East London Buy-to-Let Investment: Hotspots and Opportunities
East London offers property investors a diverse market, characterised by its blend of historic neighbourhoods and modern developments. From the financial district of E14 (Canary Wharf) to the suburban charm of RM14 (Upminster), the region caters to a wide range of residents and investment strategies.
This diversity is reflected in the property landscape, with average house prices varying from £299,690 in DA18 (Bexley) to £800,813 in RM4 (Havering). The market's versatility extends to rental yields, spanning from 3.0% in RM14 (Havering) to an impressive 6.8% in IG11 (Barking and Dagenham). Price per square foot also shows significant variation, ranging from £384.75 in DA18 (Bexley) to £816.00 in E1 (Tower Hamlets), illustrating the diverse property types and local market conditions across the region.
The investment appeal of East London is further enhanced by its varied population densities and property sales rates. Areas like E1 (Tower Hamlets) boast high population densities of 47,476 people per square mile, contrasting sharply with RM4 (Havering) at just 253 people per square mile. This spectrum caters to different tenant preferences, from bustling urban environments to quieter suburban settings.
Monthly property sales also vary considerably, from as low as 2 in RM4 (Havering) to as high as 47 in E14 (Tower Hamlets), indicating diverse levels of market activity. These varied statistics demonstrate East London's capacity to accommodate a range of investment strategies, whether focused on high rental yields in areas like SE28 (Greenwich) with 6.1%, or on properties in high-demand locations like E3 (Newham) with 28 sales per month.
This rich tapestry of options allows investors to tailor their portfolios to specific goals, be it maximising rental income, targeting capital appreciation across the city, or achieving a balance between the two.
-
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
We update our property data quarterly to ensure accuracy. Last update: September 2024. Next update: December 2024. All data is presented as provided by our sources without adjustments or amendments.
Top Buy-to-Let Hotspots in East London
Barking and Dagenham
Barking and Dagenham is a borough on the rise, with Barking town centre leading the charge in regeneration and Dagenham on the top 10 most affordable places to buy a home in London list. Investors are eyeing Barking station, served by the District line and c2c services, as a hub for commuters. Nearby, Barking Riverside is transforming into a new neighbourhood, complete with its own Overground station.
In Dagenham, the upcoming Barking Riverside Overground extension is set to boost connectivity. Chadwell Heath, on the border with Redbridge, benefits from the Elizabeth line, making it an attractive spot for those seeking quick access to central London. Meanwhile, Becontree, home to one of Europe's largest housing estates, offers more affordable options with District line access via Becontree station.
Barking and Dagenham postcode districts include: IG11, RM5, RM6, RM7, RM8, RM9, and RM10.
Discover more about Barking buy-to-let.
Barking and Dagenham Property Prices
| Postcode | Average House Price £ | Average £ per sq ft | Average Rental Yield % |
|---|---|---|---|
| RM5 | £449,121 | £443 | 5.3% |
| RM7 | £411,752 | £446 | 5.2% |
| RM6 | £409,652 | £450 | 5.4% |
| RM8 | £382,816 | £449 | 6.2% |
| RM9 | £379,826 | £452 | 5.9% |
| RM10 | £364,244 | £439 | 6.7% |
| IG11 | £324,617 | £435 | 6.8% |
Barking and Dagenham Housing Market
| Postcode | Population | Density per square mile | Average Property Sales per Month |
|---|---|---|---|
| IG11 | 50,081 | 13,565 | 13 |
| RM8 | 38,998 | 24,256 | 14 |
| RM10 | 37,775 | 18,327 | 16 |
| RM9 | 35,524 | 14,158 | 11 |
| RM6 | 32,908 | 8,301 | 15 |
| RM7 | 27,411 | 9,917 | 13 |
| RM5 | 19,022 | 9,054 | 8 |
Bexley
Bexley is a suburban borough in southeast London, known for its green spaces, good schools, and relatively affordable housing. It's an attractive option for families and professionals seeking a quieter lifestyle with easy access to central London.
Bexleyheath, the borough's bustling centre, is well-connected with its own rail station offering services to London Bridge and Cannon Street. Nearby, Sidcup attracts families with its good schools and direct train links to Charing Cross. For those seeking riverside living, Erith is undergoing a facelift with new developments popping up along the Thames, all within reach of Erith station on the Southeastern line.
