The Areas of London With the Highest Rental Yields and Rents
London's property market can provide rental yields above 5.5% for landlords, despite the high local property prices.
As a major international city, it continues to be a compelling option for buy-to-let investors, offering a unique blend of stability, intense demand from homeowners and tenants, and potential for high returns and future growth.
Our analysis of rental yields across Greater London reveals interesting patterns:
- East London boasts some of the highest yields, with areas like Barking (IG11) offering up to 7.2% yield
- West London while generally offering lower yields, commands some of the highest weekly rents, with areas like South Kensington (SW7) averaging £1,238 per week.
- South London presents a mix of high-yield areas like Thamesmead (SE28) at 6.4% and areas with strong weekly rents like Battersea (SW11) at £883 per week.
- North London shows a balance between yield and rent, with areas like Tottenham (N17) offering 6.5% yield and St John's Wood (NW8) commanding £1,256 weekly rent.
Article updated: September 2025
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by Robert Jones, Founder of Property Investments UK
With two decades in UK property, Rob has been investing in buy-to-let since 2005, and uses property data to develop tools for property market analysis.
Best Rental Yields Across Greater London by Region
Below, we look at the 4 main regions across the Capital, so whether you are prioritising high yields or the best £ rental income per week, the latest London property data shows the highest results in each region, next to the average house prices, so you can focus on regions and postcode districts within your budget.
Property Data Sources
Our location guide relies on diverse, authoritative datasets including:
- HM Land Registry UK House Price Index
- Ministry of Housing, Communities and Local Government
- Ordnance Survey Data Hub
- London Rental Map
- Propertydata.co.uk
We update our property data quarterly to ensure accuracy. Last update: September 2025. All data is presented as provided by our sources without adjustments or amendments.
North London Highest Rental Yields (%)
| Area | Yield % | Avg. Asking Price £ | Avg. Weekly Rent £ |
|---|---|---|---|
| N17 (Tottenham) | 6.5% | £424,812 | £532 |
| EN3 (Enfield) | 5.7% | £374,008 | £410 |
| N9 (Edmonton) | 5.6% | £378,073 | £406 |
| NW9 (Kingsbury) | 5.5% | £457,264 | £480 |
| NW5 (Kentish Town) | 5.4% | £636,565 | £664 |
| N18 (Edmonton) | 5.2% | £428,814 | £427 |
| HA9 (Wembley) | 5.1% | £502,408 | £491 |
| N1 (Islington, Canonbury) | 5.0% | £729,691 | £700 |
| NW8 (St John's Wood) | 5.0% | £1,302,875 | £1,256 |
| HA0 (Wembley) | 4.9% | £502,135 | £469 |
North London's rental yields demonstrate a clear hierarchy, with Tottenham (N17) leading at 6.5% yield and outer areas consistently outperforming more central locations. The Edmonton and Enfield corridor (EN3, N9, N18) delivers solid yields between 5.2-5.7%, while premium areas like St John's Wood (NW8) achieve 5.0% yields despite asking prices exceeding £1.3 million. Wembley's strong representation (HA9, HA0) reflects the area's appeal to investors, with yields approaching 5% and asking prices around £500,000. Note: These figures represent gross rental yields calculated from average London residential property rents and average property asking prices, and investors should note that net yields will be lower after accounting for costs, void periods, and management expenses.
East London Highest Rental Yields (%)
| Area | Yield % | Avg. Asking Price £ | Avg. Weekly Rent £ |
|---|---|---|---|
| IG11 (Barking) | 7.2% | £308,427 | £430 |
| E3 (Bow) | 6.5% | £434,545 | £543 |
| RM8 (Dagenham) | 6.3% | £375,760 | £453 |
| E16 (Canning Town) | 6.1% | £434,732 | £510 |
| E15 (Stratford) | 6.1% | £446,518 | £521 |
| E13 (Plaistow) | 6.1% | £402,839 | £474 |
| E6 (East Ham) | 6.0% | £415,529 | £478 |
| RM9 (Dagenham) | 5.9% | £386,667 | £438 |
| E9 (Hackney) | 5.9% | £536,172 | £606 |
| RM10 (Dagenham) | 5.9% | £372,272 | £419 |
East London's rental yields show a clear pattern, with the highest returns concentrated in areas offering lower property prices combined with steady rental demand. Barking (IG11) leads at 7.2% yield, demonstrating how outer East London locations can deliver superior returns compared to more central areas. The Dagenham corridor (RM8, RM9, RM10) consistently delivers yields above 5.9%, while established areas like Bow (E3) and Stratford (E15) maintain strong yields above 6% despite higher property values. Note: These figures represent gross rental yields calculated from average London residential property rents and average property asking prices, and investors should note that net yields will be lower after accounting for costs, void periods, and management expenses.
