational space.
If you’re a landlord in London and you’d like to benefit from the value that a renovation project could have, simply contact us to book your free design consultation today. In the meantime, take a look at our latest residential renovation projects to understand exactly how we could help.
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