Crayford, with its mix of homes and green spaces, is another area to watch, served by Crayford station with links to London Bridge. Abbey Wood, on the borough's northern edge, has seen a surge of interest thanks to its new Elizabeth line station, offering rapid connections to central London and beyond.
Bexley postcode districts include: DA5, DA6, DA7, DA8, DA14, DA15, DA16, DA17, and DA18.
Bexley Property Prices
| Postcode | Average House Price £ | Average £ per sq ft | Average Rental Yield % |
|---|---|---|---|
| DA5 | £561,141 | £489 | 3.7% |
| DA6 | £504,754 | £462 | 4.0% |
| DA15 | £486,750 | £517 | 4.2% |
| DA16 | £471,371 | £470 | 4.8% |
| DA7 | £427,784 | £427 | 4.5% |
| DA14 | £419,431 | £439 | 4.3% |
| DA17 | £354,984 | £421 | 5.5% |
| DA8 | £330,737 | £393 | 5.9% |
| DA18 | £299,690 | £385 | 6.3% |
Bexley Housing Market
| Postcode | Population | Density per square mile | Average Property Sales per Month |
|---|---|---|---|
| DA16 | 35,900 | 13,954 | 21 |
| DA7 | 34,807 | 13,588 | 17 |
| DA8 | 32,927 | 10,514 | 15 |
| DA15 | 29,105 | 12,788 | 20 |
| DA14 | 21,889 | 6,204 | 9 |
| DA5 | 20,525 | 6,167 | 12 |
| DA17 | 17,128 | 11,297 | 11 |
| DA6 | 10,053 | 10,032 | 10 |
| DA18 | 4,851 | 8,920 | 14 |
Greenwich
Greenwich is a borough that blends history with modern living. The historic town of Greenwich, home to the famous Cutty Sark and Royal Observatory, is well-served by the DLR at Cutty Sark station and National Rail at Greenwich station. Just down the river, Woolwich is emerging as a hotspot, with the new Crossrail station at Woolwich Arsenal complementing existing DLR and National Rail links.
North Greenwich, home to the O2 Arena, offers sleek modern living with excellent Jubilee line connections. Charlton, nestled between Greenwich and Woolwich, provides a more suburban feel with its own rail station and is catching investors' eyes. Eltham, in the borough's south, offers a mix of period and modern homes, connected to central London via Eltham station on the Southeastern line.
Greenwich postcode districts include: SE2, SE3, SE7, SE10, SE12, SE13, SE18, and SE28.
Discover more about Greenwich buy-to-let.
Greenwich Property Prices
| Postcode | Average House Price £ | Average £ per sq ft | Average Rental Yield % |
|---|---|---|---|
| SE3 | £559,399 | £658 | 4.5% |
| SE10 | £538,294 | £724 | 4.9% |
| SE7 | £482,451 | £538 | 4.9% |
| SE12 | £473,668 | £514 | 4.5% |
| SE18 | £436,930 | £507 | 5.6% |
| SE13 | £432,187 | £599 | 5.0% |
| SE2 | £415,096 | £455 | 5.6% |
| SE28 | £347,149 | £465 | 6.1% |
Greenwich Housing Market
| Postcode | Population | Density per square mile | Average Property Sales per Month |
|---|---|---|---|
| SE18 | 75,876 | 22,119 | 34 |
| SE13 | 40,942 | 27,782 | 17 |
| SE3 | 31,310 | 13,253 | 23 |
| SE28 | 29,318 | 16,098 | 6 |
| SE12 | 27,346 | 13,842 | 18 |
| SE2 | 26,672 | 11,168 | 9 |
| SE10 | 23,745 | 19,497 | 29 |
| SE7 | 20,363 | 15,436 | 9 |
Havering
Havering, on London's eastern fringe, offers a mix of town and country. Romford, the borough's beating heart, is a major shopping destination with excellent transport links, including fast TfL Rail (soon to be Elizabeth line) services to Liverpool Street. Nearby, Gidea Park has seen renewed interest thanks to its new Elizabeth line station.
