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Best Rental Yields in London Quarter 1

February 25, 2021

2020 was a difficult year for landlords, but the Government’s recent announcement of the road out of lockdown signals the promise of improved economic conditions. That should have a positive impact on the property market and a better outlook for investors through 2021.

With that in mind, we looked at some of the property hotspots that are currently offering the best rental yields in the four geographical areas of London. As our rental yield map shows, these are just a few of the areas that you may find of interest as economic conditions continue to improve.

NORTH LONDON

Brimsdown – 5.6%

Brimsdown is set to benefit from the arrival of Crossrail at its existing station. To date the area has been seen as primarily commercial and industrial with its proximity to the M25. It has the potential for redevelopment and regeneration but has been hampered by poor transport connections. Crossrail should change that, making Brimsdown an attractive long-term investment opportunity.

Edmonton – 5.3%

When we drill down into the area, there are a number of surprising pockets. Edmonton is a good example. It’s part of the borough of Enfield, but has a different character. It’s a vibrant, busy and multicultural area with many attractive parks. Property is very affordable here too and Edmonton will benefit from the £1.5 billion Meridian Water redevelopment forecast to bring 3,000 new jobs and 5,000 new homes, and no doubt increase desirability to rent in the area.

Enfield – 4.6%

Enfield is a relatively quiet borough on the northern edge of London, bordering the Essex and Hertfordshire countryside. It has good transport links by road and rail. It’s close to the M25, North Circular Road and the A10, and easily accessible to central London by the Piccadilly Line or the Overground, getting commuters into Liverpool Street in around 40 minutes. Enfield’s Green Lanes is a popular spot, where you can find Sainsbury's, Waitrose and a string of nice restaurants.

For such an attractive suburb, property prices are low. Enfield has the cheapest house prices in North London at an average of around £400,700 and yields are among the highest in North London. The street ‘Adamsrill Close’ in Enfield is becoming a popular landlord hotspot, where the average house costs just £275,000 - less than half of the average house price in London.

Tottenham Hale – 4.5%

Tottenham Hale is to the east of Tottenham and it’s an area undergoing high levels of regeneration. 2,000 new homes are set to be built in an area that will feature new offices, shops, cafes and a refurbished station, Transport links by the Victoria Line are fast and there is abundant green space close to the Lea Valley Regional Park.

Read More: How Is Rental Yield Calculated?

SOUTH LONDON

Mitcham – 4.9%

Mitcham is part of the borough of Merton, an upmarket residential area that’s home to Wimbledon, yet just a short commute to central London. Mitcham is in the east of the borough and has many large properties as well as attractive green spaces like Mitcham Common. Despite its attractive setting, properties here are more affordable than the rest of Merton and that makes it popular with families and retired people.

South Beddington – 4.7%

South Beddington is in the outer London borough of Sutton, close to Croydon. It retains its Surrey village feel and, like the rest of Sutton, features a number of large properties. South Beddington is a commuter area with national rail links to London, offering an attractive quality of life for families. The wider area of Sutton is benefitting from investment of more than £400 million, including a complete redevelopment of the town centre, the provision of 5,000 homes, and new dining options. The main infrastructure development however and one that landlords will be interested to hear is the extension of the Tramlink, which would run from the north to the south of the borough and could see house prices and rental prices increase significantly as a result.

Willowbrook Estate, Peckham – 4.7%

Peckham has been described as ‘the hipster capital of South London’. It’s an area that is proving attractive to young professionals and creatives who enjoy the vibrant night and social life of the district. The Willowbrook Estate, one of Peckham’s ‘great estates’, has seen considerable refurbishment that has transformed it from an unfashionable neighbourhood to an up and coming place to live - and one that landlords looking to invest should keep their eyes on.

3 Bedrooms, 1 Bathroom

Carlton Grove, Peckham, SE15

£485,000 (Freehold)

View property details.


1 Bedroom, 1 Bathroom

Ivanhoe Road, Camberwell, SE5

£334 per week (£1,450 pcm)  tenancy info

View property details.

EAST LONDON

Barking – 5.9%

Barking has seen significant redevelopment recently aimed at making the town a more attractive place to live. The town centre has seen regeneration with new retail and business spaces, and more new homes. With house prices around one third of the London average, there are plenty of affordable investment opportunities.




2 Bedrooms, 1 Bathroom

Forsythia Close, Barking, IG1

£280,000 (Leasehold)

View property details.


Upney – 5.8%

Upney is in the east of the borough of Barking & Dagenham and has its own underground station for easy access to central London. Average property prices are higher than the rest of the borough, but there are plenty of investment bargains available.



1 Bedroom, 1 Bathroom

Ripple Road, Barking, IG11 (0.4M from Upney station)

£249,995 (Leasehold)

View property details.

Wall End – 5.8%

Wall End in East Ham is a very small multicultural community close to the River Roding. It has many older properties at very low prices, ideal for the largely family-based community with around one quarter of the population under the age of 15. Although it lacks facilities, Wall End has good transport links and is an ideal area for finding investment bargains.

East Ham – 5.5%

East Ham is in the borough of Newham, an area that has also seen rapid property price increases, thanks in part to the arrival of the Olympic Park. East Ham itself is a vibrant multicultural area that has a traditional East End community feel and many attractive older properties at affordable prices. It’s also a very young community with an average age of early 30s.

Barking & Dagenham – 5.4%

This outer London borough has seen rapid property price growth yet still offers some of the most affordable properties in London. There is a good mix of large homes and flats. Major investment will see almost 50,000 new homes and 20,000 new jobs planned for the next 20 years, with exciting new leisure and community facilities at Barking Riverside.



1 Bedroom, 1 Bathroom

Butteridges Close, Dagenham, RM9

£199,995 (Leasehold)

View property details.

WEST LONDON

Hayes & Harlington – 5.1%

This area shares West Drayton’s prospects with its own Crossrail station increasing its attraction. But, Hayes is also being transformed into a high-tech business zone that’s already attracting global companies in a break with its industrial past. To meet the demands of this growing employment hub, there’s a £250 million development on a former EMI site to create around 650 new homes as well as commercial and leisure space.

Wembley – 4.8%

Wembley in the borough of Brent is known first and foremost for its iconic football stadium, but its attraction for investors is regeneration – one of the largest schemes in the UK. As well as new homes, there are many new leisure and cultural facilities to add to Wembley’s hundreds of existing stores and restaurants. Many of the new homes feature WiFi, onsite gyms and shared workspaces. With connections to central London less than 15 minutes away, Wembley represents a very attractive opportunity.

West Drayton – 4.7%

West Drayton in the borough of Hillingdon is set for rapid growth with the arrival of Crossrail. Average property values are lower than surrounding districts and the area is a strong employment hub, attracting employees from Heathrow Airport and Stockley Business Park, one of the largest business parks in Europe.

Find out more

This is just a small selection of areas that are demonstrating high yields for investors. If you would like to find out more about investment opportunities in these or other areas, we can help. Please contact our property experts on 020 7099 4000.!!!

Get an instant online property valuation, or find out the potential rent you could earn from your home with our online rental calculator.

Rental yields stated here correct as of 17/02/21 according to the Portico rental yield map. Click here to use our rental yield map and drill down into other areas of London. 




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