Where to Buy Property Investments in Barking and Dagenham: Yields of 6.6%
IG11 in Barking leads the borough at 6.6% gross rental yield on an asking price of £313,076. Barking and Dagenham is a borough in east London, positioned on the Thames estuary between Newham and Havering. The average sold price across the borough is £359,807, which is 23.9% above the England average of £290,437 but 35.1% below the London average of £554,422. The borough's population grew 17.7% between the 2011 and 2021 censuses, from 185,911 to 218,869.
Asking prices across the borough's eight postcodes range from £313,076 in IG11 to £496,476 in RM12, with seven of those eight postcodes returning gross yields above 5%. Monthly rents run from £1,720 in IG11 to £1,908 in RM10. For investors watching east London, Barking and Dagenham sits in an unusual position: prices well below the London average, yields that compete with the highest in outer London, and a regeneration pipeline that includes one of the largest brownfield housing developments in Europe.
This guide covers the London Borough of Barking and Dagenham (ONS code E09000002), covering eight postcode districts: IG11, RM6, RM7, RM8, RM9, RM10, RM12 and RM13. RM12 (Elm Park, Hornchurch) and RM13 (Rainham) straddle the boundary with the neighbouring London Borough of Havering, so PropertyData figures for these postcodes cover the full postcode district and may include properties in Havering. The borough sits in east London, bordered by Redbridge to the north, Havering to the east, and Newham to the west. It is part of the London property investment region.
Article updated: April 2026
Barking & Dagenham Buy-to-Let Market Overview 2026
Barking and Dagenham combines the lowest average asking prices of any London borough with rental yields that match inner London postcodes, underpinned by a regeneration pipeline delivering tens of thousands of new homes across the Thames estuary corridor.
- Average sold price: £359,807 (23.9% above England's £290,437)
- Asking price range: £313,076 (IG11) to £496,476 (RM12)
- Rental yields: 4.3% (RM12) to 6.6% (IG11) across 8 postcodes with rental data
- Rental income: Monthly rents from £1,720 (IG11) to £1,908 (RM10)
- Price per sq ft: House prices from £435/sq ft (IG11) to £491/sq ft (RM12)
- Market activity: Sales ranging from 18 per month (RM6/RM9) to 29 per month (RM12)
- Deposit requirements: 30% deposits range from £93,923 (IG11) to £148,943 (RM12)
- Affordability ratios: Property prices from 8.0 to 12.7 times Barking & Dagenham's median annual salary of £39,213
Contents
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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.
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
- Propertydata.co.uk
All property data is collected directly from primary government and industry sources. Sold prices are from HM Land Registry's UK House Price Index. Rental yields, asking prices and rents are from PropertyData.co.uk, which aggregates live listing data. Earnings and employment data are from the Office for National Statistics via Nomis. Population figures are from the ONS Census 2021. We update our property data quarterly to ensure accuracy. Last update: April 2026.
Why Invest in Barking & Dagenham?
Barking and Dagenham's population reached 218,869 in the 2021 Census, a 17.7% increase from 185,911 in 2011. That rate of growth outpaced the England average and reflects the borough's position on the eastern edge of London's expansion. The borough covers 36 square kilometres.
Transport links include the District line, Hammersmith & City line, London Overground (Suffragette line) and c2c National Rail services. Barking station is the main hub, with connections to all four services. Barking Riverside station opened in July 2022 as the eastern terminus of the Suffragette line, serving the new development on the Thames.
The median gross annual salary for Barking and Dagenham residents is £39,213, based on a weekly figure of £754.10. This sits below both the London regional median of £902.70 per week and the Great Britain median of £766.60 per week. The local employment rate is 71.3% with unemployment at 8.0%. The borough does not have a university. Barking & Dagenham College is the main further education provider, with higher education courses validated by the University of Greenwich. The Barking, Havering and Redbridge University Hospitals NHS Trust (BHRUT) serves the borough's hospital needs through King George Hospital in Goodmayes (London Borough of Redbridge) and Queen's Hospital in Romford (London Borough of Havering). Community and mental health services are provided by NELFT NHS Foundation Trust.
Barking & Dagenham Economic Summary
- Population: 218,869 (2021 Census). Growth of 17.7% from 2011.
