Which Area in East London Has the Best Rental Yield?
If you are thinking about investing in property, East London is one of the best places to look. It has some of the highest rental yields in the city, making it a great option for buy-to-let investors. Areas like Purfleet, Barking, and Dagenham stand out for their strong returns. With house prices lower than central London but rental demand staying high, East London offers a good balance of affordability and income potential.
The Best Areas in East London for Rental Yields
Why East London is Popular with Landlords
East London is a favourite among property investors because of its affordability, strong rental demand, and improving transport links. Many areas are undergoing regeneration, which makes them even more appealing for renters and landlords alike.
Highest Rental Yields in East London
If you are looking for the best returns, here are the top areas for rental yields right now:
1. Purfleet (RM19) – 7% Yield
Purfleet has the highest rental yield in East London. With an average property price of in the range of £235k and average weekly rent of £330 it is a great option for investors. The area is well-connected and more affordable than many parts of London, making it attractive to tenants.
2. Barking (IG11) – 7% Yield
Barking is a growing area with excellent transport links, including the Elizabeth Line. House prices here average £325k, while weekly rents stand at around £420. Regeneration projects have made Barking a strong choice for landlords.
3. Dagenham (RM10, RM8, RM9) – 6% to 6.5% Yield
Dagenham is a consistent performer for rental yields. Property prices range between £370k, with weekly rents at around £450. The District Line makes it easy to reach central London, adding to its appeal for tenants.
4. Bow (E3) – 6% Yield
Bow is a great option if you want both rental income and long-term property growth. It is close to Canary Wharf and Stratford, with an average property price of £440k and weekly rent of £530.
5. Canning Town (E16) – 6% Yield
Canning Town has transformed in recent years, thanks to big regeneration projects. With an average property price of £440k and weekly rent of £510, it remains a solid choice for investors.
Maximise Your Rental Income with the Right Strategy
Unsure whether to include bills in your rent? Our expert team can help you find the best approach to attract tenants while protecting your profits.
What Makes These Areas Good for Rental Yields?
1. Regeneration and Investment
Many parts of East London are changing fast, with new homes, businesses, and transport links improving the area. This keeps demand high for rental properties.
2. Affordable Property Prices
Compared to central London, house prices in East London are lower, meaning investors can buy properties without spending a fortune while still earning strong rental income.
3. Strong Demand from Tenants
With a mix of professionals, students, and families looking for rental homes, there is rarely a shortage of tenants in East London. Good transport links to Canary Wharf and the City of London also help keep demand high.
4. Proximity to Major Employers
Many people who work in Canary Wharf, Stratford, and central London choose to rent in East London because it offers better value for money while still being well-connected.
Find Reliable Tenants for Your Bills-Included Property
Offering utilities-inclusive rent? We’ll help you find tenants who appreciate the convenience while ensuring fair usage and on-time payments.
Why Rental Yields Can Change
1. Market Trends
Rental yields go up and down depending on property prices, rental demand, and wider economic conditions. Keeping an eye on the market can help investors make smart decisions.
2. Seasonal Changes
Demand for rental properties can rise and fall at different times of the year, which affects yields. Summer months tend to be busier as more people move home.
3. Future Growth and Development
New transport links and housing developments can push up property prices, which might impact rental yields. Areas with ongoing improvements are often good for long-term investments.
Thinking of Investing in East London?
If you are considering a buy-to-let investment, East London has plenty of great options. With high yields, growing demand, and property prices that are still more affordable than other parts of the capital, it is a great place to look for opportunities. Doing your research and keeping an eye on market trends can help you make the most of your investment.
Common Questions About Rental Yields
Q: What is a good rental yield in East London?
A: Anything above 5% is considered good. Many areas in East London offer yields of 6% or more, making them some of the best choices for investors.
Q: Why does East London have higher rental yields than central London?
A: House prices are lower in East London, but rental demand is high, which means you can get a better return on investment compared to expensive areas in central London.
Q: Is East London a good area for buy-to-let?
A: Yes, East London has strong tenant demand, ongoing development, and good transport links, making it one of the best places for buy-to-let properties.
Q: Which areas in East London are best for long-term property growth?
A: Barking, Canning Town, Bow, and Dagenham are great for both rental income and long-term growth, thanks to ongoing regeneration and demand.
A prices change over time for property prices and rents please check and calculate the particular yield for your chosen property.
Simplify Your Rental Property Management
Managing tenant bills can be time-consuming. Let us handle everything, from utility management to tenant support, ensuring a stress-free experience for you.