South London Highest Rental Yields (%)
| Area | Yield % | Avg. Asking Price £ | Avg. Weekly Rent £ |
|---|---|---|---|
| SE28 (Thamesmead) | 6.4% | £339,991 | £416 |
| SE16 (Rotherhithe) | 5.9% | £476,157 | £545 |
| SE8 (Deptford) | 5.9% | £433,241 | £492 |
| SE13 (Lewisham) | 5.8% | £396,143 | £439 |
| SE18 (Woolwich) | 5.7% | £426,978 | £470 |
| SE15 (Peckham) | 5.7% | £522,815 | £569 |
| SW9 (Stockwell) | 5.7% | £520,434 | £570 |
| CR4 (Mitcham) | 5.7% | £394,173 | £435 |
| SE14 (New Cross) | 5.6% | £432,168 | £464 |
| SW11 (Battersea) | 5.6% | £818,864 | £883 |
South London's rental yields reveal distinct performance clusters, with Thamesmead (SE28) leading at 6.4% yield and several Southeast London areas (SE16, SE8, SE13) clustering around 5.8-5.9%. The data shows four areas tied at 5.7% yields - Woolwich, Peckham, Stockwell, and Mitcham - demonstrating consistent performance across diverse locations. Premium area Battersea (SW11) achieves 5.6% yield despite asking prices exceeding £800,000, while more affordable areas like Lewisham and Mitcham deliver similar yields with asking prices under £400,000. Note: These figures represent gross rental yields calculated from average London residential property rents and average property asking prices, and investors should note that net yields will be lower after accounting for costs, void periods, and management expenses.
West London Highest Rental Yields (%)
| Area | Yield % | Avg. Asking Price £ | Avg. Weekly Rent £ |
|---|---|---|---|
| UB5 (Northolt) | 6.0% | £363,723 | £419 |
| UB2 (Southall) | 5.5% | £433,550 | £457 |
| UB3 (Hayes) | 5.4% | £403,110 | £421 |
| TW13 (Feltham) | 5.1% | £400,357 | £390 |
| W3 (Acton) | 5.1% | £525,222 | £517 |
| UB7 (West Drayton) | 5.1% | £396,682 | £393 |
| W12 (Shepherd's Bush) | 5.1% | £688,824 | £673 |
| HA0 (Wembley) | 4.9% | £502,135 | £469 |
| W6 (Hammersmith) | 4.8% | £827,380 | £765 |
| W2 (Paddington) | 4.8% | £1,064,038 | £992 |
West London's rental yields show clear geographic patterns, with outer areas significantly outperforming central locations. Northolt (UB5) leads at 6.0% yield, while the Heathrow corridor (UB2, UB3, UB7, TW13) consistently delivers yields between 5.1-5.5% with asking prices under £435,000. Four areas achieve identical 5.1% yields despite vastly different price points - from West Drayton at £397,000 to Shepherd's Bush at £689,000. Premium central areas like Paddington (W2) achieve 4.8% yields with asking prices exceeding £1 million, demonstrating how West London caters to investors across different budget ranges. Note: These figures represent gross rental yields calculated from average London residential property rents and average property asking prices, and investors should note that net yields will be lower after accounting for costs, void periods, and management expenses.
Highest Weekly Rents (£) Across Greater London by Region
This is distinctively different to yield. Below we look at simply the highest average rent price, by £ per week, on average in each postcode district.
Property Data Sources
Our location guide relies on diverse, authoritative datasets including:
- HM Land Registry UK House Price Index
- Ministry of Housing, Communities and Local Government
- Ordnance Survey Data Hub
- London Rental Map
- Propertydata.co.uk
We update our property data quarterly to ensure accuracy. Last update: September 2025. All data is presented as provided by our sources without adjustments or amendments.