- Median annual salary: £39,213 (local), £46,940 (London), £39,863 (Great Britain)
- Employment rate: 71.3% (local)
- Unemployment rate: 8.0% (local)
- Key employment sectors: Public administration, health and social care, logistics, film and TV production
Source: ONS Census 2021, Nomis Labour Market Profile (ASHE 2025, Employment Oct 2024-Sep 2025)
Regeneration and Investment in Barking & Dagenham
Barking and Dagenham has one of the largest regeneration pipelines in London. The council's development company, Be First, is targeting 50,000 new homes and 20,000 new jobs across 400 hectares of development land in the borough.
- Barking Riverside (Under construction, up to 20,000 homes): One of London's largest brownfield housing developments, covering 443 acres on the former Barking Power Station site along the Thames. A joint venture between the Mayor of London and L&Q, it has its own London Overground station (opened July 2022) and revised outline consent secured in 2026. Updates at Barking Riverside.
- Beam Park (Under construction, 3,900+ homes): A mixed-tenure development on a former factory site between Dagenham and Rainham, delivered by Vistry Group (Countryside Partnerships) and L&Q. Phase 3, delivering 520 homes for the council, topped out in October 2025. A new c2c railway station at Beam Park was formally approved for construction in April 2026. Updates at Beam Park London.
- Eastbrook Studios (Completed November 2024, 567,000 sq ft): London's largest film and TV production facility, built across 21.5 acres in Dagenham with 12 sound stages. The studio achieved a BREEAM Excellent sustainability rating and is now fully operational, creating a new employment cluster in the south of the borough. Source: VolkerFitzpatrick.
Barking & Dagenham Property Market Analysis
The average property price in Barking and Dagenham reached £359,807 in January 2026, according to HM Land Registry data. That represents a 593.7% increase from the £51,870 recorded in January 1995 when the index began. Within this 31-year window, the borough has tracked the broader London cycle of boom, crash and recovery, but with sharper swings in both directions.
The two charts below show the full price history and year-on-year percentage change for Barking and Dagenham from January 1995 to January 2026.
Source: HM Land Registry House Price Index for Barking and Dagenham, January 1995 to January 2026.
When Was the Last House Price Crash in Barking & Dagenham?
Barking and Dagenham is a London borough, so all sold property prices from HM Land Registry are available at the borough level. The data below covers the full period from January 1995 to January 2026.
The borough's pre-crash peak was £201,739 in March 2008. From there, prices fell 24.4% to a trough of £152,579 in May 2009. That decline was steeper than the London-wide fall of 17.8% (from £319,663 in January 2008 to £262,661 in April 2009) and steeper than England's 18.2% decline. The worst annual change reading hit -23.3% in May 2009.
- 1995-2007 (The Boom): Prices climbed from £51,870 in January 1995 to £197,834 by December 2007. The borough saw some of the fastest percentage growth in London during this period, driven by its position as one of the cheapest entry points to the capital.
- 2008-2009 (The Financial Crisis): Peak of £201,739 in March 2008, falling 24.4% to £152,579 in May 2009. The annual change reading bottomed at -23.3%. The sharper decline than London as a whole reflects the borough's higher exposure to stretched mortgage lending at the lower end of the market.
- 2010-2013 (Stagnation): Prices oscillated between £152,579 and £183,000, with the borough slower to recover than central London areas where international capital flowed first.
- 2014-2016 (Recovery): Prices passed the pre-crash peak in May 2014 at £202,112, six years after the crash. By December 2016, prices had reached £293,599, driven by London's broader recovery and the beginning of regeneration investment along the riverside.
- 2017-2019 (Pre-pandemic): Growth slowed. Prices reached £313,309 in September 2019 before dipping, with the London-wide slowdown affecting outer boroughs most.
- 2020-2022 (Pandemic surge): After a brief dip to £298,615 in May 2020, prices recovered rapidly during the stamp duty holiday period. The all-time high for the borough was reached later.
- 2023-2024 (Rate adjustment): Prices plateaued as higher interest rates reduced purchasing power across the market.
- 2025-2026 (Current): The all-time high of £364,186 was reached in March 2025. The latest reading of £359,807 in January 2026 represents year-on-year growth of 1.3%.