Hornchurch, with its mix of suburban comfort and local amenities, is served by the District line at Hornchurch station. Upminster, at the end of the District line, offers a more village-like atmosphere with its windmill and golf courses. For those seeking more affordable options, Rainham in the south of the borough offers good value, with rail connections to Fenchurch Street and potential for growth due to ongoing regeneration plans.
Havering postcode districts include: RM1, RM2, RM3, RM4, RM11, RM12, RM13, and RM14.
Discover more about Havering buy-to-let.
Havering Property Prices
| Postcode | Average House Price £ | Average £ per sq ft | Average Rental Yield % |
|---|---|---|---|
| RM4 | £800,813 | £505 | 4.1% |
| RM14 | £662,235 | £517 | 3.0% |
| RM11 | £599,105 | £488 | 4.2% |
| RM2 | £583,273 | £492 | 3.5% |
| RM12 | £483,403 | £476 | 4.4% |
| RM13 | £431,801 | £433 | 5.3% |
| RM1 | £416,354 | £455 | 4.7% |
| RM3 | £402,717 | £435 | 5.6% |
Havering Housing Market
| Postcode | Population | Density per square mile | Average Property Sales per Month |
|---|---|---|---|
| RM3 | 40,267 | 9,576 | 27 |
| RM12 | 34,603 | 12,232 | 19 |
| RM11 | 31,338 | 9,577 | 22 |
| RM13 | 28,416 | 3,388 | 18 |
| RM14 | 26,905 | 1,277 | 21 |
| RM1 | 20,053 | 11,731 | 15 |
| RM2 | 13,240 | 10,330 | 10 |
| RM4 | 4,284 | 253 | 2 |
Lewisham
Lewisham is a borough on the move, quite literally. Lewisham town centre is undergoing a major transformation, anchored by its busy transport hub offering DLR and National Rail services. Nearby Deptford, with its trendy high street and Deptford Bridge DLR station, is attracting young creatives priced out of nearby Greenwich.
Forest Hill, served by the Overground, offers a more laid-back vibe with its acclaimed Horniman Museum and hilltop views. Catford, with its iconic cat sign, is next in line for regeneration, with Catford and Catford Bridge stations providing links to central London.
New Cross, home to Goldsmiths University, has a youthful energy and excellent transport links with New Cross and New Cross Gate stations on the Overground.
Lewisham postcode districts include: SE4, SE6, SE8, SE14, SE15, SE23, and SE26.
Discover more about Lewisham buy-to-let.
Lewisham Property Prices
| Postcode | Average House Price £ | Average £ per sq ft | Average Rental Yield % |
|---|---|---|---|
| SE4 | £565,304 | £668 | 4.3% |
| SE15 | £526,270 | £692 | 5.3% |
| SE23 | £512,844 | £617 | 4.4% |
| SE6 | £472,709 | £525 | 4.4% |
| SE26 | £467,313 | £587 | 4.4% |
| SE8 | £446,555 | £644 | 5.5% |
| SE14 | £429,732 | £637 | 5.4% |
Lewisham Housing Market
| Postcode | Population | Density per square mile | Average Property Sales per Month |
|---|---|---|---|
| SE15 | 63,542 | 28,681 | 29 |
| SE6 | 52,924 | 20,469 | 20 |
| SE23 | 33,682 | 21,177 | 22 |
| SE4 | 28,595 | 23,940 | 16 |
| SE26 | 28,455 | 20,183 | 15 |
| SE8 | 27,412 | 34,944 | 12 |
| SE14 | 24,781 | 26,780 | 8 |
Newham
Newham, home of the 2012 Olympics, continues to evolve at an Olympic pace. Stratford, the borough's crown jewel, boasts unparalleled connectivity with its major transport hub serving the Central and Jubilee lines, DLR, Overground, and TfL Rail. The nearby Olympic Park and Westfield shopping center have transformed the area into a major destination. Canning Town, with its DLR and Jubilee line station, is seeing rapid development of sleek new apartment blocks.
Forest Gate, now on the Elizabeth line, offers period homes and a diverse community. East Ham, served by the District and Hammersmith & City lines, provides more affordable options with its vibrant high street and multicultural atmosphere. The Royal Docks area, including Custom House with its new Elizabeth line station, is emerging as a new waterfront quarter for London.
