This property presents an intriguing opportunity for investors looking to capitalize on both immediate rental income and long-term development potential in an increasingly dynamic area of East London. Its strategic high-street location, coupled with a solid rental framework, positions it as a compelling choice for those with vision.
The ground floor features a retail unit, formerly utilized as a hairdresser, encompassing approximately 500 sq. ft. With A1 licensing already in place, this space provides flexibility for the new owner to lease out or establish their own business. Currently vacant, its prime position along Romford Road ensures substantial foot traffic, making it an attractive option for future tenants. The unit includes a small kitchen and bathroom, requiring minimal renovation before it can be occupied or rented out, with projected annual rental income estimated at £24,000.
Accompanying the retail space are two residential units. The ground floor 2-bedroom flat is tenant-occupied and generating £1,200 per month—though analysis indicates that adjusting the rent to align with current market rates could feasibly increase this income to around £1,800 monthly. This adjustment would enhance annual earnings to approximately £21,600 while also providing access to a spacious private garden ripe for development projects.
On the first floor sits a 3-bedroom flat under a 50-year lease; however, it currently does not yield any rental income. This arrangement offers potential buyers a unique avenue for value appreciation down the line.
In terms of investment metrics, the property is priced competitively and is projected to achieve an annual income of about £40,000 once adjustments are made. Presently offering an estimated yield of approximately 5.88%, there remains significant room for further enhancement through leasing the shop and adjusting residential rents.
What makes this property particularly noteworthy is its development potential. Initial consultations with architects indicate promising prospects of obtaining approval for the construction of two additional flats in the back garden area. Moreover, given the context of neighboring buildings that have successfully expanded vertically—combined with local council developments—there exists strong potential for constructing above the existing top-floor flat.
Valuation projections post-development suggest a possible increase exceeding £1 million in market value, alongside potential annual rental returns that could surpass £100,000—a significant financial incentive for investors aiming for double-digit yields.
Located strategically in Newham (E12), this site benefits from ongoing urban growth and revitalization initiatives within East London. With continual discussions regarding expanding Central London's footprint into E12 and historical price trends showing upward trajectories in similar areas