What does 30 years of growth look like in numbers?
- 5 years (Jan 2021 to Jan 2026): 12.8% growth (£318,877 to £359,807)
- 10 years (Jan 2016 to Jan 2026): 35.3% growth (£265,985 to £359,807)
- 15 years (Jan 2011 to Jan 2026): 113.7% growth (£168,397 to £359,807)
- 20 years (Jan 2006 to Jan 2026): 115.6% growth (£166,874 to £359,807)
- 30 years (Jan 1996 to Jan 2026): 588.7% growth (£52,248 to £359,807)
The 20-year and 15-year growth figures are nearly identical (115.6% vs 113.7%), which reflects the crash wiping out five years of gains. An investor who bought in January 2006 and one who bought in January 2011 would hold properties worth almost the same amount today. The crash did not destroy long-term returns, but it compressed the timeline. The recovery from trough to the current price represents 135.8% growth over 17 years.
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View Property DealsSold House Prices in Barking & Dagenham
The average sold price for all property types in Barking and Dagenham is £359,807, which is £69,370 (23.9%) above the England average of £290,437. That gap narrows significantly for flats, where the borough average of £242,137 sits just £23,688 (10.8%) above the England figure. For detached houses, the picture reverses: £637,509 in Barking and Dagenham against £468,546 in England, a 36.1% premium.
| Property Type | Barking & Dagenham Average | England Average | Difference |
|---|---|---|---|
| Detached houses | £637,509 | £468,546 | +£168,963 (+36.1%) |
| Semi-detached houses | £469,809 | £288,046 | +£181,763 (+63.1%) |
| Terraced houses | £392,242 | £243,580 | +£148,662 (+61.0%) |
| Flats and maisonettes | £242,137 | £218,449 | +£23,688 (+10.8%) |
| All property types | £359,807 | £290,437 | +£69,370 (+23.9%) |
Flats and maisonettes carry the smallest premium over England at just 10.8%. This makes the borough's flat stock one of the most competitively priced in London for investors targeting the rental market. A flat buyer in Barking and Dagenham pays £242,137 on average, compared to £218,449 nationally. The gap for semi-detached houses is far wider at 63.1%, reflecting the scarcity and demand for family homes across east London.
Terraced houses at £392,242 sit 61.0% above the England average. The terrace premium is driven by housing stock: large parts of Becontree and Dagenham consist of interwar terraced estates originally built by the London County Council, and these attract both owner-occupiers and landlords. Detached houses at £637,509 represent a premium market within the borough, concentrated in RM12 and RM13 on the Havering boundary.
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
- Propertydata.co.uk
All property data is collected directly from primary government and industry sources. Sold prices are from HM Land Registry's UK House Price Index. Rental yields, asking prices and rents are from PropertyData.co.uk, which aggregates live listing data. Earnings and employment data are from the Office for National Statistics via Nomis. Population figures are from the ONS Census 2021. We update our property data quarterly to ensure accuracy. Last update: April 2026.
Price Per Square Foot in Barking & Dagenham
How much does a square foot of housing cost in Barking and Dagenham? The range is tight: £435 in IG11 to £491 in RM12, a spread of just £56. That gap is unusually narrow for a London borough and means the underlying land and build values are relatively uniform across all eight postcodes. The table below ranks from cheapest to most expensive per square foot.
| Rank | Area | Price Per Sq Ft |
|---|---|---|
| 1 | IG11 (Barking, Creekmouth) | £435 |
| 2 | RM13 (Rainham) | £452 |
| 3 | RM10 (Dagenham East, Becontree) | £454 |
| 4 | RM7 (Rush Green, Mawneys) | £455 |
| 5 | RM6 (Chadwell Heath, Marks Gate) | £458 |
| 6 | RM8 (Dagenham Becontree Heath) | £458 |
| 7 | RM9 (Dagenham Heathway) | £461 |
| 8 | RM12 (Elm Park, Hornchurch) | £491 |
IG11 at £435 per square foot is the cheapest postcode in the borough on a per-square-foot basis, yet it delivers the highest gross yield at 6.6%. Investors buying in IG11 are getting more space per pound than anywhere else in Barking and Dagenham. RM9 at £461 per square foot sits £26 above IG11 despite having a lower asking price overall (£385,788 vs £313,076). This means average properties in RM9 are smaller than those in IG11, which aligns with the higher concentration of ex-council flats in the Heathway area.