Newham postcode districts include: E3, E6, E7, E12, E13, E15, E16, and E20.
Discover more about Newham buy-to-let.
Newham Property Prices
| Postcode | Average House Price £ | Average £ per sq ft | Average Rental Yield % |
|---|---|---|---|
| E20 | £512,346 | £658 | 4.9% |
| E16 | £442,435 | £575 | 6.1% |
| E3 | £441,858 | £656 | 6.3% |
| E13 | £436,935 | £519 | 5.1% |
| E15 | £432,696 | £623 | 5.2% |
| E7 | £424,354 | £531 | 4.9% |
| E12 | £419,873 | £477 | 4.7% |
| E6 | £368,657 | £402 | 5.7% |
Newham Housing Market
| Postcode | Population | Density per square mile | Average Property Sales per Month |
|---|---|---|---|
| E6 | 78,979 | 19,985 | 13 |
| E7 | 54,530 | 39,438 | 14 |
| E15 | 52,199 | 26,143 | 20 |
| E3 | 51,618 | 38,887 | 28 |
| E13 | 46,923 | 38,671 | 15 |
| E16 | 44,880 | 16,632 | 23 |
| E12 | 41,869 | 21,301 | 11 |
| E20 | 105 | 15,182 | 7 |
Redbridge
Redbridge offers a slice of suburban life with excellent city connections. Ilford, the borough's main hub, is buzzing with regeneration activity, spurred on by the arrival of the Elizabeth line at Ilford station. Nearby Seven Kings, also on the Elizabeth line, is seeing renewed interest from investors.
Wanstead, served by the Central line, offers a village-like atmosphere with its independent shops and proximity to Epping Forest. South Woodford, also on the Central line, is popular with families for its good schools and leafy streets. Woodford, at the northern tip of the Central line, provides a more upmarket suburban experience. Gants Hill, with its Central line station and iconic roundabout, offers a mix of period and modern homes popular with young professionals.
Redbridge postcode districts include: E11, E18, IG1, IG2, IG3, IG4, IG5, IG6, IG7, and IG8.
Discover more about Redbridge buy-to-let.
Redbridge Property Prices
| Postcode | Average House Price £ | Average £ per sq ft | Average Rental Yield % |
|---|---|---|---|
| IG7 | £750,691 | £524 | 4.8% |
| E18 | £675,372 | £552 | 3.2% |
| IG4 | £669,680 | £494 | 3.9% |
| IG8 | £658,262 | £550 | 3.5% |
| IG5 | £613,302 | £483 | 4.2% |
| E11 | £535,076 | £585 | 3.9% |
| IG3 | £530,146 | £462 | 3.9% |
| IG6 | £527,621 | £486 | 4.6% |
| IG1 | £472,028 | £444 | 4.2% |
| IG2 | £436,113 | £484 | 4.9% |
Redbridge Housing Market
| Postcode | Population | Density per square mile | Average Property Sales per Month |
|---|---|---|---|
| IG1 | 63,569 | 26,014 | 13 |
| E11 | 54,998 | 16,527 | 10 |
| IG8 | 35,894 | 10,915 | 19 |
| IG3 | 35,543 | 21,419 | 13 |
| IG2 | 28,252 | 23,333 | 8 |
| IG6 | 27,824 | 12,631 | 11 |
| IG7 | 19,991 | 3,097 | 11 |
| E18 | 19,152 | 17,260 | 14 |
| IG5 | 16,823 | 17,788 | 4 |
| IG4 | 9,455 | 14,766 | 3 |
Tower Hamlets
Tower Hamlets is a borough of contrasts, home to the financial district of Canary Wharf as well as more diverse and historically significant areas. It offers a mix of modern apartments and period properties, with strong rental demand from young professionals.
Canary Wharf, with its gleaming skyscrapers, offers high-end living and is served by the Jubilee line, DLR, and the new Elizabeth line station. Nearby Poplar and Blackwall, both on the DLR, are seeing spillover interest from Canary Wharf. Whitechapel, soon to be an Elizabeth line station, is undergoing major regeneration while retaining its vibrant multicultural character.
