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Tower Hamlets and Newham offer the highest buy-to-let rental yields in London and have recorded the strongest annual yield growth, as rising rents and softer property prices continue to improve investor returns across the capital. The average gross rental yield across London increased to 5.0% in March 2026, up from 4.9% a year earlier. Tower Hamlets tops the rankings with a yield of 6.3%, rising from 5.5% in 2025, while Newham follows at 6.0%, up from 5.2%. Other high-yielding boroughs include Barking and Dagenham (5.6%), Lambeth (5.5%), Hackney and Southwark (both 5.1%), and Greenwich (5.0%). In contrast, Kensington and Chelsea recorded the lowest yield at 3.4%, followed by Richmond upon Thames at 3.5% and Kingston upon Thames at 3.8%. Tower Hamlets and Newham also posted the largest annual yield increases, both rising by 0.8 percentage points. Most boroughs saw gains, while only Brent and Waltham Forest experienced slight declines of 0.1 percentage points. |
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Property Reporter (10/06/2026) |