For Sale Asking Prices in Barking & Dagenham
Compared to the sold price data above, asking prices reveal a wider spread. IG11 lists at £313,076 and RM12 at £496,476, a gap of £183,400 and a borough-wide mean of £405,690. An investor choosing IG11 over RM12 is paying 37% less for a property in the same borough.
| Rank | Area | Asking Price |
|---|---|---|
| 1 | IG11 (Barking, Creekmouth) | £313,076 |
| 2 | RM9 (Dagenham Heathway) | £385,788 |
| 3 | RM10 (Dagenham East, Becontree) | £387,167 |
| 4 | RM8 (Dagenham Becontree Heath) | £391,957 |
| 5 | RM7 (Rush Green, Mawneys) | £409,579 |
| 6 | RM6 (Chadwell Heath, Marks Gate) | £426,673 |
| 7 | RM13 (Rainham) | £434,809 |
| 8 | RM12 (Elm Park, Hornchurch) | £496,476 |
The four cheapest postcodes (IG11, RM9, RM10, RM8) all sit below the £400,000 mark. These cover central Barking and the Dagenham heartland. RM7, RM6 and RM13 form a middle band between £409,000 and £435,000. RM12 at £496,476 stands apart, but this postcode straddles the Havering boundary and includes Elm Park and parts of Hornchurch, so its higher asking price reflects a different housing market.
For investors looking at below market value properties or repossessed houses for sale, the gap between IG11's asking price (£313,076) and the borough's Land Registry sold price average (£359,807) is worth noting. IG11's asking price sits £46,731 below the borough average sold price, which reflects the heavier concentration of flats and new-build apartments in the Barking town centre and Creekmouth area. Buyers looking for properties that need work may also want to explore renovation property opportunities in the borough.
House Price Growth in Barking & Dagenham
With entry prices among the lowest in London, how much has that translated into capital gains? Five-year growth ranges from 2.2% in IG11 to 21.2% in RM7, a spread of 19 percentage points within the same borough. IG11 has the lowest asking price and the highest yield, but its five-year capital growth trails every other postcode. RM7 (Rush Green, Mawneys) leads at 21.2%, followed by RM8 and RM9, both at 20.2%.
| Area | 1 Year | 3 Years | 5 Years |
|---|---|---|---|
| RM7 (Rush Green, Mawneys) | 1.5% | 5.0% | 21.2% |
| RM8 (Dagenham Becontree Heath) | 5.3% | 4.4% | 20.2% |
| RM9 (Dagenham Heathway) | 3.6% | -1.6% | 20.2% |
| RM13 (Rainham) | 3.7% | 6.7% | 15.8% |
| RM10 (Dagenham East, Becontree) | -0.2% | -1.3% | 14.1% |
| RM12 (Elm Park, Hornchurch) | 3.3% | 3.9% | 14.1% |
| RM6 (Chadwell Heath, Marks Gate) | 5.9% | 1.8% | 11.0% |
| IG11 (Barking, Creekmouth) | -5.4% | -0.5% | 2.2% |
IG11 and RM10 are the only two postcodes with negative readings in both the one-year and three-year columns. IG11 at -5.4% (one-year) and -0.5% (three-year) is the yield leader but the growth laggard. RM10 shows -0.2% and -1.3% respectively. The likely explanation is new-build supply: Barking Riverside and Barking town centre developments have added significant flat stock to IG11 in recent years, which weighs on average asking prices even as rents hold firm. Investors targeting IG11 for yield should factor in the possibility that capital growth will continue to lag other parts of the borough.
RM7, RM8 and RM9 all delivered five-year growth above 20%. These postcodes cover the Dagenham and Rush Green heartland. RM9 is notable for combining 20.2% five-year growth with a 5.7% yield. The three-year figure for RM9 is negative (-1.6%), which means most of that five-year gain came in the first two years of the window. RM13 at 15.8% five-year growth has the most consistent trajectory, with positive readings at every time horizon.
