Barking and Dagenham is the best place to invest in London, in 2025. With an average rental yield of 6.18%. Croydon is the second-best place to invest, with Greenwich taking third place.
Below are the 5 best London boroughs to invest in property, sorted by the average rental yield.
| Rank | London Borough | Average House Price | Average Weekly Rent | Average Rental Yield | 5 Year Property Price Growth |
|---|---|---|---|---|---|
| 1 | Barking and Dagenham | £375,136 | £443 | 6.18% | 16.68% |
| 2 | Croydon | £458,598 | £403 | 5.45% | 14.69% |
| 3 | Greenwich | £457,099 | £454 | 5.24% | 9.90% |
| 4 | Lewisham | £494,759 | £444 | 5.19% | 10.95% |
| 5 | Enfield | £471,356 | £428 | 5.00% | 16.33% |
Source: Property Investments UK
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Barking and Dagenham lead the way for rental yields in London, thanks to a combination of low property prices and relatively high rents. With average house prices just over £375,000, the cheapest of any London borough, and rent prices that are far from the lowest, landlords here enjoy a strong return on investment. On average, a landlord in Barking and Dagenham can earn more than £23,000 per year in rental income from a single property.
Barking and Dagenham has also seen a rise in popularity among movers, according to Compare My Move data. Between 2023 and 2024, the number of people relocating to the borough jumped by 37.4%. This increase is likely driven by Barking and Dagenham’s relatively affordable house prices compared to the rest of Greater London.
Croydon comes in as the second-best place to invest in London, with an average rental yield of 5.45%. Although the average house price of Croydon is a lot more than Barking and Dagenham, Croydon is still one of the cheapest areas on the list to buy a house and is the main reason why the rental yield is so high.
If you’re looking to invest a little closer to the centre of London, the zone 2/3 borough of Greenwich comes in as the third best place to invest in the capital. Despite being so close to central London, the property prices in Greenwich are relatively low, the second cheapest in the top 5 list, meaning the rental yield remains quite high.
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See the complete list of the best places to invest in property in the UK below.
| Rank | London Borough | Average House Price | Average Weekly Rent | Average Rental Yield | 5 Year Property Price Growth |
|---|---|---|---|---|---|
| 1 | Barking and Dagenham | £375,136 | £443 | 6.18% | 16.68% |
| 2 | Croydon | £458,598 | £403 | 5.45% | 14.69% |
| 3 | Greenwich | £457,099 | £454 | 5.24% | 9.90% |
| 4 | Lewisham | £494,759 | £444 | 5.19% | 10.95% |
| 5 | Enfield | £471,356 | £428 | 5.00% | 16.33% |
| 6 | Southwark | £585,077 | £490 | 4.93% | 6.34% |
| 7 | Hackney | £590,612 | £542 | 4.82% | 6.60% |
| 8 | Lambeth | £671,594 | £536 | 4.81% | 5.69% |
| 9 | Merton | £611,130 | £483 | 4.70% | 14.96% |
| 10 | Kingston upon Thames | £603,757 | £468 | 4.61% | 16.37% |
| 11 | Hounslow | £507,230 | £440 | 4.61% | 17.98% |
| 12 | Brent | £546,619 | £472 | 4.58% | 15.67% |
| 13 | Islington | £669,403 | £588 | 4.56% | 0.42% |
| 14 | Bexley | £456,207 | £392 | 4.55% | 18.23% |
| 15 | Ealing | £520,921 | £449 | 4.54% | 13.98% |
| 16 | Hillingdon | £525,081 | £420 | 4.38% | 13.36% |
| 17 | Wandsworth | £720,927 | £604 | 4.35% | 3.95% |
| 18 | Haringey | £572,518 | £463 | 4.34% | 12.66% |
| 19 | Richmond upon Thames | £656,412 | £501 | 4.16% | 12.99% |
| 20 | Bromley | £557,925 | £398 | 4.14% | 17.68% |
| 21 | Sutton | £520,414 | £407 | 4.12% | 15.35% |
| 22 | Harrow | £564,748 | £438 | 4.08% | 20.82% |
| 23 | Hammersmith and Fulham | £828,346 | £646 | 4.08% | -4.40% |
| 24 | Camden | £951,848 | £702 | 4.07% | -2.63% |
| 25 | City of London | £984,320 | £728 | 4.00% | -4.75% |
| 26 | City of Westminster | £1,325,108 | £893 | 3.64% | -8.49% |
| 27 | Barnet | £746,508 | £485 | 3.53% | 14.89% |
| 28 | Kensington and Chelsea | £1,468,097 | £872 | 3.23% | -0.03% |
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