East London offers the best rental yields in the capital, according to the latest data-analysis by estate agent Portico. Its interactive rental yield map shows that within east London, Barking has one of the lowest median house prices across Greater London at just over £300,000 and the best current rental yield at 5.9%. The area has enjoyed significant redevelopment in recent times, which is being reflected in demand from tenants.

Not too far away, Upney is to the east of the same borough and appears second in the table at 5.8%. While property prices are slightly higher than in other parts of the district, landlords can still find investment bargains, the firm says.

Third on the east London table comes Wall End, also boasting a 5.8% yield. The neighbourhood is within East Ham, near the River Roding, with good transport links and benefitting from older, lower-priced properties. 

Across the rest of the capital, north London’s Brimsdown offers a healthy yield of 5.6%. The best yield in the west is 5.1% in Hayes and Harlington, and in the south, Mitcham offers 4.9%.

As a comparison, according to Zoopla, London’s average gross rental yield was 3.8% in December 2020, down from 4.2% in February and 5.9% at its September 2012 peak. At the end of last year, the UK average was 5.3%.