Monthly Property Sales in Barking & Dagenham
Monthly sales volumes range from 18 per month in RM6 and RM9 to 29 in RM12, with turnover rates from 8% to 23%. RM12 leads on volume (29 sales per month) despite having the highest asking price, reflecting strong demand for family housing on the Havering boundary. RM9 leads on turnover at 23%, meaning a higher proportion of its total stock changes hands each year.
| Area | Sales Per Month | Turnover | Asking Price |
|---|---|---|---|
| RM12 (Elm Park, Hornchurch) | 29 | 17% | £496,476 |
| RM7 (Rush Green, Mawneys) | 28 | 19% | £409,579 |
| IG11 (Barking, Creekmouth) | 25 | 8% | £313,076 |
| RM13 (Rainham) | 24 | 16% | £434,809 |
| RM8 (Dagenham Becontree Heath) | 22 | 19% | £391,957 |
| RM10 (Dagenham East, Becontree) | 22 | 18% | £387,167 |
| RM6 (Chadwell Heath, Marks Gate) | 18 | 13% | £426,673 |
| RM9 (Dagenham Heathway) | 18 | 23% | £385,788 |
RM9's 23% turnover is the highest in the borough despite recording the joint-lowest sales volume (18 per month). This means RM9 has a smaller total housing stock than the high-volume postcodes, but a greater proportion of it is changing hands each year. For investors, high turnover relative to stock signals an active market where properties let and sell without long void periods.
IG11 records 25 sales per month but just 8% turnover. The large gap between volume and turnover rate reflects IG11's expanding housing stock from the Barking Riverside and town centre developments. More homes means the same number of sales produces a lower turnover percentage. RM12 leads on raw volume at 29 sales per month, but this postcode straddles the Havering boundary and includes a wider housing market.
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
- Propertydata.co.uk
All property data is collected directly from primary government and industry sources. Sold prices are from HM Land Registry's UK House Price Index. Rental yields, asking prices and rents are from PropertyData.co.uk, which aggregates live listing data. Earnings and employment data are from the Office for National Statistics via Nomis. Population figures are from the ONS Census 2021. We update our property data quarterly to ensure accuracy. Last update: April 2026.
Barking & Dagenham Rental Market Analysis
For investors weighing up whether rental property is a worthwhile investment in Barking and Dagenham, the data below breaks down average monthly rents and gross rental yields across the borough's postcodes.
All eight postcodes have rental data, with monthly rents ranging from £1,720 in IG11 to £1,908 in RM10. If you are looking to build a property portfolio in east London, Barking and Dagenham's combination of sub-£400,000 entry prices and 5%+ yields across seven of eight postcodes is a dataset worth examining in detail.
Average Rent & Gross Rental Yields in Barking & Dagenham
Gross rental yields in Barking and Dagenham range from 4.3% in RM12 to 6.6% in IG11. Seven of the eight postcodes return yields above 5%, which is a concentration of yield depth that is uncommon in London boroughs. The top yielding postcode, IG11, achieves its 6.6% figure on the back of the borough's lowest asking price (£313,076) and a monthly rent of £1,720 that sits just £188 below the borough's highest rent.
| Area | Average Rent (Monthly) | Asking Price | Gross Yield |
|---|---|---|---|
| IG11 (Barking, Creekmouth) | £1,720 | £313,076 | 6.6% |
| RM10 (Dagenham East, Becontree) | £1,908 | £387,167 | 5.9% |
| RM9 (Dagenham Heathway) | £1,824 | £385,788 | 5.7% |
| RM8 (Dagenham Becontree Heath) | £1,804 | £391,957 | 5.5% |
| RM6 (Chadwell Heath, Marks Gate) | £1,843 | £426,673 | 5.2% |
| RM7 (Rush Green, Mawneys) | £1,788 | £409,579 | 5.2% |
| RM13 (Rainham) | £1,887 | £434,809 | 5.2% |
| RM12 (Elm Park, Hornchurch) | £1,797 | £496,476 | 4.3% |
RM10 delivers the highest monthly rent in the borough at £1,908, paired with a 5.9% yield. That combination of top-tier rent and strong yield on a sub-£390,000 asking price makes it one of the most balanced postcode profiles in the dataset. RM9 at 5.7% yield on £385,788 is a close alternative with the borough's highest turnover rate (23% vs 18% for RM10).