Bethnal Green, on the Central line, attracts young creatives with its mix of Victorian terraces and trendy bars. Bow, served by the District and Hammersmith & City lines at Bow Road, offers a mix of period conversions and new builds. Stepney Green, also on the District and Hammersmith & City lines, provides more affordable options close to the city.
Tower Hamlets postcode districts include E1 and E14.
Tower Hamlets Property Prices
| Postcode | Average House Price £ | Average £ per sq ft | Average Rental Yield % |
|---|---|---|---|
| E1 | £611,748 | £816 | 5.3% |
| E14 | £569,991 | £791 | 5.1% |
Tower Hamlets Housing Market
| Postcode | Population | Density per square mile | Average Property Sales per Month |
|---|---|---|---|
| E14 | 79,763 | 39,360 | 47 |
| E1 | 69,188 | 47,476 | 31 |
Waltham Forest
Waltham Forest, named London Borough of Culture 2019, is quickly becoming a hotspot for young families and professionals. Walthamstow, at the end of the Victoria line, has transformed from a hidden gem to a sought-after area with its quirky Walthamstow Village and bustling market. Nearby Blackhorse Road, where the Victoria line meets the Overground, is seeing rapid development of new apartment blocks.
Leyton, on the Central line, offers more affordable options and is benefiting from the Olympic legacy with improved amenities. Leytonstone, also on the Central line, provides a good mix of period homes and local shops.
Chingford, at the northeastern tip of the borough, offers a more suburban feel with its Overground station providing links to Liverpool Street. The Walthamstow Wetlands, Europe's largest urban wetland, adds a unique natural asset to the borough's appeal.
Waltham Forest postcode districts include: E4, E10, and E17.
Discover more about Waltham Forest buy-to-let.
Waltham Forest Property Prices
| Postcode | Average House Price £ | Average £ per sq ft | Average Rental Yield % |
|---|---|---|---|
| E4 | £563,868 | £532 | 4.1% |
| E17 | £545,432 | £662 | 4.2% |
| E10 | £477,557 | £600 | 4.3% |
Waltham Forest Housing Market
| Postcode | Population | Density per square mile | Average Property Sales per Month |
|---|---|---|---|
| E17 | 102,968 | 20,307 | 43 |
| E4 | 60,225 | 9,321 | 28 |
| E10 | 42,953 | 25,550 | 23 |
Conclusion
East London's property market offers a diverse landscape for buy-to-let investors, with each borough presenting unique opportunities. The region showcases a wide range of average property prices, from £299,690 in DA18 (Bexley) to £800,813 in RM4 (Havering). This price diversity is complemented by varying rental yields, spanning from 3.0% in RM14 (Havering) to 6.8% in IG11 (Barking and Dagenham). For investors prioritizing immediate returns, areas like IG11 present an attractive proposition, with the potential for annual rental income of approximately £22,074 on an average-priced property before expenses.
The investment landscape in East London is further characterised by its varied population densities and property sales rates. Tower Hamlets, for instance, exhibits some of the highest population densities in the region, with E1 and E14 showing 47,476 and 39,360 people per square mile respectively. These areas also demonstrate high average monthly property sales, with 31 in E1 and 47 in E14. Such figures suggest a dynamic market with potentially high tenant demand, although investors should consider the implications of high-density living on property maintenance. In contrast, areas like RM4 in Havering present a markedly different profile with a density of just 253 people per square mile and an average of 2 property sales per month, potentially offering a quieter, suburban investment option.
The diversity of East London's property market extends to the average price per square foot, ranging from £384.75 in DA18 (Bexley) to £816 in E1 (Tower Hamlets). This variation reflects the different character and appeal of each area. For instance, while E1 commands the highest price per square foot, it also offers a competitive rental yield of 5.3%.
Conversely, areas like RM10 in Barking and Dagenham offer a more modest £439.05 per square foot but a higher rental yield of 6.7%.
These figures illustrate the trade-offs buy-to-let investors must consider between property values, rental income, and potential tenant demand across different parts of East London.
Success in this market requires careful analysis of all these factors, aligning them with specific property strategies, whether you are considering buy-to-let, houses of multiple occupation, purpose built student accomodation or holiday lets.
To get a comprehensive view of London's buy-to-let market, be sure to explore our companion guides on North London, South London, and West London investment opportunities, which offer insights into the unique characteristics and potential of each region.