The east of London has now decisively overtaken the centre and west on yield. Tower Hamlets and Newham — both Crossrail/Elizabeth Line corridors with concentrated young professional tenant demand — recorded the largest annual yield gains in the capital, both up 0.8 percentage points year-on-year.
| Borough | Avg Gross Yield | Avg Property Price (Mar 2026) | 1-Year Change |
|---|---|---|---|
| Tower Hamlets | 6.3% | £499,000 | +0.8 pp |
| Newham | 6.0% | £382,000 | +0.8 pp |
| Barking and Dagenham | 5.6% | £361,000 | +0.4 pp |
| Lambeth | 5.5% | £554,000 | +0.4 pp |
| Hackney | 5.1% | £611,000 | flat |
| Southwark | 5.1% | ~£560,000 | +0.2 pp |
| Greenwich | 5.0% | £466,000 | flat |
| Richmond upon Thames | 3.5% | £790,000 | flat |
| Kensington and Chelsea | 3.4% | £1.26m | -0.1 pp |
Sources: borough yields from Benham & Reeves, June 2026; average prices from HM Land Registry UK House Price Index, March 2026.
Where investors are buying in 2026
For yield-focused investors, the strongest combinations of yield + capital growth potential are along the East London / Elizabeth Line corridor – Stratford (E15), East Ham (E6), Tower Hamlets (E1, E3, E14), Thamesmead (SE28) and Barking (IG11) — where new-build BTL stock is delivering gross yields of 5.5–6.5% on entry prices typically £350,000–£500,000 (MaddisonV Properties, June 2026, IREIS Properties, May 2026). For balanced yield + growth, Islington, Battersea, Clapham and Bermondsey offer 4–6% yields with stronger long-term capital appreciation.