RM12's 4.3% yield is the outlier. It records the borough's lowest yield because its asking price (£496,476) is 22% above the borough mean while its rent (£1,797) is mid-table. This postcode straddles the Havering boundary, so the property mix includes more expensive family homes that push asking prices up without a proportional rent increase. Investors can learn more about how to calculate rental yield for individual properties.
Is Barking & Dagenham Rent High?
Monthly rents in Barking and Dagenham consume between 52.6% and 58.4% of the local median gross monthly salary. The median gross weekly salary in Barking and Dagenham is £754.10, which equates to £3,268 per month or £39,213 per year. This is below the London regional median of £902.70 per week and below the Great Britain median of £766.60 per week. Data from the Nomis Labour Market Profile (ASHE 2025).
| Rank | Area | Rent as % of Income |
|---|---|---|
| 1 | RM10 (Dagenham East, Becontree) | 58.4% |
| 2 | RM13 (Rainham) | 57.7% |
| 3 | RM6 (Chadwell Heath, Marks Gate) | 56.4% |
| 4 | RM9 (Dagenham Heathway) | 55.8% |
| 5 | RM8 (Dagenham Becontree Heath) | 55.2% |
| 6 | RM12 (Elm Park, Hornchurch) | 55.0% |
| 7 | RM7 (Rush Green, Mawneys) | 54.7% |
| 8 | IG11 (Barking, Creekmouth) | 52.6% |
Every postcode in the borough sits above 50% rent-to-income. This reflects a combination of London-level rents and below-London-average local earnings. RM10 at 58.4% commands the highest share because it has the borough's highest rent (£1,908/month) paired with the same local salary base. IG11 at 52.6% has the lowest ratio, driven by its lower rent of £1,720, which is £188 per month less than RM10.
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View Property DealsAre House Prices High? Price-to-Earnings Ratios
Purchasing a property in Barking and Dagenham requires between 8.0 and 12.7 times the median annual salary. This is based on the Nomis Labour Market Profile for Barking & Dagenham showing the median gross annual income for Barking and Dagenham residents is £39,213. The national benchmark is 7.3x (England average price of £290,437 divided by the Great Britain median annual salary of £39,863).
| Rank | Area | Price-to-Earnings Ratio |
|---|---|---|
| 1 | IG11 (Barking, Creekmouth) | 8.0x |
| 2 | RM9 (Dagenham Heathway) | 9.8x |
| 3 | RM10 (Dagenham East, Becontree) | 9.9x |
| 4 | RM8 (Dagenham Becontree Heath) | 10.0x |
| 5 | RM7 (Rush Green, Mawneys) | 10.4x |
| 6 | RM6 (Chadwell Heath, Marks Gate) | 10.9x |
| 7 | RM13 (Rainham) | 11.1x |
| 8 | RM12 (Elm Park, Hornchurch) | 12.7x |
IG11 at 8.0x is the closest postcode in the borough to the England national benchmark of 7.3x. For an investor looking at buy-to-let costs and affordability, the jump from IG11 at 8.0x to RM9 at 9.8x is a gap of nearly two years' salary. RM12 at 12.7x sits at the upper end of the London outer-borough range.
These ratios use local earnings against local prices. An investor using a stamp duty calculator alongside these figures can model the full upfront cost of entering each postcode.
Deposit Requirements in Barking & Dagenham
A 30% deposit on a buy-to-let property in Barking and Dagenham ranges from £93,923 in IG11 to £148,943 in RM12. The difference between the cheapest and most expensive entry point is £55,020. That £55,020 gap buys an investor a 2.3 percentage point yield improvement (6.6% in IG11 vs 4.3% in RM12) but comes with the trade-off of weaker capital growth in IG11.
| Rank | Area | 30% Deposit Required |
|---|---|---|
| 1 | IG11 (Barking, Creekmouth) | £93,923 |
| 2 | RM9 (Dagenham Heathway) | £115,736 |
| 3 | RM10 (Dagenham East, Becontree) | £116,150 |
| 4 | RM8 (Dagenham Becontree Heath) | £117,587 |
| 5 | RM7 (Rush Green, Mawneys) | £122,874 |
| 6 | RM6 (Chadwell Heath, Marks Gate) | £128,002 |
| 7 | RM13 (Rainham) | £130,443 |
| 8 | RM12 (Elm Park, Hornchurch) | £148,943 |
Four postcodes (IG11, RM9, RM10, RM8) cluster between £93,923 and £117,587. This tight deposit band covers the core Barking and Dagenham postcodes where yields range from 5.5% to 6.6%. The gap from RM8 (£117,587) to RM7 (£122,874) marks the step up into the mid-range postcodes. Investors exploring routes with lower upfront capital can read about buy to let with no deposit strategies.