North London Highest Rent Per Week (£)
| Area | Rent Per Week (£) |
|---|---|
| NW8 (St John's Wood) | £1,256 |
| NW3 (Hampstead) | £826 |
| EN4 (Barnet) | £747 |
| N1 (Islington, Canonbury) | £700 |
| NW1 (Camden Town) | £697 |
| N6 (Highgate) | £686 |
| NW5 (Kentish Town) | £664 |
| NW6 (Kilburn) | £614 |
| N19 (Archway) | £595 |
| N2 (East Finchley) | £579 |
East London Highest Rent Per Week (£)
| Area | Rent Per Week (£) |
|---|---|
| E1 (Whitechapel) | £656 |
| E9 (Hackney) | £606 |
| E8 (Hackney Central) | £581 |
| E2 (Bethnal Green) | £574 |
| E14 (Poplar) | £555 |
| E3 (Bow) | £543 |
| E15 (Stratford) | £521 |
| E16 (Canning Town) | £510 |
| E7 (Forest Gate) | £487 |
| IG5 (Clayhall) | £481 |
South London Highest Rent Per Week (£)
| Area | Rent Per Week (£) |
|---|---|
| SW11 (Battersea) | £883 |
| SE1 (Southwark) | £691 |
| SW12 (Balham) | £619 |
| SE17 (Walworth) | £616 |
| SW18 (Wandsworth) | £601 |
| SW20 (Raynes Park) | £596 |
| SW4 (Clapham) | £594 |
| SW9 (Stockwell) | £570 |
| SE15 (Peckham) | £569 |
| SW19 (Wimbledon) | £556 |
West London Highest Rent Per Week (£)
| Area | Rent Per Week (£) |
|---|---|
| SW7 (South Kensington) | £1,238 |
| W8 (Kensington) | £1,048 |
| W1 (Mayfair) | £1,021 |
| W2 (Paddington) | £992 |
| SW1 (Belgravia) | £985 |
| SW3 (Chelsea) | £961 |
| W11 (Notting Hill) | £902 |
| SW10 (West Brompton) | £823 |
| W6 (Hammersmith) | £765 |
| SW6 (Fulham) | £718 |
Factors Contributing to London's Highest Rental Yields
This regional breakdown of both rental yields and weekly rents provides a comprehensive view of the London buy-to-let market, allowing investors to compare opportunities across different areas of the city.
But what are the contributing factors behind this property data?
Areas with lower property prices but steady rental demand often produce higher yields.
This is because the yield is a simple calculation of the property price and the rental income. This explains why outer London boroughs feature prominently in the high-yield list (and London commuter towns often offer even higher yields due to lower house prices).
The asset costs in the outer London boroughs are much lower than elsewhere in Greater London.
However, when examining the broader housing picture, data on empty houses in London reveal approximately 36,878 vacant properties across the capital, suggesting that even in high-demand areas, some housing stock remains underutilised, potentially presenting opportunities for investors willing to explore renovation, conversion projects and looking at how to make money flipping houses.
Good transport connections can significantly boost an area's appeal to renters. For example, the Elizabeth Line has enhanced connectivity in areas like Abbey Wood (SE2) and Woolwich (SE18), potentially contributing to their attractive yields.
Why Data Can Fluctuate
It's important to note that rental yield data can fluctuate throughout the year due to various factors:
- Seasonal variations in the rental market.
- Local market conditions. If there are very few properties on the market to rent, there will be less comparable data points and this can skew the data.
- A newly updated property sales report from HM Land Registry with increased or reduced house prices.
- Significant changes in local amenities or transport links creating a boost in tenant demand and increase in rents.
Investors should always conduct thorough research and consider long-term trends rather than relying solely on current yield data.
Frequently Asked Questions
Q: What is a good rental yield in Greater London?
Based on current data, yields above 5.5% are considered very good for London, with the top-performing areas like buy-to-let in Barking (IG11) achieving 7.2% and Tottenham (N17) reaching 6.5%.
Areas delivering 5.0-5.5% yields represent solid performance, while anything above 6% puts you in the top tier of London rental yields. Central London typically sees lower yields (2.5-4.5%) due to higher property prices.
Q: Are higher yields always better areas and properties for buy-to-let investors?
Not necessarily. While high yields are attractive, they can sometimes indicate higher risk or areas with less potential for capital growth. They are often found in the cheapest house price regions of the Capital. It's important to balance yield with other factors like location quality, tenant demand and potential for appreciation. Focusing on the financials of the property includes all these elements and the monthly cash flow. Make sure you have an investment property checklist when you are assessing any potential opportunities.
Q: How do I calculate rental yield?
Gross rental yield is calculated by dividing the annual rental income by the property purchase price, then multiplying by 100. For example, if a property costs £300,000 and rents for £1,500 per month:
(£1,500 * 12) / £300,000 * 100 = 6% yield
We have an article with a rental yield calculator here.
Q: Why are yields in central London often lower?
Central London areas have always been in exceptionally high demand, from international billionaires, diplomats and UK elite sports stars; it attracts the wealthiest of ultra-high-net-worth owners, and the most expensive streets in London can be found in this area.
This creates an exceptionally high ceiling for house prices, and these very high property prices, result in lower percentage yields despite high rental income.
For example, Mayfair (W1) achieves £1,021 weekly rent but only 2.5% yield due to average asking prices exceeding £2.1 million. Similarly, Chelsea (SW3) commands £961 weekly rent but delivers just 2.7% yield. These prime areas attract investors focused on capital appreciation rather than rental income, while outer areas like Barking deliver 7.2% yields with £430 weekly rents and £308,000 asking prices.
This is why central London boroughs like Westminster are often at the top of the lists for the highest property prices in London.