Rental yields›Kensington and Chelsea
Rental yield in Kensington and Chelsea
Kensington and Chelsea has one of the lowest average gross rental yields in England and Wales, typical of higher-priced areas where the rent does not keep pace with the purchase price.
Over the past year, average prices in Kensington and Chelsea fell 14.7% and average rents rose 0.8%.
Gross yield
3.5%
Average price
£1,250,149
↓ -14.7% / yr
Average rent
£3,629/mo
↑ +0.8% / yr
National rank
#300 of 316
Who rents here
Census 2021, 66,884 households
39.6% of homes in Kensington and Chelsea are private rentals.
Average rent by size
1 bedroom
£2,597/mo
↑ +1.5% / yr
2 bedrooms
£3,371/mo
↑ +1.2% / yr
3 bedrooms
£4,004/mo
↑ +1.2% / yr
4+ bedrooms
£5,555/mo
↑ +0.2% / yr
Average advertised rent by number of bedrooms. ONS Price Index of Private Rents (2026-07).
Council tax bands (2026-27)
Band A
£1,111
Band B
£1,297
Band C
£1,482
Band D
£1,667
Band E
£2,037
Band F
£2,408
Band G
£2,778
Band H
£3,334
Average annual bill for the area, including police and other precepts (MHCLG and Welsh Government, 2026-27). Community precepts vary, and the band is set by the property, so check the exact band on gov.uk.
Work out the yield on a specific property
Pre-filled with the Kensington and Chelsea average. Change them for a real property.
That is right on the Kensington and Chelsea average of 3.5%. Add costs for a net estimate.
How it compares
Areas with a similar yield
Common questions
Is Kensington and Chelsea a good place to buy to let?
For rental income it is one of the weaker areas, at a 3.5% average gross yield. Places like this are usually bought for expected price growth or lifestyle rather than cash flow.
Are rents rising in Kensington and Chelsea?
Over the past year, average rents in Kensington and Chelsea rose 0.8% and average prices fell 14.7% (HM Land Registry and ONS, to 2026-07).
Is there rental demand in Kensington and Chelsea?
Rent movement is the best free proxy for tenant demand, and average rents in Kensington and Chelsea rose 0.8% over the past year (ONS), which points to tenants competing for available stock. Still ask local letting agents about typical void periods before committing to a buy-to-let there. For the size of the market: at the 2021 census, 39.6% of Kensington and Chelsea's 66,884 households rented privately (27.6% social rented, 31.7% owner occupied).
What is the average rent for a 1, 2 or 3 bedroom property in Kensington and Chelsea?
As of 2026-07, average monthly rents in Kensington and Chelsea by property size are £2,597 for a 1 bedroom property, £3,371 for a 2 bedroom property, £4,004 for a 3 bedroom property, £5,555 for a 4 or more bedroom property (ONS). The all-size average is £3,629 a month.
How much is council tax in Kensington and Chelsea?
In 2026-27, the average Band D council tax in Kensington and Chelsea is £1,667 a year including police and other precepts. Bills scale with the property's band: from £1,111 for Band A up to £3,334 for Band H. Community precepts vary within the area, so treat these as area averages and check the exact band and bill with the council.
What is a good rental yield in the UK?
As a rough guide, under 4% is low, 5 to 6% is typical, and above 6.5% is high. Kensington and Chelsea is at 3.5%.
Gross yield = annual rent divided by average price. Average price: HM Land Registry UK HPI (01/06/2026). Average rent: ONS Price Index of Private Rents (2026-07). Local-authority averages across all property types, indicative only. Contains public sector information licensed under the Open Government Licence v3.0. Not investment advice.