What the Barking & Dagenham Data Tells Buy-to-Let Investors
IG11 at 6.6% gross yield on a £313,076 asking price and a £93,923 deposit is the headline entry point. It delivers the borough's highest yield and lowest cost of entry, with rents of £1,720 per month. The trade-off is clear in the data: IG11's five-year growth is 2.2%, the lowest of any postcode in the borough, and both its one-year (-5.4%) and three-year (-0.5%) readings are negative. New-build supply from Barking Riverside and town centre developments is adding flat stock that weighs on average prices.
RM9 and RM10 combine yields of 5.7% and 5.9% with five-year growth of 20.2% and 14.1% respectively. RM9 adds the borough's highest turnover rate (23%) on 18 sales per month. For investors looking at buy-to-let property where both yield and growth data are positive, these two postcodes sit in the middle of the deposit range (£115,736 and £116,150) and deliver the strongest combined numbers.
RM12 and RM13 sit at the upper end of the borough's price range (£434,809 to £496,476) with yields of 4.3% and 5.2%. Both postcodes straddle the Havering boundary and include properties in Elm Park, Hornchurch and Rainham. RM13 has the most consistent growth profile across all three time horizons (3.7% one-year, 6.7% three-year, 15.8% five-year). RM12's yield is the lowest in the borough at 4.3%, dragged down by its higher price relative to rent.
Barking and Dagenham operates a selective licensing scheme for privately rented properties. Landlords in the borough should check whether their property falls within a designated licensing area, as this adds an administrative cost to the buy-to-let operation. Investors exploring off-market property in the borough may find opportunities before they reach the open market.
How Barking & Dagenham Compares
Barking and Dagenham's mean asking price of £405,690 is the lowest of the five east London locations compared here. The borough matches Newham's top yield at 6.6% while asking £31,298 less on average. Against Havering and Redbridge, the price gap widens further.
| Location | Mean Asking Price | Mean Monthly Rent | Top Gross Yield |
|---|---|---|---|
| Barking & Dagenham | £405,690 | £1,821 | 6.6% |
| Newham | £436,988 | £2,193 | 6.6% |
| Greenwich | £464,891 | £1,956 | 5.9% |
| Havering | £517,787 | £1,712 | 5.6% |
| Redbridge | £534,780 | £1,953 | 6.1% |
Newham matches the 6.6% top yield but at a higher mean asking price of £436,988 and with substantially higher rents (£2,193 average). Greenwich at £464,891 sits between the two in price terms with a top yield of 5.9%. Havering is the neighbouring borough to the east and shares two postcodes (RM12, RM13) with the Barking and Dagenham dataset. Its mean asking price is £112,097 higher, but its top yield is a full percentage point lower at 5.6%, and its mean rent is actually £109 per month less than Barking and Dagenham's. Redbridge to the north has the highest mean asking price at £534,780 but achieves 6.1% at the top end, reflecting higher rents in its better-connected postcodes.
For investors comparing the best buy-to-let locations in London, the Barking and Dagenham data shows the joint-highest top yield (tied with Newham) at the lowest average entry price of any borough in this comparison. A broader view of London yields is available in our areas of London with the highest rental yields guide. Investment property opportunities across the UK can be found through our listings.
Frequently Asked Questions
Is Barking a good place to live?
Barking is one of the lower-priced entry points within the London borough system, with asking prices from £313,076 in IG11 to £496,476 in RM12. The town centre has a District line, Hammersmith & City line, London Overground and c2c National Rail station providing direct links into central London and out towards Essex. The borough has seen significant regeneration investment, including the Barking Riverside development (up to 20,000 homes with its own Overground station) and Eastbrook Studios, London's largest film and TV production facility, which opened in Dagenham in 2024. The 2021 Census recorded a population of 218,869, a 17.7% increase on 2011.
