Rental yields›London›Kensington and Chelsea
Rental yield in Kensington and Chelsea
39.6% of households in Kensington and Chelsea rent privately, one of the highest shares in England and Wales.
Kensington and Chelsea sits in the lower half for rental yield in England and Wales, a little below the 4.4% typical figure across all 316 areas.
Over the past year, average prices in Kensington and Chelsea fell 14.1% and average rents rose 2.1%.
Average gross yield
3.6%
#290 of 316 areas
Average price
£1,232,640
▼ 14.1% past year
Average rent
£3,690/mo
▲ 2.1% past year
Privately rented
39.6%
of 66,884 homes
Average rent by size
1 bedroom
£2,640/mo
↑ +2.7% / yr
2 bedrooms
£3,428/mo
↑ +2.5% / yr
3 bedrooms
£4,074/mo
↑ +2.5% / yr
4+ bedrooms
£5,650/mo
↑ +1.6% / yr
Average private rent by number of bedrooms, across new and existing tenancies. ONS Price Index of Private Rents (August 2026).
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.
How it compares
Deprivation (IMD 2025)
101 neighbourhoods
3% of Kensington and Chelsea's neighbourhoods are in England's most deprived 10%. The typical one sits in the less deprived half of the country.
Fifths of England, most to least deprived (MHCLG IMD 2025). It shifts street by street, so check a specific postcode.
82 Article 4 areas are recorded in Kensington and Chelsea, none of them tagged as restricting HMO conversions; 1 restrict commercial-to-residential conversions. The dataset is incomplete, so check the exact postcode before planning an HMO.
Check on the Article 4 map →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 3.6%. Add costs for a net estimate.
Nearby areas
Areas with a similar yield
Common questions
Is Kensington and Chelsea a good place to buy to let?
It is around the middle for rental income, at a 3.6% average gross yield. Whether it works depends on the specific property, so always run the actual numbers.
Are rents rising in Kensington and Chelsea?
Over the past year, average rents in Kensington and Chelsea rose 2.1% and average prices fell 14.1% (HM Land Registry and ONS, to August 2026).
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 2.1% 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 August 2026, average monthly rents in Kensington and Chelsea by property size are £2,640 for a 1 bedroom property, £3,428 for a 2 bedroom property, £4,074 for a 3 bedroom property, £5,650 for a 4 or more bedroom property (ONS). The all-size average is £3,690 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.
How deprived is Kensington and Chelsea?
On the English Indices of Deprivation 2025, 3% of Kensington and Chelsea's 101 neighbourhoods are in England's most deprived 10%, and 0% are in the least deprived 10%. The typical neighbourhood is in decile 6 of 10, where 1 is most deprived. Deprivation shifts street by street, so check the exact postcode before you offer.
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 3.6%.
Gross yield = annual rent divided by average price. Average price: HM Land Registry UK HPI (July 2026). Average rent: ONS Price Index of Private Rents (August 2026). Deprivation: MHCLG English Indices of Deprivation 2025. Regions: ONS. Local-authority averages across all property types, indicative only. Contains public sector information licensed under the Open Government Licence v3.0. Not investment advice.