What are the best places to live in Barking and Dagenham?
Each postcode serves a different profile. IG11 (Barking, Creekmouth) has the lowest asking price at £313,076 and the highest gross yield at 6.6%, but its five-year growth is the weakest at 2.2%. RM7 (Rush Green, Mawneys) leads on five-year growth at 21.2% on a £409,579 asking price. RM9 (Dagenham Heathway) combines a 5.7% yield with 20.2% five-year growth and the borough's highest turnover rate at 23%.
RM12 (Elm Park, Hornchurch) at £496,476 straddles the Havering boundary and includes properties with a different character from the rest of the borough. The Dagenham postcodes (RM7, RM8, RM9, RM10) all record higher turnover rates (18-23%) than IG11 (8%).
How does Barking and Dagenham compare to Newham for property investment?
Barking and Dagenham is £31,298 cheaper on average. Both boroughs share a 6.6% top gross yield, but Barking and Dagenham's mean asking price is £405,690 against Newham's £436,988. Newham's mean monthly rent (£2,193) is £372 higher than Barking and Dagenham's (£1,821), reflecting its proximity to Stratford and Canary Wharf. The 30% deposit entry point in Barking and Dagenham starts at £93,923 (IG11), while Newham's cheapest equivalent would require checking the individual postcode data in our Newham guide.
What is happening with Barking Riverside?
Barking Riverside is delivering up to 20,000 homes on a 443-acre brownfield site (the former Barking Power Station) along the Thames. It is a joint venture between the Mayor of London and L&Q, with revised outline consent secured in 2026. The site has its own London Overground station (Barking Riverside, opened July 2022) on the Suffragette line.
The development sits within IG11, which currently records a 6.6% gross yield and an asking price of £313,076. As the development progresses, the balance of housing stock in IG11 will continue to shift towards new-build flats, which is a factor in the postcode's relatively low five-year growth figure of 2.2%.
What are the risks of buying property in Barking and Dagenham?
IG11, the highest-yielding postcode, has negative one-year (-5.4%) and three-year (-0.5%) growth with the borough's lowest turnover rate (8%). The local median annual salary of £39,213 is below the Great Britain median of £39,863, and the employment rate (71.3%) sits below the national average.
Rent-to-income ratios across the borough range from 52.6% to 58.4%, meaning tenants are allocating a significant share of gross earnings to rent. The borough operates a selective licensing scheme for private rentals, which adds cost. RM12 and RM13 straddle the Havering boundary, so PropertyData figures for these postcodes include properties outside the borough.
How much capital gains tax would I pay on a Barking and Dagenham property?
It depends on your total taxable income and the gain made on sale. For context, the Land Registry average price in Barking and Dagenham was £152,579 in May 2009 (the post-crash trough) and is £359,807 in January 2026. An investor who purchased at the trough would be sitting on a gain of £207,228 before costs. The rates and allowances applicable to property disposals are covered in our capital gains tax on property guide. Tax treatment depends on individual circumstances and current legislation.
Are there new builds in Dagenham?
Yes. Two large-scale new-build developments are under construction in the borough. Beam Park, between Dagenham and Rainham, is delivering 3,900+ homes with a new c2c railway station formally approved in April 2026. Barking Riverside (up to 20,000 homes) sits on the Thames in IG11 and has been receiving residents since its London Overground station opened in July 2022.
Eastbrook Studios, London's largest film and TV production facility (567,000 sq ft across 12 sound stages), completed in Dagenham in November 2024. The volume of new-build completions in IG11 is one factor behind that postcode's relatively low five-year price growth of 2.2%, as new-build flats typically list below the average for existing stock.
Are there houses for sale in Barking?
Barking falls within the IG11 postcode, where the current mean asking price is £313,076 with 25 sales per month. The broader borough of Barking and Dagenham covers eight postcodes with asking prices from £313,076 (IG11) to £496,476 (RM12). Seven of the eight postcodes return gross yields above 5%. Investors can browse current listings through our buy-to-let property for sale page or explore off-market property opportunities.